Pharma companies inflating R&D costs?

Even accounting for what the money would have earned if invested in the market, the returns are seven times the costs.
The study published on Monday showed that within about four years of drug approval, revenue from the sale of the drugs studied was on average nine-fold higher than the R&D spending.

A recent study in the Journal of the American Medical Association (JAMA) has concluded that R&D costs a company just $648 million on average to bring a cancer drug to the market –– a small fraction of the $2.7 billion the industry claims is the average cost of drug discovery.

Though the study was restricted to cancer drugs, it raises questions about whether R&D costs are much lower than claimed by the pharma industry and if so whether patent terms need to be so long and drug prices this high to recover these costs. Full Story

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