[Ip-health] New Tufts study on R&D costs

Biotech. Info. Inst. biotech at biopharma.com
Fri Nov 14 13:42:43 PST 2014


I guess $1.55 billion.

Big Pharma has been cutting back, merging and purging, laying off staff, shunning and shedding presumed more risky R&D, off-shoring R&D and manufacturing to cheaper developing countries, licensing-in products rather than doing R&D themselves, etc. for so long now, maybe they actually have relatively (e.g., with inflation) reduced their average successful product development costs.  Plus, there are simply fewer blockbusters being developed, with indications/markets getting smaller, more niche oriented, which should reduce size and costs of late-stage trials.  

But on the other hand, all the cutting, merging and purging could well have made Big Pharma even dumber, more prone to waste and failures, and development costs could be way up.  

It would be interesting to see comparisons between Big Pharma and much smaller biotech business model companies.  

What are the stock analysts now saying about average cost of development?  They likely have/use better real world estimates than Tufts.

Ronald A. Rader
President 
Biotechnology Information Institute
1700 Rockville Pike, Suite 400
Rockville, MD 20852
Phone:  301-424-0255
E-mail:  biotech at biopharma.com
Web sites:  www.bioinfo.com; www.biopharma.com; 
   www.biosimilarspipeline.com; www.biopharmacopeia.com




On Nov 14, 2014, at 12:35 PM, Jamie Love <james.love at keionline.org> wrote:

> Next week, a new version of the Tufts study on R&D costs will be released.
> 
> KEI will give $50 to the person who comes the closed in predicting the new
> figure for the cost of R&D for the lead indication of a new chemical entity.
> 
> An abstract of the earlier 2003 study,"The price of innovation: new
> estimates of drug development costs" is available here:
> 
> http://www.ncbi.nlm.nih.gov/pubmed/12606142
> 
> 
> The 2003 study put the number at $802 million (not $800 million, but $802
> million), in 2000 dollars.
> 
> As I said, $50 for the closest estimate, published on IP-Health, before the
> new number is announced (or leaked).
> 
> Jamie
> 
> --
> James Love.  Knowledge Ecology International
> http://www.keionline.org/donate.html
> KEI DC tel: +1.202.332.2670, US Mobile: +1.202.361.3040, Geneva Mobile:
> +41.76.413.6584, twitter.com/jamie_love
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