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Despite having some success in launching and developing new drugs in recent years, the returns on R&D efforts by a dozen of the biggest pharmaceutical companies has declined from 10.1 percent in 2010 to a projected 3.7 percent this year, according to a new report.

During that period, the average peak sales for each drug reached $394 million, which represented an 11.4 percent year-over-year drop from 2010, according to the analysis by the Deloitte Centre for Health Solutions. And while costs to discover, develop, and launch a drug have largely stabilized at slightly more than $1.5 billion, the upshot is that blockbuster costs are not producing blockbuster sales.

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  • ….and that’s good. Zero interest rate on the bank, 5% on pharma would be OK. Don’t spread this nonsense number of 1.5 billion R&D costs per drug. It’s such an utter nonsense. Kick those guys in the axx spreading such bollocks.

  • Per last week’s WSJ piece, NONE of the top 20 prescribed drugs were developed in the last decade. Gone are the days when we could crank out 3-4 new formulations of erythromycin every couple years and charge premium pricing.

  • Hmmmm – “So unless somebody starts to do things fundamentally different about productivity ….” please cue young Mr Einstein: ‘To continue to do the same things in the same way while expecting different results is the definition of insanity.’

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