ADM 2303-Clinical testing of chemical compounds for approval

Clinical testing of chemical compounds for approval as drugs goes through 3 successive stages:-phase 1: testing on about 50 healthy individuals to investigate possible side effects. 70% of compounds pass Phase 1. Cost $7.3m per compound-phase 2: testing on about 200 patients to investigate effectiveness in curing illness. 43% of compounds pass phase 2. Cost $18.9m per compound-phase 3: testing on about 3000 patients to investigate effectiveness in curing illness. 67% of compounds pass phase 3. Cost $43.3m per compoundStarting with 5 chemical compounds, what is the expected cost of clinical testing to produce one drug, including the cost of testing unsuccessful compounds.

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