I love this back and forth debate about how much drugs cost to bring to market -- focusing ostensibly on the R&D costs. Problem is -- apparently -- no one can agree on where R&D costs start and finish. Nor can they agree on which drugs are coming to market. Is it NMEs? Is it variations on existing drugs? Both? Neither?
We also get to argue about whether discovery is included or not. Whether the cost of capital should be considered or not. Whether the government or public subsidizes the process, to what degree, and whether that should be deducted from the costs in the analysis. We can't even agree whether we're including biotechs or not in our analyses.
That's how we end up with an estimate of the cost of developing a new drug falling somewhere between $56 M and $11.9 B. We might be able to just barely slide a piece of paper through that crack. More like dozens and dozens of reams.
Posted by Bruce Lehr Feb 17th 2012.