The pharmaceutical industry’s willingness-to-sell targeted chemotherapy for incurable solid cancers

• Author / Creator

  Conter, Henry J

• How the costs of research and its associated risks contribute to a minimum price that would support continued private pharmaceutical investment is unclear.
  We employed a linear cost-volume-revenue breakeven analysis to equate initial capital investment and risk, and its associated post-drug-approval revenue. A decision-tree analytic model was utilized to define the relationships between investment events, outcomes, and risk. A systematic review was employed to determine the model inputs.
  In oncology, the minimum revenue required to support R&D is $4.34 billion USD to $5.21 billion USD. The strategy undertaken to develop a new drug can reduce the associated revenue to $2.77 - $3.49 billion USD. Utilizing multi-tumour phase I clinical trials may allow for $853 million USD to $983 million USD in additional reductions.
  The minimum required return on investment varies with estimates for cost of capital and the approach a firm uses when developing novel therapeutics.

• Subjects / Keywords

  • Systematic reviews
  • Health finance
  • Medical oncology
  • Industry
  • Pharmacoeconomics
  • Targeted therapy

• Graduation date

  Spring 2013

• Type of Item

  Thesis

• Degree

  Master of Science

• DOI

  https://doi.org/10.7939/R3834W

• License

  This thesis is made available by the University of Alberta Libraries with permission of the copyright owner solely for non-commercial purposes. This thesis, or any portion thereof, may not otherwise be copied or reproduced without the written consent of the copyright owner, except to the extent permitted by Canadian copyright law.