ArticleInquiry : a journal of medical care organization, provision and financing2015
The opportunity cost of capital: development of new pharmaceuticals.
Article in Inquiry : a journal of medical care organization, provision and financing, 2015. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 11 papers.
What it found
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The abstract states no effect estimate the extractor could read, or names no intervention and outcome on the map, so this paper lights no cell and moves no belief. It is still indexed, cited and linked below.
The trial behind it
Trials whose registry record cites this paper, or whose number appears in the abstract. A trial that started after this paper was published is citing it as background, not reporting it.
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Who cites it
11 citing papers in PubMed.
- A heuristic model for the cost of capital of healthcare facilities: estimates for five countries.BMC health services research · 2025Article
- Research and development investments for biologics independently developed by US biotechnology startups, 2017-2023.Health affairs scholar · 2025Article
- Assessing the Value of Further Investment in R&D Using Mixed Methods: A Case Study of Biosensor-Integrated Arteriovenous Grafts.Journal of market access & health policy · 2025Article
- The economic case for scaling up health research and development: Lessons from the COVID-19 pandemic.Proceedings of the National Academy of Sciences of the United States of America · 2024Article
- Delivering the precision oncology paradigm: reduced R&D costs and greater return on investment through a companion diagnostic informed precision oncology medicines approach.Journal of pharmaceutical policy and practice · 2023Article
- Optimal global spending for group A Streptococcus vaccine research and development.NPJ vaccines · 2023Article
- Comparison of Research Spending on New Drug Approvals by the National Institutes of Health vs the Pharmaceutical Industry, 2010-2019.JAMA health forum · 2023Article
- Production of indigo by recombinant bacteria.Bioresources and bioprocessing · 2023Review
- Evaluation of the Clinical, Technical, and Financial Aspects of Cost-Effectiveness Analysis of Artificial Intelligence in Medicine: Scoping Review and Framework of Analysis.JMIR medical informatics · 2022Article
- Estimated Research and Development Investment Needed to Bring a New Medicine to Market, 2009-2018.JAMA · 2020Article
- Estimating the Cost of Industry Investment in Drug Research and Development: A Review of Methods and Results.Inquiry : a journal of medical care organization, provision and financingReview
Corrections and comments
PubMed lists nothing against this paper. Absence here is not a guarantee, only a check that was made.
Authors and funding
6 authors.
Funding
No grant is acknowledged in the PubMed record.
Abstract
The opportunity cost of the capital invested in pharmaceutical research and development (R&D) to bring a new drug to market makes up as much as half the total cost. However, the literature on the cost of pharmaceutical R&D is mixed on how, exactly, one should calculate this "hidden" cost. Some authors attempt to adopt models from the field of finance, whereas other prominent authors dismiss this practice as biased, arguing that it artificially inflates the R&D cost to justify higher prices for pharmaceuticals. In this article, we examine the arguments made by both sides of the debate and then explain the cost of capital concept and describe in detail how this value is calculated. Given the significant contribution of the cost of capital to the overall cost of new drug R&D, a clear understanding of the concept is critical for policy makers, investors, and those involved directly in the R&D.
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Registered trials
Read under generation 80e0d062 · epoch 390. Bibliography from PubMed, PubMed Central and OpenAlex; grants from NIH RePORTER; trial links from ClinicalTrials.gov; estimates, votes and beliefs from the OpenQuestion graph.