Question

The cost of developing a drug from the laboratory to the market place is BEST estimated to be (in Australian dollars):

A) $1 million - $5 million

B) $5 million - $10 million

C) $10 million - $50 million

D) $50 million or more

Answer 1

The cost of developing a drug to the market is best estimated to exceed $50 million AUD, typically averaging around $800 million and taking over a decade due to research, testing, and competition factors.

Step-by-step explanation:

The cost of developing a drug from the laboratory to the marketplace is best estimated to be $50 million or more in Australian dollars. Developing a new pharmaceutical product is an extensive and expensive process that, on average, can cost $800 million and take more than a decade to complete. This figure includes the costs associated with discovery, performing the necessary safety tests, and bringing the drug to market. It's also worth noting that if a research and development (R&D) project fails, it could result in significant financial losses for the firm or even drive it out of business. Additionally, significant investments are often made in R&D to secure a competitive edge which is often short-lived due to competitors copying the innovation.