Examination of Clinical Trial Costs and Barriers for Drug Development. E.3.1 High Financial Cost


  • Studies estimate that it now costs somewhere between $161 million and $2 billion to bring a new drug to market.
  • The aging of a larger segment of the population has resulted in a shift to chronic and degenerative disease research and an ensuing increase in development costs. Nonetheless, many companies pursue drugs for chronic diseases to have a large and steady revenue stream. Drugs for shorter-term conditions are less attractive to drug sponsors and their investors because it is less likely that the high costs of development will be recouped through revenues and earn a profit.

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