Name: Pharmaceuticals: cost of drug development in the U.S. since 1975
Creator: Statista

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This statistic depicts the cost of developing a new drug in the United States from the 1970s to the early 2010s. In the 1970s, the cost of developing a new pharmaceutical drug stood at approximately 179 million U.S. dollars.

Cost of developing a drug in the U.S. from the 1970s until today (in million U.S. dollars)*

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Release date

July 2019

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Region

United States

Survey time period

1975 to early 2010s

Supplementary notes

PhRMA stands for Pharmaceutical Research and Manufacturers of America.
* Including the cost of failures.
** Previous research by the same author estimated average R&D costs in the early 2000s at $1.2 billion in constant 2000 dollars (see DiMasi JA, Grabowski, HG. The cost of biopharmaceutical R&D: is biotech different? Manage Decis Econ. 2007;28:469-479). That estimate was based on the same underlying survey as the author’s estimates for the 1990s to early 2000s reported here ($800 million in constant 2000 dollars), but updated for changes in the cost of capital.