FDA Hedges: A Proposal to Better Share R&D Risks
By Zachary Brennan -
Published 19 April 2017
The probability that an investigational drug will succeed in all three phases of clinical trials and win US Food and Drug Administration (FDA) approval is very low. So low, in fact, that a group of economists have written a new paper calling for a system whereby developers could hedge their research and development (R&D) risks by buying options that would pay companies a pre-specified amount in the event that a treatment fails a given phase of the FDA approval process.
Categories: News, US, FDA, Biologics and biotechnology, Business and Leadership, Drugs, Ethics
Tags: R&D risk, pharmaceutical risks, FDA hedges