Inventing drugs might be cheaper than you think …
There’s an oft-repeated statistic that it costs about $2.8 billion to take a potential drug from the lab through FDA approval. That figure is almost always accompanied with the caveat that it came from industry-sponsored research with murky methodology and thus should be taken with some quantity of salt.
Now, a group of researchers has combed through publicly available data and come up with a more transparent method of analysis. They also arrived at a smaller number: $1.3 billion per drug.
As STAT’s Ed Silverman and Matthew Herper report, the entire effort is meant to deepen the conversation about how much drugs costs to develop — and, by extension, how much society should pay once they’re approved. And on that score, the early returns are promising. Critics have already called out deficiencies in the underlying data, questioned some of the new paper’s assumptions, and pointed out that measuring cost does little to inform the debate over just how valuable a given treatment might be.
Read more.
Now, a group of researchers has combed through publicly available data and come up with a more transparent method of analysis. They also arrived at a smaller number: $1.3 billion per drug.
As STAT’s Ed Silverman and Matthew Herper report, the entire effort is meant to deepen the conversation about how much drugs costs to develop — and, by extension, how much society should pay once they’re approved. And on that score, the early returns are promising. Critics have already called out deficiencies in the underlying data, questioned some of the new paper’s assumptions, and pointed out that measuring cost does little to inform the debate over just how valuable a given treatment might be.
Read more.
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