Anti-Cancer Drug Cost Regulations- Cocontainment for the Pharmaceutical Companies
Submitted By bbroberson
Anti-Cancer Drug Cost
Regulations- Cost-Containment for the Pharmaceutical Companies
University of Maryland University College
Drug development is a long, inefficient, and expensive process and takes 10 to 15 years for development at a cost of about $1.3 billion (Nelson, 2014). When speaking of research and development (R&D) for new drugs; a large number of drugs that go through research do not make it to the FDA or the marketplace. Critics of pharmaceutical companies point out that only a small portion of the pharmaceutical companies’ expenditures account for research and development (R&D). The majority of the money’s spent in marketing and administration. There is also controversy over the $1.3 billion figure as an actual cost. Reported by Nelson (2014) Dr. Kantarjian of M.D. Anderson disputes the $1.3 billion figure for development; he believes this figure to be inflated to cover ancillary expenses, salaries, bonuses, stock market returns, and other indirect costs not related to R&D.
The cost of cancer drug therapy is becoming impossible to justify or rationalize for both patient and society. New cancer drugs being approved by the Food and Drug Administration (FDA) are typically costing upwards of $100,000 per year and many times used in combination with other agents (Bunnell, 2012, p. 932) increasing the cost even more. These high priced anti-cancer drugs achieve only marginal benefit for the patient. Benefits achievements of 1.2-month prolongation of survival or progression-free survival (PFS) of 0.9-months. In addition, this prolongation of survival may include grade 3 and/or grade 4 side effect toxicities that severely decrease the quality of life (Fojo & Grady, 2009, p. 104). U.S. is a free market economy industry. And as such the pharmaceutical companies price products according to what they think their…...