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Published on: June 27, 2014
The Financial Benefits of Faster Development Times: Integrated Formulation Development, Real-Time Manufacturing, and
Joseph A DiMasi1, Michael Wilkinson2
1Tufts Center for the Study of Drug Development, Tufts University, 75 Kneeland Street, Suite 1100, Boston, MA, 02111, USA. joseph.dimasi@tufts.edu.
Accelerating drug development with an integrated platform significantly boosts financial returns for pharmaceutical companies. This approach enhances innovation incentives by reducing time-to-market and maximizing intellectual property protection.
Area of Science:
- Pharmaceutical Sciences
- Drug Development
- Health Economics
Background:
- Faster drug development accelerates patient access to novel therapies.
- Reduced development timelines offer significant financial advantages to drug developers.
- Integrated platforms can streamline early-stage drug development processes.
Purpose of the Study:
- To quantify the financial gains associated with accelerated drug development using an integrated platform.
- To compare the financial impact of an alternative early-stage drug development paradigm against traditional methods.
- To provide a real-world financial analysis of quicker drug development.
Main Methods:
- Utilized data from a drug development and manufacturing services organization for 19 drug product development projects.
- Estimated development time reductions for three key activities: first-in-human to proof-of-concept (FIH-PoC), modified release (MR), and enhanced solubility (ES) formulation development.
- Established a traditional drug development paradigm as the base case for financial impact assessment.
Main Results:
- Integrated development model yielded substantial financial benefits compared to traditional methods.
- Estimated after-tax financial benefits per approved new drug ranged from $230.5M-$290.1M (FIH-PoC), $196.4M-$247.5M (MR), and $102.6M-$275.5M (ES).
- These financial gains are realized through reduced time-to-market and extended intellectual property protection.
Conclusions:
- The integrated drug development model demonstrates significant financial advantages over traditional approaches.
- Accelerated drug development translates directly into enhanced financial returns and innovation incentives.
- This paradigm shift offers a compelling strategy for optimizing drug development investments.
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