• About
  • Masthead
  • License Content
  • Advertise
  • Submit Press Release
  • RSS/Email List
  • 2MM Podcast
  • Write for us
  • Contact Us
2 Minute Medicine
No Result
View All Result

No products in the cart.

SUBSCRIBE
  • About
  • Specialties
    • All Specialties, All Recent Reports
    • Cardiology
    • Chronic Disease
    • Dermatology
    • Emergency
    • Endocrinology
    • Gastroenterology
    • Imaging and Intervention
    • Infectious Disease
    • Nephrology
    • Neurology
    • Obstetrics
    • Oncology
    • Ophthalmology
    • Pediatrics
    • Pharma
    • Preclinical
    • Psychiatry
    • Public Health
    • Pulmonology
    • Rheumatology
    • Surgery
  • Tools+
    • EvidencePulse™
    • HypeCheck™
    • NPI Registry Lookup
    • RVU Search
  • Pharma
  • AI Roundup
  • The Scan+
  • Classics™+
    • 2MM+ Online Access
    • Paperback and Ebook
  • Rewinds
  • Partners
    • License Content
    • Submit Press Release
    • Advertise with Us
  • Account
    • Subscribe
    • My account
    • Cart
    • Sign in
2 Minute Medicine
  • About
  • Specialties
    • All Specialties, All Recent Reports
    • Cardiology
    • Chronic Disease
    • Dermatology
    • Emergency
    • Endocrinology
    • Gastroenterology
    • Imaging and Intervention
    • Infectious Disease
    • Nephrology
    • Neurology
    • Obstetrics
    • Oncology
    • Ophthalmology
    • Pediatrics
    • Pharma
    • Preclinical
    • Psychiatry
    • Public Health
    • Pulmonology
    • Rheumatology
    • Surgery
  • Tools+
    • EvidencePulse™
    • HypeCheck™
    • NPI Registry Lookup
    • RVU Search
  • Pharma
  • AI Roundup
  • The Scan+
  • Classics™+
    • 2MM+ Online Access
    • Paperback and Ebook
  • Rewinds
  • Partners
    • License Content
    • Submit Press Release
    • Advertise with Us
  • Account
    • Subscribe
    • My account
    • Cart
    • Sign in
SUBSCRIBE
2 Minute Medicine
Subscribe
EvidencePulse™ by 2 Minute Medicine 2026 evidence scan 3 reports You asked top stroke trials 2026 Synthesizing medical evidence... Top 2026 stroke trial results: OCEANIC — ischemic stroke: 6.2% vs 8.4% OPTION* — mRS 0–1: 43.6% vs 34.2% ORIENTAL* — mRS 0–2: 58.6% vs 46.6% *Higher sICH in intervention arms Participants randomizedN OCEANIC 12,327 OPTION 570 ORIENTAL 564 Ask about guidelines or landmark trials... ↑ Try EvidencePulse™ Ask the evidence.
Get the signal.
Try it now → Physician-trained medical AI by 2 Minute Medicine
Home All Specialties Chronic Disease

Estimated costs of clinical trials for FDA approval of novel therapeutics

byJames EnglandandAnees Daud
September 28, 2018
in Chronic Disease, Public Health
Reading Time: 3 mins read
Rapid growth of medical artificial intelligence technology usage identified from insurance claims analysis, yet major barriers to widespread adoption remain
Share on FacebookShare on Twitter

1. In this evaluation of clinical trial cost of newly FDA-approved therapeutics, trials without control arms and with small numbers of patients had the lowest estimated cost. Trials comparing a novel agent to a therapy with proven clinical benefit using a noninferiority design had the highest associated costs.

2. Pivotal clinical trial cost represents a relative small proportion of drug development cost, especially for first-in-class therapies for rare disorders.

