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An assessment of R&D productivity in the pharmaceutical industry
1Department of Economics, University of Siena, Siena, Italy. dimitri@unisi.it
Abstract:
Recent reports suggest that R&D productivity in the pharmaceutical industry can be strengthened by reducing costs both in the early phase and, mostly, in the clinical phase of drug discovery. However, a cost-benefit probabilistic analysis reveals that despite high costs, the clinical phase shows healthy productivity, whereas the early phase, particularly lead optimization, exhibits very low productivity.
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