Cost of innovation in the pharmaceutical industry.
Publication
, Journal Article
DiMasi, JA; Hansen, RW; Grabowski, HG; Lasagna, L
Published in: Journal of health economics
July 1991
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).
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Published In
Journal of health economics
DOI
EISSN
1879-1646
ISSN
0167-6296
Publication Date
July 1991
Volume
10
Issue
2
Start / End Page
107 / 142
Related Subject Headings
- United States
- Humans
- Health Policy & Services
- Drug Industry
- Drug Evaluation, Preclinical
- Drug Evaluation
- Data Interpretation, Statistical
- Data Collection
- Costs and Cost Analysis
- 4407 Policy and administration
Citation
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DiMasi, J. A., Hansen, R. W., Grabowski, H. G., & Lasagna, L. (1991). Cost of innovation in the pharmaceutical industry. Journal of Health Economics, 10(2), 107–142. https://doi.org/10.1016/0167-6296(91)90001-4
DiMasi, J. A., R. W. Hansen, H. G. Grabowski, and L. Lasagna. “Cost of innovation in the pharmaceutical industry.” Journal of Health Economics 10, no. 2 (July 1991): 107–42. https://doi.org/10.1016/0167-6296(91)90001-4.
DiMasi JA, Hansen RW, Grabowski HG, Lasagna L. Cost of innovation in the pharmaceutical industry. Journal of health economics. 1991 Jul;10(2):107–42.
DiMasi, J. A., et al. “Cost of innovation in the pharmaceutical industry.” Journal of Health Economics, vol. 10, no. 2, July 1991, pp. 107–42. Epmc, doi:10.1016/0167-6296(91)90001-4.
DiMasi JA, Hansen RW, Grabowski HG, Lasagna L. Cost of innovation in the pharmaceutical industry. Journal of health economics. 1991 Jul;10(2):107–142.
Published In
Journal of health economics
DOI
EISSN
1879-1646
ISSN
0167-6296
Publication Date
July 1991
Volume
10
Issue
2
Start / End Page
107 / 142
Related Subject Headings
- United States
- Humans
- Health Policy & Services
- Drug Industry
- Drug Evaluation, Preclinical
- Drug Evaluation
- Data Interpretation, Statistical
- Data Collection
- Costs and Cost Analysis
- 4407 Policy and administration