Competition in the Pharmaceutical Industry: The Declining Profitability of Drug Innovation

Meir Statman

in Books from American Enterprise Institute

Abstract: In the early part of the period 1954–1978, the rate of return on drugs was nearly double the cost of capital, but at the end of the period the return declined to the cost of capital or below. The author traces the causes of this decline in the profitability of drug innovation.

Keywords: pharmaceuticals; drug policy; R&D; AEI Press; drug industry (search for similar items in EconPapers)
JEL-codes: A (search for similar items in EconPapers)
Date: 1983
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Persistent link: https://EconPapers.repec.org/RePEc:aei:rpbook:920795

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