[Ip-health] Another comparison of DiMasi and PhRMA clinicaltrialnumbers

pierchir at club-internet.fr pierchir at club-internet.fr
Wed Mar 16 03:04:35 PDT 2016

Hi all,
Another interesting aspect of this "study" is the opportunity costs of 
capital, or "time costs" :
"The $2.558 billion figure per approved compound is based on estimated 
average out-of-pocket costs of $1.395 billion and time costs (expected 
returns that investors forego while a drug is in development) of $1.163 
And what "investors" are expecting ? : "Capitalizing out-of-pocket costs to 
the point of marketing approval at a real discount rate of 10.5% yields a 
total pre-approval cost estimate of $2588 million (2013 dollars)."
This 10.5% rate is the yearly profit of pharmaceutical companies 
Then the more profitable pharmaceutical companies are, the more expensive 
R&D is, according to Di Masi. Isn't a nice sophism ?

-----Message d'origine----- 
From: Joel Lexchin
Sent: Wednesday, March 16, 2016 4:19 AM
To: Els Torreele
Cc: Ip-health
Subject: Re: [Ip-health] Another comparison of DiMasi and PhRMA 

But without knowing what drugs DiMasi looked at we can’t judge their 
therapeutic value. Also drugs for rare diseases by definition will have 
small numbers in the trials but since they often measure surrogate outcomes 
the small numbers don’t necessarily mean large therapeutic gains.

Joel Lexchin MD
School of Health Policy and Management
Faculty of Health
York University
4700 Keele St.
Toronto ON
Canada M3J 1P3
Tel: +416-736-2100 x 22119
Fax: +416-736-5227
E mail: jlexchin at yorku.ca

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