J Health Econ May 2016 PMID 26928437

Innovation in the pharmaceutical industry: New estimates of R&D costs.

Joseph A DiMasi, Henry G Grabowski, Ronald W Hansen

Mentions

251
Peak: 2 in Jan 2021
across 6 sources since Aug 2019

Extended reach

69,158
potential audience

Total likes

45

Video views

797

Mentions per month

Aug 2019 – Aug 2025

Where it's discussed

  • News192 articles
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  • X / Twitter16 posts
  • Facebook5 posts
  • YouTube2 videos
  • Reddit2 posts

AI synopsis

What people are saying

The overall tone reflects strong agreement with the article's assertion about increasing R&D costs, with comments referencing specific figures like $2.87 billion, and discussing the broader implications for industry and policy. Words like 'soaring', 'monstrous sums', and 'must-read' emphasize the perceived importance and potential influence of the research findings.

AgreementModerate agreement

Most discussions acknowledge the high costs of R&D and validate the article's findings, reflecting consensus on the rising industry expenses.

InterestHigh interest

Posts show a strong curiosity about drug development costs, regulatory impacts, and industry implications, indicating high interest.

EngagementModerate engagement

Several commenters reference studies, critique methodologies, or discuss regulatory and industry consequences, demonstrating a moderate level of engagement.

ImpactModerate impact

The discussions highlight the significance of the cost estimates for policy, industry strategy, and healthcare economics, suggesting a notable impact.

Abstract in brief

  • The study analyzed the research and development (R&D) costs for 106 new drugs, finding that the average out-of-pocket cost per approved drug was about $1.395 billion in 2013 dollars, with total costs (including capitalized expenses) reaching around $2.558 billion.
  • When considering post-approval R&D expenses, the total cost for developing a new drug increases to approximately $2.870 billion in 2013 dollars, reflecting rising industry costs over time.
  • The research also shows that total capitalized costs have grown at an average rate of 8.5% annually, which exceeds the rate of general inflation, indicating increasing investment and expenses in drug development.]

Top posts

Most liked on X and Bluesky
Andrew White
@andrewwhite01 · X

Closest I can see is DiMasi 2016 (https://t.co/aCVbLFBQNc) but they do not have failed pre-clinical compound data, just cost per phase/approved compound

Sep 8, 2021 · 4 likes · 30,014 followers View post →
Henk Jan Out
@HenkJanOut · X

@stephensenn https://t.co/VQnPKGmnDF and https://t.co/WoueA8hmo3

Aug 28, 2022 · 4 likes · 2,584 followers View post →
Pearl Freier
@PearlF · X

Below is what happens when the White House takes advice from the Arnold Foundation/ICER & the health insurance industry/PBMs on drug development. Check with Tufts for a few minutes on the level of investment it takes just for 1 new drug ('13-'14 data): https://t.co/bE3leuRigf https://t.co/5Y05dwUcjX

Sep 18, 2023 · 3 likes · 1 share · 9,609 followers View post →
Mary J. Ruwart Ph.D.
@MaryRuwart · X

R&D is increasing exponentially. The primary drivers behind soaring R&D are the increasing regulatory demands by the @US_FDA ("Innovation in the Pharmaceutical Industry: New Estimates of R&D Costs." Journal of Health Economics, May;47: 20–33) https://t.co/KbIeoSexui

Aug 2, 2019 · 2 likes · 1 share · 10,095 followers View post →
Connie L. Luthy
@MPDexpert · X

@sarah_cone @heyjudka @menten_ai Economist Joseph DiMasi created @TuftsCSDD . With collaborators Grabowski @DukeU Hansen @rochester_u , he has studied this over time. https://t.co/sWOJfnCfGH

Apr 2, 2022 · 1 like · 1,235 followers View post →
CCSは誘発地震を起こす可能性ある
@MD_PhD_ivermect · X

@stopexpo2025 @hiroyoshimura 創薬コストは先行研究の推定よりも大幅に小さいものであった(https://t.co/9BquSaGwnM)。一般に高額な薬価が正当化されるのは、新薬の開発は多額のコストを要すると想定されているからであるが、本研究の分析はこうした信念に疑問を投げかける。

Aug 12, 2025 · 4,612 followers View post →

All mentions

CCSは誘発地震を起こす可能性ある
@MD_PhD_ivermect · X

@marukun_1028 @KEa92vx5BiIh6Ox 創薬コストは先行研究の推定よりも大幅に小さいものであった(https://t.co/t7m0B6Oabt)。一般に高額な薬価が正当化されるのは、新薬の開発は多額のコストを要すると想定されているからであるが、本研究の分析はこうした信念に疑問を投げかける。

