Public
Citizen, an American Consumer Group, challenges the long
standing belief that it costs around $500 million to develop
a new medicine.However, the Pharmaceutical Research and
Manufacturers of America claim that it costs above $500
to develop medicines. Included in this price is the research
on medicines that are not brought onto the market and tax.
Public
Citizen report suggests that it costs between $57-71m to
research and develop a new drug. They argue that the estimate
of $500 is based on unrealistic risk and tax assessments.
They also argue that the pharamceutical companies in fact
spend more on marketing drugs than they do on their development.
Comment:
This will be another damning blow on the American pharmaceutical
industry which has had to spend the last two years fighting
allegations that it over prices drugs. The most aggressive
attack has been that on the selling of drugs to developing
countries who just do not have the budget to pay the prices
that the pharmaceuticals ask for.
