Cost of Prescription Drug Development

Published December 5, 2014

I did a podcast interview with Yevgeniy Feyman of the Manhattan Institute, which went up on the Heartland site this morning. We discussed a new study showing it costs about $2.6 billion to bring a new prescription drug to market, which goes a long way towards explaining the cost of some medicines.

On the same topic, John R. Graham of the National Center for Policy Analysis had a blog post the other day on the study, addressing some of the criticism of this study and largely refuting them. I’ll leave you with his conclusion:

The reason the Tufts group’s research attracts such heightened criticism is that it conclusively demonstrates that prescription drug prices and costs can only come down by dramatically increasing R&D productivity, not by railing against the pharmaceutical industry’s “greed.”

Read his whole piece here: Drug Research and Its Discontents: Does It Really Cost $2.6 Billion to Research a New Medicine?

Drug Research and Its Discontents: Does It Really Cost $2.6 Billion to Research a New Medicine? – See more at: http://healthblog.ncpa.org/drug-research-and-its-discontents-does-it-really-cost-2-6-billion-to-research-a-new-medicine/?utm_source=newsletter&utm_medium=email&utm_campaign=HA#more-39540

 

There have been five criticisms of the Tufts group’s estimate: Lack of peer review, use of proprietary data, excluding the value of R&D tax benefits, including the cost of capital as a real cost and the fact that the research-based pharmaceutical industry funds the Tufts group. – See more at: http://healthblog.ncpa.org/drug-research-and-its-discontents-does-it-really-cost-2-6-billion-to-research-a-new-medicine/?utm_source=newsletter&utm_medium=email&utm_campaign=HA#more-39540
There have been five criticisms of the Tufts group’s estimate: Lack of peer review, use of proprietary data, excluding the value of R&D tax benefits, including the cost of capital as a real cost and the fact that the research-based pharmaceutical industry funds the Tufts group. – See more at: http://healthblog.ncpa.org/drug-research-and-its-discontents-does-it-really-cost-2-6-billion-to-research-a-new-medicine/?utm_source=newsletter&utm_medium=email&utm_campaign=HA#more-39540