Returns to R&D on new drug introductions in the 1980s.
Publication
, Journal Article
Grabowski, HG; Vernon, JM
Published in: Journal of health economics
December 1994
This study finds that the mean IRR for 1980-84 U.S. new drug introductions is 11.1%, and the mean NPV is 22 million (1990 dollars). The distribution of returns is highly skewed. The results are robust to plausible changes in the baseline assumptions. Our work is also compared with a 1993 study by the OTA. Despite some important differences in assumptions, both studies imply that returns for the average NCE are within one percentage point of the industry's cost of capital. This is much less than what is typically observed in analyses based on accounting data.
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Published In
Journal of health economics
DOI
EISSN
1879-1646
ISSN
0167-6296
Publication Date
December 1994
Volume
13
Issue
4
Start / End Page
383 / 406
Related Subject Headings
- United States Office of Technology Assessment
- United States Food and Drug Administration
- United States
- Research Support as Topic
- Income
- Health Policy & Services
- Health Policy
- Drugs, Investigational
- Drug Industry
- Data Collection
Citation
APA
Chicago
ICMJE
MLA
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Grabowski, H. G., & Vernon, J. M. (1994). Returns to R&D on new drug introductions in the 1980s. Journal of Health Economics, 13(4), 383–406. https://doi.org/10.1016/0167-6296(94)90010-8
Grabowski, H. G., and J. M. Vernon. “Returns to R&D on new drug introductions in the 1980s.” Journal of Health Economics 13, no. 4 (December 1994): 383–406. https://doi.org/10.1016/0167-6296(94)90010-8.
Grabowski HG, Vernon JM. Returns to R&D on new drug introductions in the 1980s. Journal of health economics. 1994 Dec;13(4):383–406.
Grabowski, H. G., and J. M. Vernon. “Returns to R&D on new drug introductions in the 1980s.” Journal of Health Economics, vol. 13, no. 4, Dec. 1994, pp. 383–406. Epmc, doi:10.1016/0167-6296(94)90010-8.
Grabowski HG, Vernon JM. Returns to R&D on new drug introductions in the 1980s. Journal of health economics. 1994 Dec;13(4):383–406.
Published In
Journal of health economics
DOI
EISSN
1879-1646
ISSN
0167-6296
Publication Date
December 1994
Volume
13
Issue
4
Start / End Page
383 / 406
Related Subject Headings
- United States Office of Technology Assessment
- United States Food and Drug Administration
- United States
- Research Support as Topic
- Income
- Health Policy & Services
- Health Policy
- Drugs, Investigational
- Drug Industry
- Data Collection