Cost of bringing new drug to market now around $2.6 billion, says Tufts CSDD

19 November 2014

Developing a new prescription medicine that gains marketing approval, a process often lasting longer than a decade, is estimated to cost $2,558 million, according to a new study by the Tufts Center for the Study of Drug Development.

The $2,558 million figure per approved compound is based on estimated:

Average out-of-pocket cost of $1,395 million; and
Time costs (expected returns that investors forego while a drug is in development) of $1,163 million.

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