The pharmaceutical industry is currently struggling to defend the high cost of drugs. It is using advertising and lobbying to reach lawmakers and payers (read, for example, "#Pharma Ramps Up Ads & Lobbying to Fend Off Rx Pricing Regulation").
PhRMA's multi-million dollar "From Hope to Cures" campaign, for example, pulls the heart strings by featuring a 5-year-old boy with Type 1 diabetes. This is part of PhRMA's pledge to spend several million dollars this year, and 10% more than in 2015, on digital, radio and print ads that emphasize the industry’s role in developing new drugs and advancing medical science. It also plans to spend more money lobbying and donated to political campaigns.
In these campaigns, the strategy is less focused on defending drug costs to pay for the cost of developing new drugs and more focused on the benefit of new drugs in fighting intransigent diseases such as diabetes, rare cancers, and Alzheimer's Disease.
Nevertheless, many pharma CEOs still speak of "return on capital" to defend high drug prices (read, for example, "Merck CEO Repeats Same Old Defense for Raising Prices of #Pharma Drugs" and "Pfizer, Channeling Shkreli, Starts New Year by Increasing Prices of Nearly 100 Drugs").
So capital expenditures (R&D costs) are still a big deal for pharma executives. I have been reporting on various estimates of the costs to bring new drugs to market for several years now. Most of these estimates come from the Tufts Center for the Study of Drug Development (read, for example, "Cost to Bring a New Drug to Market Is $2.6 Billion According to Tufts - 3X More Than in 2003!").
Tufts has a new estimate of these costs that includes a new cost item.
Read more »
In these campaigns, the strategy is less focused on defending drug costs to pay for the cost of developing new drugs and more focused on the benefit of new drugs in fighting intransigent diseases such as diabetes, rare cancers, and Alzheimer's Disease.
Nevertheless, many pharma CEOs still speak of "return on capital" to defend high drug prices (read, for example, "Merck CEO Repeats Same Old Defense for Raising Prices of #Pharma Drugs" and "Pfizer, Channeling Shkreli, Starts New Year by Increasing Prices of Nearly 100 Drugs").
So capital expenditures (R&D costs) are still a big deal for pharma executives. I have been reporting on various estimates of the costs to bring new drugs to market for several years now. Most of these estimates come from the Tufts Center for the Study of Drug Development (read, for example, "Cost to Bring a New Drug to Market Is $2.6 Billion According to Tufts - 3X More Than in 2003!").
Tufts has a new estimate of these costs that includes a new cost item.
Read more »
Tufts New Estimate of Costs to Bring a Drug to Market & Beyond
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March 11, 2016
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Reviewed by admin
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March 11, 2016
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