Evidence Rating Level: 3 (Average)      

Study Rundown: Clinical trials are the benchmark standard for the approval of novel therapeutics by the United States Food and Drug Administration. In the modern era, certain drugs can obtain approval without the same traditional standard of multiple control trials with hard clinical benefits. The impact of these changes to the estimated cost of novel therapeutics is not known, with many pharmaceutical companies not disclosing costs of running these trials. This study sought to evaluate the costs for modern pivotal clinical trials that lead to approval of medications by the FDA. The study found that pivotal trials, which led to drug approval, had a median cost of $19.0 million (interquartile range, $12.2 million-$33.1 million). This was significantly less than the estimated total cost of drug development. Trials for “breakthrough” drugs without control arms and those consisting of small numbers of patients with rare disorders had low costs. Trials comparing a novel agent to a drug with established clinical benefit had the highest estimated costs.

The study highlights the relative low cost of trials for rare disorders which do not require control arms or hard clinical outcomes for approval. The main strength of the study was the use of estimation software that used benchmark data from modern trials performed in many countries. The limitations of the study included the reliance on estimations rather than true cost of trials, and the lack of insight into the total number of trials required prior to the pivotal trials that led to FDA approval.

Click to read the study in JAMA Internal Medicine

RELATED REPORTS

FDA warns Novo Nordisk over safety reporting violations

2 Minute Medicine: Pharma Roundup – Pfizer’s Talzenna delays prostate cancer progression, apixaban lowers VTE bleeding risk, Lilly’s retatrutide hits Phase III metabolic targets, and FDA warns Novo Nordisk over safety reporting violations [March 2026]

FDA grants priority review for iberdomide-based myeloma regimen

Relevant Reading: Research and Development Spending to Bring a Single Cancer Drug to Market and Revenues After Approval

In-Depth [retrospective cohort]: This study evaluated novel therapeutics that were approved by the FDA in 2015-2016 as reported in the Centre for Drug Evaluation and Research annual summary reports. Drugs were excluded if they were new formulations of previously approved drugs or did not have pivotal human trials. Estimation of clinical trial cost was obtained using proprietary software designed to support contract research organizations (CROs) and pharmaceutical sponsors in designing and evaluating contract proposals. The software was developed using final awarded proposals and clinical site contracts from the previous 2 years.

During the study period 59 new drugs were approved by the FDA, with only 27.1% approved based on traditional criteria of two or more trials with clinical endpoints. Of the 138 pivotal trials included in the study the median estimated cost was $19.0 million (interquartile range, $12.2 million-$33.1 million). Three trials of orphan drugs with no control arms and less than 15 patients cost less than $5 million. The most expensive trial was $346.8 million (95%CI, $252.0 million-$441.5 million) for a non-inferiority trial comparing a novel agent to one with established clinical benefit. Uncontrolled trials had an estimated cost of $13.5 million (95%CI, $10.1 million-$16.9 million); controlled trials had a cost of $35.1 million (95%CI, $25.4 million-$44.8 million).

Image: PD

©2018 2 Minute Medicine, Inc. All rights reserved. No works may be reproduced without expressed written consent from 2 Minute Medicine, Inc. Inquire about licensing here. No article should be construed as medical advice and is not intended as such by the authors or by 2 Minute Medicine, Inc.

Tags: FDA
Previous Post

Current guidelines may not provide adequate instruction for prescribing anticoagulation in patients with atrial fibrillation

Next Post

Atorvastatin loading before percutaneous coronary intervention improves outcomes in patients with acute coronary syndrome

RelatedReports

Variation noted across pre- and post-marketing studies for FDA approved devices
Pharma

FDA warns Novo Nordisk over safety reporting violations

April 6, 2026
2 Minute Medicine: Pharma Roundup: Price Hikes, Breakthrough Approvals, Legal Showdowns, Biotech Expansion, and Europe’s Pricing Debate [May 12nd, 2025]
Endocrinology

2 Minute Medicine: Pharma Roundup – Pfizer’s Talzenna delays prostate cancer progression, apixaban lowers VTE bleeding risk, Lilly’s retatrutide hits Phase III metabolic targets, and FDA warns Novo Nordisk over safety reporting violations [March 2026]

March 30, 2026
Variation noted across pre- and post-marketing studies for FDA approved devices
Hematology

