Analytical Framework for Examining the Value of Antibacterial Products. 3.2.11 Total Product Life


Similar to DiMasi et al. (2004), we use 20 years to characterize the average life cycle of a new drug upon market approval.  Even though the expected revenues from sales in years beyond 20 contribute very little to private ENPV due to discounting, the model allows the user to vary this parameter for what-if scenario analysis if needed.

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