Cost to Bring a New Drug to Market is Now $2.6B

Nov. 20, 2014

According to a new study by the Tufts Center for the Study of Drug Development, the estimated cost of developing a new prescription medicine that gains marketing approval is now $2.6 billion.

The estimated cost is based on an average out-of-pocket cost of $1.4 billion and time costs of $1.2 billion.

In a study published in 2003, Tufts CSDD estimated the cost per approved new drug to be $802 million (which equates to about 1 billion 2013 dollars), based on average out-of-pocket costs of $403 million and capital costs of $401 million.

Read the Tufts press release