FDA grants priority review for iberdomide-based myeloma regimen

March 6, 2026
2 Minute Medicine AI Roundup editorial illustration
Orthopedic Surgery

FDA clears Medtronic stealth AXiS AI-Robotic spine system

September 4, 2026
Next Post
Appropriate use criteria for angiography may frequently miss obstructive coronary artery disease

Atorvastatin loading before percutaneous coronary intervention improves outcomes in patients with acute coronary syndrome

Study shows poor follow up of children with high blood pressure

Southern diet may be largest factor leading to higher rates of hypertension in US black populations

Off-label use of prescription drugs associated with adverse drug events

2 Minute Medicine Rewind October 1, 2018

EvidencePulse™ by 2 Minute Medicine 2026 evidence scan 3 reports You asked top stroke trials 2026 Synthesizing medical evidence... Top 2026 stroke trial results: OCEANIC — ischemic stroke: 6.2% vs 8.4% OPTION* — mRS 0–1: 43.6% vs 34.2% ORIENTAL* — mRS 0–2: 58.6% vs 46.6% *Higher sICH in intervention arms Participants randomizedN OCEANIC 12,327 OPTION 570 ORIENTAL 564 Ask about guidelines or landmark trials... ↑ Try EvidencePulse™ Get the signal. Try it now → Physician-trained medical AI by 2 Minute Medicine

2MM+ All Access

Full details →
$4.99 /month

3-day free trial · cancel anytime

  • ✓100+ physician-written reports
  • ✓EvidencePulse™ + HypeCheck™
  • ✓Ad-free reading + newsletters
Start 3-day free trial

Then $4.99/month. Manage renewal in your account.

2 Minute Medicine® is an award winning, physician-run, expert medical media company. Our content is curated, written and edited by practicing health professionals who have clinical and scientific expertise in their field of reporting. Our editorial management team is comprised of highly-trained MD physicians. Join numerous brands, companies, and hospitals who trust our licensed content.

Recent Reports

  • Artificial intelligence (AI)-triggered rapid response notifications were associated with lower mortality among inpatients
  • Post-traumatic stress disorder is associated with increased risk of mild cognitive impairment and dementia among United States Veterans
  • A long-term gonadotropin-releasing hormone agonist protocol may be associated with increased positive pregnancy outcomes in women with endometriosis undergoing frozen embryo transfer
License Content
Terms of Use | Disclaimer
Cookie Policy
2MM+ All Access Full details →

The medical literature, distilled daily.

Monthly plan selected: $4.99 /month.

$4.99/month

3-day free trial · cancel anytime

Start 3-day free trial

Then $4.99/month. Manage renewal in your account.

Yearly plan selected: $49.90 /year.

$49.90/year

2 months free

Start 3-day free trial

Then $49.90/year.

Membership benefits

  • ✓100+ physician-written reports
  • ✓AI EvidencePulse™ + HypeCheck™
  • ✓Ad-free reading + newsletters

Already a member? Sign in

  • About
  • Specialties
    • All Specialties, All Recent Reports
    • Cardiology
    • Chronic Disease
    • Dermatology
    • Emergency
    • Endocrinology
    • Gastroenterology
    • Imaging and Intervention
    • Infectious Disease
    • Nephrology
    • Neurology
    • Obstetrics
    • Oncology
    • Ophthalmology
    • Pediatrics
    • Pharma
    • Preclinical
    • Psychiatry
    • Public Health
    • Pulmonology
    • Rheumatology
    • Surgery
  • Tools
    • EvidencePulse™
    • HypeCheck™
    • NPI Registry Lookup
    • RVU Search
  • Pharma
  • AI Roundup
  • The Scan
  • Classics™
    • 2MM+ Online Access
    • Paperback and Ebook
  • Rewinds
  • Partners
    • License Content
    • Submit Press Release
    • Advertise with Us
  • Account
    • Subscribe
    • My account
    • Cart
    • Sign in
No Result
View All Result

© 2026 2 Minute Medicine, Inc. - Physician-written medical news.