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Research and development spending to bring a single cancer drug to market and revenues after approval

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To get a general idea of how many research and development (R&D) dollars are needed to develop cancer medications, investigators examined regulatory filings for 10 manufacturers and their products. All of the drugmakers included in the U.S.

To get a general idea of how many research and development (R&D) dollars are needed to develop cancer medications, investigators examined regulatory filings for 10 manufacturers and their products. All of the drugmakers included in the U.S. Securities and Exchange Commission analysis had received FDA approval for a cancer treatment in the period spanning January 1, 2006–December 31, 2015. Based on a development time frame of a median 7.3 years, the approximate cost of bringing a single cancer drug to market was pegged at $648 million. The figure is much lower than earlier calculations—including a recent estimate of $2.7 billion—which have been used as a rationale for the exorbitant pricing on cancer therapies. The analysis also determined that manufacturers enjoy a generous return on their investment, with the 10 companies in the study ringing up a collective $67 billion in sales revenue from their 10 drugs since approval.

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https://jamanetwork.com/journals/jamainternalmedicine/article-abstract/2653012

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