The offset effect of pharmaceutical innovation: A review study

Abstract

PI implies a complex scientific and technological process associated with long research periods and high financial investment. It is estimated that developing a new molecule may cost up to USD 2700 million and take up to 15 years of research. 2 Nevertheless, despite the cost that PI may represent to healthcare systems, an offset effect is often produced on other costs, which may lead to significant global savings in the total costs associated with the new drug's introduction to the market.Hence, beyond their clinical impact, drugs often have additional benefits on the healthcare system and society in general. Indeed, by preventing or treating more effectively different illnesses, PI, as many healthcare interventions, may reduce several direct and indirect costs associated with the disease and therefore become a very useful tool for optimal resource utilization. 3 In the health economics literature, direct costs refer to both direct healthcare costs (DHC) and direct nonhealthcare costs (DNHC). The former refers to the use of resources that is strictly related to illness management,