Costs of Clinical Trials for the FDA Are Substantial

From: C
Sent: Tuesday, October 30, 2018 9:41 AM
To: wblock@loyno.edu
Subject: Publication correspondence

Dr. Block,

I am an instructor at the University of XYZ. I teach our ethics and law class on health care (the school doesn’t know that they’ve let a libertarian teach about health care). I am working on writing up some lecture content regarding the costs of health care and came across your published work on the economics of pharmaceuticals:

Romanach, John and Walter E. Block. 2017. “Medical Economics: End the FDA.” The Winners; Binus University Journal. Vol 18, No 1, pp. 43-48;

http://journal.binus.ac.id/index.php/winners/issue/view/222/showToc; DOI: http://dx.doi.org/10.21512/tw.v18i1.4052

http://journal.binus.ac.id/index.php/winners/issue/view/222/showToc

I noted this statement, “Studies indicate that the need to conduct these various stages of clinical trials adds almost 40% to the cost of R&D for a new drug. Such a dramatic increase in the cost to supply drugs will undoubtedly raise the price paid by consumers.” Could you possibly point me in the direction of these studies?

Thank you for your assistance, C

Fidem – Caritas – Fortitudo

Dear C:

I’m glad you benefitted from your perusal of that article of mine. See below some estimates of such costs. It is a sad day when you have to stay in the “closet” but I honor you for so doing.

https://www.google.com/search?rlz=1C2CHBF_enUS724US724&source=hp&ei=mAm6XPndEoe50PEPyvWa0Ag&q=clinical+trials+costs+for+fda+approval&oq=clinical+trials+costs+for+fda&gs_l=psy-ab.1.0.33i22i29i30l7.2318.10093..17157…0.0..0.333.1342.10j3j0j1……0….2j1..gws-wiz…..0..0j0i22i30j0i22i10i30.tbauIXeG_lw

https://www.google.com/search?rlz=1C2CHBF_enUS724US724&ei=qQm6XNz8Np2-0PEPk_6w2Ak&q=clinical+trials+costs+for+fda&oq=clinical+trials+costs+for+fda&gs_l=psy-ab.3…7848.7848..9118…0.0..0.90.90.1……0….1..gws-wiz…….0i71.lUovzBh9qTw

https://www.google.com/search?rlz=1C2CHBF_enUS724US724&ei=qQm6XNz8Np2-0PEPk_6w2Ak&q=clinical+trials+costs+for+fda+&oq=clinical+trials+costs+for+fda+&gs_l=psy-ab.3..33i22i29i30l6.5916.5916..11845…0.0..0.92.92.1……0….1..gws-wiz…….0i71.sHdhM1E3KI8

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2:39 pm on April 19, 2019