Prescription
Drug Pricing Pathfinder
FACTORS AFFECTING THE COST & PRICE
OF DRUGS
Creating drugs is one of the most expensive undertakings imaginable. A single drug can be the result of a dozen years of research and millions of dollars in investment. The drug industry often quotes $500 million as the amount it costs to bring a new drug to market, when one factors in the costs of research that does not yield a product. Although there are many factors contributing to the industry's costs in developing a new drug, the costs are also offset by 20-year statutory patent protection, allowing drug companies to retain a monopoly on the drug for the duration of the patent life.
1. Pharmaceutical Industry Costs