Economics > Cost of Developing New Drugs Higher Than Thought
Via Marginal Revolutions:
The research by DiMasi et al. showing that the cost of the average new drug (new chemical entity) is about $802 million dollars is controversial with many people suggesting the results were doctored. A new paper, Estimating the Costs of New Drug Development: Is it really $802m?, by two economists at the Federal Trade Commission, replicates that research using somewhat different data and they indeed find that DiMasi et al. are wrong. The average new drug does not cost $802...it costs between $839 and $868 million.
Posted by lesjones