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.’