The Fiction Behind the Cost of New Drugs

Merrill Goozner

Published 2/16/12 in The Fiscal Times

The drug industry usually defends the high price on drugs – the latest cancer therapies are tipping the scales at $100,000 a year – by pointing to the large sums it spends on research and development. It is true that drug firms spend alarger share of their revenue on R&D than most other industries, typically anywhere from 15 to 20 percent of sales. And Eli Lilly ran a Super Bowl ad claiming the cost of developing a new drug has now risen to more than $1.3 billion.

Continue reading “The Fiction Behind the Cost of New Drugs”