The cost of developing a new drug


Via “EyeOnFDA”:http://www.eyeonfda.com/eye_on_fda/2006/10/synopsis_of_the.html, I’ve gotten my hands on the CBO(Congressional Budget Office) “Research and Development in the Pharmaceutical Industry”:http://www.cbo.gov/ftpdocs/76xx/doc7615/10-02-DrugR-D.pdf report. The main points are:

* the $800 million figure for the development of a drug reflects the cost of a New Molecular Entity (NME)
* NME(New Molecular Entity)s represent most of the major therapeutic advances
* R&D spending on an NME(New Molecular Entity) is on the rise, possibly because of lower risk/fault tolerance, therapeutic focus shifting toward chronic illness
* R&D cost for incremental improvements (“me-too” drugs) is about 65-70% lower than the R&D cost for NME(New Molecular Entity)s

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