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. 1998 Fall;20(1):83–126.

Figure 18. New Drugs Brought to Market: Calendar Years 1990-97.

Figure 18

Costly new drugs continue to flood the market.

  • The Food and Drug Administration (FDA) is speeding new drugs into the marketplace at a record pace. The FDA approved 39 new drugs in 1997, second only to the 53 new drugs introduced in 1996. FDA approval times were also down, falling from 20.5 months in 1996 to 17 months in 1997 (Gebhart, 1998).
  • New drugs are typically introduced at higher prices than existing drugs. Although utilization of new drugs released after 1992 represented only 16.8 percent of total 1997 utilization, they accounted for 30.6 percent of total 1997 costs (Express Scripts Online, 1998), reflecting the higher prices that tend to be charged for new drug products.