The life cycle of a drug Find chemical compound that might treat a disease Then,test it on animals to show it is not toxic Then,test on humans in three phases Phase 1:low dose to healthy individuals(-2 years) Phase 2:dose to unhealthy individuals(-2 years) Phase 3:test effectiveness in preventing disease or medical conditions(~-3-4 years) Get approved for sale by FDA or similar body Bhattacharya,Hyde and Tu-HealthEconomics Bhattacharya, Hyde and Tu – Health Economics The life cycle of a drug  Find chemical compound that might treat a disease  Then, test it on animals to show it is not toxic  Then, test on humans in three phases  Phase 1: low dose to healthy individuals (~2 years)  Phase 2: dose to unhealthy individuals (~2 years)  Phase 3: test effectiveness in preventing disease or medical conditions(~3-4 years)  Get approved for sale by FDA or similar body