The risk of innovation: measuring drug clinical development in Brazil

Michele De Medeiros Rocha, Danilo Garbazza Vieira, Gilson Brito Alves Lima, Emmanuel Paiva De Andrade and Osvaldo Luis Gonçalves Quelhas

International Journal of Business Innovation and Research, 2018, vol. 17, issue 1, 128-145

Abstract: Although risk is inherent in innovation, the pharmaceutical sector still leads research and development (R%D) investments. Therefore, the awareness of potential risks is especially important for this sector that spends approximately 70% of the total cost of new drug development on clinical trials. The economic crisis in Europe and its reimbursement system has made emerging countries, like Brazil, potential strategic markets for the return of these high investments. Using a public database (ClinicalTrials.gov), this study estimated the probabilities of failure and success of clinical trials in Brazil up to approval by the regulatory authority. The results showed the risk in conducting phase 3 clinical trials, the most extensive and complex phase, is considered high (26.7%). On the other hand, regulatory approval represents a high success rate, since over 90% of the drugs with positive results in phase 3 were approved by the Brazilian Agency.

Keywords: risk; innovation; pharmaceuticals; drug development; clinical trials; Brazil. (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijbire:v:17:y:2018:i:1:p:128-145

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