A Bitter Pill

Rapidly increasing R&D costs are often exhorted as the primary cause for the rise in prescription drug prices, which have been soaring since the mid-’90s. The cost of a newly developed drug is $900 million, according to the recently revised estimate from the Tufts Center for the Study of Drug Development. But a breakdown of the costs and profits of an average prescription reveals that R&D accounts for just a measly 16% of the overall price. The retailer cost of operations; manufacturer sales, marketing, and operating costs; and the cost of materials are all much bigger line items.

News Analysis

SARS Sequel?

False Positives

Morality Play

» A Bitter Pill

Stress Test

Rare Opportunity

Show and Tell

Joint by Joint

File-o-Facts

Columbia’s Lesson?

Briefly Noted