Question

{research, incidence} How is most pharmaceutical research paid for? What is the most costly aspect of pharmaceutical research?

Answer 1

Currently, the pharmaceutical research in USA is paid for by the companies themselves, which makes the Research & Development risk enormous for the industry. One of the article mentions that on an average, it takes 12 years and $230 million to develop a new drug. Nor is it appreciated that 7 of every 10 products that reach the marketplace never actually recover average cost of development.

Only government intervention, support and collaboration policies can help the industry in such a scenario. Further, the competition from large firms is high in this industry, making it costly to do business in this industry.