Aug 20, 2025 · 4,612 followers View post →
CCSは誘発地震を起こす可能性ある
@MD_PhD_ivermect · X

@stopexpo2025 @hiroyoshimura 創薬コストは先行研究の推定よりも大幅に小さいものであった(https://t.co/9BquSaGwnM)。一般に高額な薬価が正当化されるのは、新薬の開発は多額のコストを要すると想定されているからであるが、本研究の分析はこうした信念に疑問を投げかける。

Aug 12, 2025 · 4,612 followers View post →
Nathan Goodyear, MD, MD(H)
@drgoodyear · X

Supporting Evidence: * DiMasi JA, Grabowski HG, Hansen RW. Innovation in the pharmaceutical industry: New estimates of R&D costs. J Health Econ.2016;47:20-33. doi:10.1016/j.jhealeco.2016.01.012. * Waring MJ, Arrowsmith J, Leach AR, et al. An analysis of the attrition of drug

Oct 17, 2024 · 1,738 followers View post →
Karthik
@RunrScientist · X

RT @PearlF: Below is what happens when the White House takes advice from the Arnold Foundation/ICER & the health insurance industry/PBMs on…

Sep 18, 2023 · 1 share · 447 followers View post →
Pearl Freier
@PearlF · X

Below is what happens when the White House takes advice from the Arnold Foundation/ICER & the health insurance industry/PBMs on drug development. Check with Tufts for a few minutes on the level of investment it takes just for 1 new drug ('13-'14 data): https://t.co/bE3leuRigf https://t.co/5Y05dwUcjX

Sep 18, 2023 · 3 likes · 1 share · 9,609 followers View post →
techno capital
@technicolor_cap · X

For those of y'all interested in working in pharma/biotech, this is practically a must-read https://t.co/ekPB3u7EFu

Sep 25, 2022 · 238 followers View post →
Henk Jan Out
@HenkJanOut · X

@stephensenn https://t.co/VQnPKGmnDF and https://t.co/WoueA8hmo3

Aug 28, 2022 · 4 likes · 2,584 followers View post →
Connie L. Luthy
@MPDexpert · X

@sarah_cone @heyjudka @menten_ai Economist Joseph DiMasi created @TuftsCSDD . With collaborators Grabowski @DukeU Hansen @rochester_u , he has studied this over time. https://t.co/sWOJfnCfGH

Apr 2, 2022 · 1 like · 1,235 followers View post →
Isatou Sarr
@IsatouSarr4 · X

Innovation in the pharmaceutical industry: New estimates of R&D costs https://t.co/RalowakUxa

Oct 12, 2021 · 52 followers View post →
Miroslav Gasparek
@MiroGasparek · X

The paper published in the Journal of Health Economics reveals soaring prices of the R&D. A production cost for one drug can go as high as $2870 million, and total capitalized costs increase at an annual rate of 8.5% above general price inflation. https://t.co/2Phm7FMNv4

Oct 3, 2021 · 1,164 followers View post →
Andrew White
@andrewwhite01 · X

Closest I can see is DiMasi 2016 (https://t.co/aCVbLFBQNc) but they do not have failed pre-clinical compound data, just cost per phase/approved compound

Sep 8, 2021 · 4 likes · 30,014 followers View post →
off with the nazis heads
@fuckers2100 · X

@TomiHaataja @joonahermanni https://t.co/Gc8oQx68T1 https://t.co/6bQi9eIbyN

Jan 24, 2021 · 716 followers View post →
Ayman Grada, MD, MHA
@AymanGradaMD · X

Innovation in the pharmaceutical industry: New estimates of R&D costs https://t.co/xpGa0KGjxA

May 15, 2020 · 824 followers View post →
Bion at bitpharma.com
@bitpharma · X

@jimcramer Let’s talk about research project failure b/c from work like https://t.co/phPKFajpV4 only 12% projects succeed. We see 100s of projects but many (vaccines+antibodies) are “correlated assets” in Street parlance. The risk 0 work is real How will industry diversify this portfolio?

Apr 22, 2020 · 175 followers View post →
Kurz-Jüngling
@siquerty · X

@Senficon @clemensv @digihumanrights @taval Das können sich kassen nie im Leben leisten. Das sind monströse Summen. https://t.co/OtOWTfgE8c

Mar 15, 2020 · 241 followers View post →
Mary J. Ruwart Ph.D.
@MaryRuwart · X

R&D is increasing exponentially. The primary drivers behind soaring R&D are the increasing regulatory demands by the @US_FDA ("Innovation in the Pharmaceutical Industry: New Estimates of R&D Costs." Journal of Health Economics, May;47: 20–33) https://t.co/KbIeoSexui

Aug 2, 2019 · 2 likes · 1 share · 10,095 followers View post →