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# Cancer R&D Study Draws Advocate Fire
- URL: https://www.fdaweb.com/cancer-r-d-study-draws-advocate-fire/
- Published: 2017-09-13T12:00:00.000Z
- Updated: 2026-09-14T22:49:28.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5139624

Representatives of Pharmaceutical Research and Manufacturers of America (PhRMA) and the Biotechnology Innovation Organization (BIO) are attacking as inaccurate a [study](http://jamanetwork.com/journals/jamainternalmedicine/fullarticle/2653012?ref=fdaweb.com) published in *JAMA Internal Medicine* on the research and development cost of bringing a new cancer drug to market, and revenues after approval. The researchers from a number of cancer centers and universities peg the cost to develop a cancer drug at $648 million, a figure that is significantly lower than previous estimates that ranged to $2.7 billion. They say the revenue following approval can be substantial, ranging from $204 million to $22,275 million. The researchers reached their conclusions by analyzing Securities and Exchange Commission filings for companies involved with 10 cancer drugs.

A PhRMA [response](http://catalyst.phrma.org/what-they-are-saying-study-on-cancer-rd-costs-is-not-an-accurate-representation-of-marketplace?ref=fdaweb.com) says the study “provides flawed and inaccurate estimates of the significant research and development investments made by biopharmaceutical companies to develop new cancer treatments and cures for patients. The study focuses on a selective sample of companies that have been successful, ignores significant investments in early stage R&D, and relies on inaccurate assumptions regarding industry revenue.”

And BIO [says](http://www.biotech-now.org/health/2017/09/jama-study-misses-the-mark-on-cancer-rd-costs-profitability?utm%5Fsource=feedly&utm%5Fmedium=rss&utm%5Fcampaign=jama-study-misses-the-mark-on-cancer-rd-costs-profitability) that “the vast majority—95%—of potential new cancer drug programs that enter clinical trials end up failing. By only looking at the ‘winners’ of biotech companies developing cancer drugs, the study ignores the great risk and uncertainty that investors face in funding such research, who don’t have the benefit of knowing in advance which companies will eventually obtain an FDA approval. Many small companies that work in oncology never obtain FDA approval, but the billions they spend on R&D provides valuable input to the development programs of other companies that eventually make it.”