Drug development is costly Hard to find a promising chemical in the first place Only 21.5%of drugs that enter Phase I pass to Phase Ill The whole process can cost $500 million or more to bring a drug to the point of approval Bhattacharya,Hyde and Tu-HealthEconomicsBhattacharya, Hyde and Tu – Health Economics Drug development is costly  Hard to find a promising chemical in the first place Only 21.5% of drugs that enter Phase I pass to Phase III  The whole process can cost $500 million or more to bring a drug to the point of approval