J Health Econ. 1991 Jul;10(2):107-42.

Cost of innovation in the pharmaceutical industry.

DiMasi JA, Hansen RW, Grabowski HG, Lasagna L.

Source

Center for the Study of Drug Development, Tufts University, Boston, MA 02111.

Abstract

The research and development costs of 93 randomly selected new chemical entities (NCEs) were obtained from a survey of 12 U.S.-owned pharmaceutical firms. These data were used to estimate the pre-tax average cost of new drug development. The costs of abandoned NCEs were linked to the costs of NCEs that obtained marketing approval. For base case parameter values, the estimated out-of-pocket cost per approved NCE is $114 million (1987 dollars). Capitalizing out-of-pocket costs to the point of marketing approval at a 9% discount rate yielded an average cost estimate of $231 million (1987 dollars).

Comment in

J Health Econ. 1991 Jul;10(2):235-8.

PMID:: 10113009; [PubMed - indexed for MEDLINE]

Publication Types, MeSH Terms

Publication Types

Research Support, Non-U.S. Gov't

MeSH Terms

LinkOut - more resources

Full Text Sources

EBSCO

Other Literature Sources

COS Scholar Universe

Supplemental Content

Save items

Related citations in PubMed

The price of innovation: new estimates of drug development costs. [J Health Econ. 2003]
The price of innovation: new estimates of drug development costs.
DiMasi JA, Hansen RW, Grabowski HG. J Health Econ. 2003 Mar; 22(2):151-85.
Research and development costs for new drugs by therapeutic category. A study of the US pharmaceutical industry. [Pharmacoeconomics. 1995]
Research and development costs for new drugs by therapeutic category. A study of the US pharmaceutical industry.
DiMasi JA, Hansen RW, Grabowski HG, Lasagna L. Pharmacoeconomics. 1995 Feb; 7(2):152-69.
New estimates of drug development costs. [J Health Econ. 2003]
New estimates of drug development costs.
Frank RG. J Health Econ. 2003 Mar; 22(2):325-30.
Review Returns to R&D on new drug introductions in the 1980s. [J Health Econ. 1994]
Review Returns to R&D on new drug introductions in the 1980s.
Grabowski HG, Vernon JM. J Health Econ. 1994 Dec; 13(4):383-406.
Review The cost of drug development: a systematic review. [Health Policy. 2011]
Review The cost of drug development: a systematic review.
Morgan S, Grootendorst P, Lexchin J, Cunningham C, Greyson D. Health Policy. 2011 Apr; 100(1):4-17. Epub 2011 Jan 21.

See reviews... See all...

Cited by 9 PubMed Central articles

DRAR-CPI: a server for identifying drug repositioning potential and adverse drug reactions via the chemical-protein interactome. [Nucleic Acids Res. 2011]
DRAR-CPI: a server for identifying drug repositioning potential and adverse drug reactions via the chemical-protein interactome.
Luo H, Chen J, Shi L, Mikailov M, Zhu H, Wang K, He L, Yang L. Nucleic Acids Res. 2011 Jul; 39(Web Server issue):W492-8. Epub 2011 May 10.
Food and drug administration's critical path initiative and innovations in drug development paradigm: Challenges, progress, and controversies. [J Pharm Bioallied Sci. 2010]
Food and drug administration's critical path initiative and innovations in drug development paradigm: Challenges, progress, and controversies.
Mahajan R, Gupta K. J Pharm Bioallied Sci. 2010 Oct; 2(4):307-13.
Development of a sufficient design for estimation of fluconazole pharmacokinetics in people with HIV infection. [Br J Clin Pharmacol. 2008]
Development of a sufficient design for estimation of fluconazole pharmacokinetics in people with HIV infection.
Roos JF, Kirkpatrick CM, Tett SE, McLachlan AJ, Duffull SB. Br J Clin Pharmacol. 2008 Oct; 66(4):455-66. Epub 2008 Jun 28.

See all...

Related information

Related Citations
Calculated set of PubMed citations closely related to the selected article(s) retrieved using a word weight algorithm. Related articles are displayed in ranked order from most to least relevant, with the “linked from” citation displayed first.
Cited in PMC
Full-text articles in the PubMed Central Database that cite the current articles.
Cited in Books
NCBI Bookshelf books that cite the current articles.

Recent activity

Clear Turn Off Turn On

Cost of innovation in the pharmaceutical industry.
Cost of innovation in the pharmaceutical industry.
J Health Econ. 1991 Jul ;10(2):107-42.

PubMed
The role of early left-brain injury in determining lateralization of cerebral sp...
The role of early left-brain injury in determining lateralization of cerebral speech functions.
Ann N Y Acad Sci. 1977 Sep 30 ;299:355-69.

PubMed
Prediction of use of psychiatric services: application of the CART (classificati...
Prediction of use of psychiatric services: application of the CART (classification and regression trees) algorithm.
J Ment Health Adm. 1991 Winter ;18(1):27-34.

PubMed
Metabolic response to a pantothenic acid deficient diet in humans.
Metabolic response to a pantothenic acid deficient diet in humans.
J Nutr Sci Vitaminol (Tokyo). 1976 ;22(4):339-46.

PubMed
Lipoma of the corpus callosum.
Lipoma of the corpus callosum.
J Neurol Neurosurg Psychiatry. 1976 Dec ;39(12):1179-85.

PubMed

Your browsing activity is empty.

Activity recording is turned off.

Turn recording back on

PubMed

Result Filters

Display Settings:

Send to: