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IN THE pharmaceuticals business there are few issues more loaded than the cost of developing a new drug. For a number of years estimates from industry groups on either side of the Atlantic have put it at $1.2 billion-1.8 billion.oseph DiMasi, director of economic analysis at the Tufts centre, says the most useful aspect of the $2.6 billion figure in his study is that it is comparable with previous figures. In 2003 his centre put the cost of drug development at $802m.
As the rare-disease drug business has expanded, though, the high prices could drive up insurance costs for everyone. Spending on orphan drugs is growing twice as fast as the overall drug market, according to the market research firm Evaluate. For example, the orphan drug Soliris has an average annual cost of up to $488,000 per patient for the treatment of paroxysmal nocturnal hemoglobinuria â one of two ultra-rare diseases for which it is approved. It netted $2.59 billion in sales last year.