Failed clinical trials can cost biotechnology companies tens of millions of dollars and may impair seriously the survivability of a development stage company. These are good reasons to examine the causes of clinical trial failures in the hope of learning from the experience.
The biotechnology sector can provide markedly above average rates of return for investors with a tolerance for risk, an interest in the frontiers of science, and the willingness to support invention at its earliest and most creative.
We naturally expect the rate of successful drug development programs to increase with increasing experience and greater resources. Recent data from the FDA have challenged that expectation.
Market behavior is more often a subject of belief than of clear fact. Surveys have demonstrated that there is significant physician sensitivity to drug pricing when there are therapeutic alternatives.