[Ip-health] New paper on cost of R&D of cancer medicines
mkamalyanni at Oxfam.org.uk
Wed Oct 18 17:08:53 PDT 2017
JAMA Intern Med. 2017 Sep 11. doi: 10.1001/jamainternmed.2017.3601. [Epub
ahead of print]
Research and Development Spending to Bring a Single Cancer Drug to Market
and Revenues After Approval.
Prasad V1,2,3, Mailankody S4,5.
A common justification for high cancer drug prices is the sizable research
and development (R&D) outlay necessary to bring a drug to the US market. A
recent estimate of R&D spending is $2.7 billion (2017 US dollars).
However, this analysis lacks transparency and independent replication.
To provide a contemporary estimate of R&D spending to develop cancer
DESIGN, SETTING, AND PARTICIPANTS:
Analysis of US Securities and Exchange Commission filings for drug
companies with no drugs on the US market that received approval by the US
Food and Drug Administration for a cancer drug from January 1, 2006,
through December 31, 2015. Cumulative R&D spending was estimated from
initiation of drug development activity to date of approval. Earnings were
also identified from the time of approval to the present. The study was
conducted from December 10, 2016, to March 2, 2017.
MAIN OUTCOMES AND MEASURES:
Median R&D spending on cancer drug development.
Ten companies and drugs were included in this analysis. The 10 companies
had a median time to develop a drug of 7.3 years (range, 5.8-15.2 years).
Five drugs (50%) received accelerated approval from the US Food and Drug
Administration, and 5 (50%) received regular approval. The median cost of
drug development was $648.0 million (range, $157.3 million to $1950.8
million). The median cost was $757.4 million (range, $203.6 million to
$2601.7 million) for a 7% per annum cost of capital (or opportunity costs)
and $793.6 million (range, $219.1 million to $2827.1 million) for a 9%
opportunity costs. With a median of 4.0 years (range, 0.8-8.8 years) since
approval, the total revenue from sales of these 10 drugs since approval
was $67.0 billion compared with total R&D spending of $7.2 billion ($9.1
billion, including 7% opportunity costs).
CONCLUSIONS AND RELEVANCE:
The cost to develop a cancer drug is $648.0 million, a figure
significantly lower than prior estimates. The revenue since approval is
substantial (median, $1658.4 million; range, $204.1 million to $22 275.0
million). This analysis provides a transparent estimate of R&D spending on
cancer drugs and has implications for the current debate on drug pricing.
Best wishes مع أطيب التمنيات
Mohga -Dictating to the computer so please forgive silly mistakes
Dr. Mohga Kamal-Yanni
Senior health & HIV policy advisor, Oxfam GB
Editor of www.globalhealthcheck.org
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