R&D Costs and Returns to New Drug Development: A Review of the Evidence


Book Section

© 2012 by Oxford University Press. All rights reserved. This article reviews the extensive literature on R&D costs and returns. The first section focuses on R&D costs and the various factors that have affected the trends in real R&D costs over time. The second section considers economic studies on the distribution of returns in pharmaceuticals for different cohorts of new drug introductions. It also reviews the use of these studies to analyze the impact of policy actions on R&D costs and returns. The final section concludes and discusses open questions for further research.

Full Text

Duke Authors

Cited Authors

  • DiMasi, JA; Grabowski, HG

Published Date

  • September 18, 2012

Book Title

  • The Oxford Handbook of the Economics of the Biopharmaceutical Industry

International Standard Book Number 13 (ISBN-13)

  • 9780199742998

Digital Object Identifier (DOI)

  • 10.1093/oxfordhb/9780199742998.013.0002

Citation Source

  • Scopus