FDA wants to help unproductive drugmakers

Given the rapid pace of scientific advances in medicine, you might think Big Pharma is in rude health. You would be wrong. Last year consultants at Deloitte estimated that returns on investment among the biggest American drugmakers fell to 3.2%, from 10.1% in 2010 (see chart). Many observers blame the rising cost of bringing new drugs to market.
It now costs an average of $2bn to develop a new drug, up from $1.2bn in 2010. One theory is that the easier discoveries have already been made. As medicines become more personalised, the returns per drug may be squeezed because fixed development costs are spread across a smaller pool of potential patients. Either way, firms may have fewer incentives to innovate.

The Economist

March 22, 2018

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