In a 500 word assignment, discuss why it is so expensive to produce one medication. Be sure to cite your references accordingly. Submit as an APA formatted paper.
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Economists from The Tufts Center estimated a cost of $2.6 billion to bring one new medication to the market. This includes costs associated with medications that fail to get approval, plus the costs associated with the entire research process. (1) Other estimates range from less than $100 million to $1.8 billion (US). The discrepancy in these estimates may be due to the fact that most studies on costs for drug research and development (R&D) are based on self-reported, unaudited data. (2)
The drug development process is exceedingly complex, as well as lengthy (on average, taking 10+ years for development) and therefore expensive. Studies suggest that another $300 million is spent on post-approval development, to test for new drug indications and dosages (1).
A combination of factors including health insurance, reductions in co-pays, and enhanced access to care for the uninsured mean that few patients pay much for even the most expensive medications …
Costs associated with bringing a new medication to market in the U.S. are high, and associated in part with the lengthy research and development process are examined. Why it is so expensive to produce on medication is discussed