Wednesday, May 14, 2008

How much does R&D for a new drug cost?

The drug industry has for a long time claimed the cost is close to $1 billion.

Former NEJM editor Marcia Angell in her book "The truth about the drug companies" claimed the real cost was $100 million.

Now an unlikely source chimes in, in an interview in Realtid. Lennart Forslund is an expert from the Swedish FDA and in a very frank interview he claims "researching drugs is expensive as hell."

His price tag--SEK 1 billion, or about $150 million.

1 comment:

Anonymous said...

Dr. Rost--here is the question:

If you sell to a repackager in large bottles 1000s, 5000s--and that repackager breaks down your large bottle and places them into 100 pill bottles and then places Wyeth's entire NDC on the repackaged 100 bottles--instead of the repackager's own NDC number--and that repackager sells those bottles to a retail pharmacy chain...
...which then dispenses those pills to a Medicaid patient.

Is, let's say, Wyeth responsible for paying on those units (pills) that Medicaid will subsequently BILL Wyeth under the NDC number for the 100 pill bottles?

--Even though the repackager placed Wyeth's NDC on those bottles?

---Even if Wyeth sold out the door in a larger bottle than the bottle size it is being invoiced by Medicaid?

Key to this quiz is the fact that when Medicaid bills Wyeth, it bills according to the total number of pills dispensed to Medicaid patients out of the actual bottle size the pharmacy used.

The bottle belongs to the repackager.
The NDC belongs to Wyeth

Should Wyeth pay rebates on those pills?

Better question: Does Wyeth pay rebates on those pills?

If someone takes the time to read this question carefully, and answer, I'd greatly appreciate it.

Thanks in Advance: