Economics of drug discovery

1. Economics of drug
discovery
Name – Tamanna kumari (2116599)
M Pharm. Pharmacology
G.H.G. Khalsa College of Pharmacy Gurusar
Sadhar, Ludhiana

2. Introduction of Drug Discovery
• Drug discovery is the area of research and development to the most
amount of time and money. The process can involve scientists to
determine the germs, viruses, and bacteria that cause a specific
disease or illness.
• The time frame can range from 3–20 years and costs can range
between several billion to tens of billions of dollars. Research teams
attempt to break down disease components to find abnormal
events/processes taking place in the body. Then they detect the
chemical compound for treatment.
• After "discovery" and a creation of a chemical compound,
pharmaceutical companies move forward with the Investigational
New Drug (IND) Application from the FDA. After the investigation into
the drug and given approval, pharmaceutical companies can move
into pre-clinical trials and clinical trials.[

3. • Drug discovery and pre-clinical trials focus on non-
human subjects and work on animals such as rats. This
is the most inexpensive phase of testing.
• The Food and Drug Administration mandates a 3 phase
clinical trial testing that tests for side effects and the
effectiveness of the drug with a single phase clinical trial
costing upwards of $100 million.
• After a drug has passed through all three phases, the
pharmaceutical company can move forward with a New
Drug Application from the FDA. In 2014,
the FDA charged between 1 million to 2 million for an
NDA.

4. • A new study in 2020 estimated that the median cost of
getting a new drug into the market was $985 million,
and the average cost was $1.3 billion, which was much
lower compared to previous studies, which have placed
the average cost of drug development as $2.8 billion

8. The present scenario
• 800 million spent to bring new drug in market.
• The intial discovery and basic reserve involving all software studies
utilizing around 30% Of complete cost
• The preclinical testing utilizing 15-20% of complete cost
• 40% of total cost are utilizing in clinical trials
• The 10-15% utilizing during the marketing phase of drug and for some
regulatory requirements.

12. The present day cost involve in drug discovery
• The usage of modern computational process has reduced the time
period involved in drug discovery
• The combined chemistry and high throughput screening methodare
capable of synthesizing and screening thousands of compound
virtually thus the time and cost involved in this process has been
reduced.
• The in silico Screening technologyhas also helped in screening lead
identify virtually.
• But still cost involved in drug discovery process is high and various
measure are taken to reduce it.

13. Thank you