Answer Happy

Assume a company develops five compounds and files an Investigational New Drug application (IND) for each. One drug dies at the end of phase I, two drugs die at the end of phase II, and one drug dies at the end of phase III. The fifth drug reaches the market. If a drug costs $1.2 billion to reach the market, use the pie chart below to determine the cost of development for the four drugs that failed to complete clinical trials. Assume the "other" and "approval" costs are a factor only for the fifth drug (post-phase III costs). What are the total costs, in billions of dollars, of development for all five drug candidates? These are the losses that must be offset by the sales of the fifth drug. (numerical answer only, no units needed) Answer: 13% 9% 9% 26% 26% 7% 10% Prehuman Phase I Phase II Phase III Approval Phase IV Other