Question

Is the high price of drugs determined by the high cost of developing a new drug? ( 300 words )

Answer 1

The high price of drugs is definitely determined by the high cost of developing a new drug. Conducting clinical trials along with all its phases is very costly and time-consuming. Getting the regulatory approval from the FDA is also time-consuming and costly. By the time all these phases are completed the time period of patent expiration decreases. Thus the market exclusivity of the drug gets reduced due to which the pharmaceutical companies charge a higher price for the drugs. the average cost to research and develop each successful drug is estimated to be $2.6 billion. it takes at least ten years for a new medicine to complete the journey from initial discovery to the marketplace, with clinical trials alone taking six to seven years on average.