Courtesy of Mark J. Perry, at Carpe Diem
Pharmaceutical Facts
Average Cost to develop a new drug (2006): $1.318 billion
Total R&D spending on drugs in 2007: $58.8 billion
Generic share of market in 2007: 67%
Percent of marketed drugs that cover R&D costs: Only 20%
Total number of drugs approved in 2007: 23
R&D as a percent of U.S. sales: 18.7%
Average effective patent life for major drugs: 11 years
Medicines currently in development: 2,700 compounds
For every 5,000-10,000 compounds tested, the number that make it to clinical trials: 5
For every 5 compounds that make it to clinical trials, the number that get FDA approval: 1
Probability that a compound tested eventually gets FDA approval: .01% (1/100th of 1%) to .02% (1/50th of 1%)
Source: Pharmaceutical Industry Profile 2008
