The costs of developing the types of new drugs that have been pursued by traditional pharmaceutical firms have been estimated in a number of studies. However, similar analyses have not been published on the costs of developing the types of molecules on which biotech firms have focused. This...

The three papers by Scherer (2007), Berndt et al. (2007), and Reiffen and Ward (2007) in this issue cover disparate topics, but together they manage to encompass much of what is important during a drug's lifecycle. Scherer's paper examines pharmaceutical industry R&D productivity and efficacy...

In this paper we examine generic competition and market exclusivity periods for pharmaceuticals experiencing their initial generic entry between 1995 and 2005. We find that generic competition has increased over several dimensions. First, an increasing number of drugs are subject to generic...

Patents for several blockbuster biological products are expected to expire soon. The Food and Drug Administration is examining whether biologics can and should be treated like pharmaceuticals with regard to generics. In contrast with pharmaceuticals, which are manufactured through chemical...