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Unformatted text preview: There are several cost drivers that are impacting key areas of R&D. One cost driver is longer R&D timelines; another is an increase in the rate of attrition for new drugs and another cost driver could be the increase in the cost of key R&D components. Another factor to consider is the cost of a new drug. Different estimates are not surprising given the complexity of variables required to arrive at such cost estimates: therapeutic area variable costs, cost per patient and follow ups. All these estimates take into account cost incurred before earning any returns. Overall, this industry is considered a billion dollar business and there are many outlaying factors that will definitely affect the Activity Based Costing....
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- Summer '11
- Accounting, Session Long Project, DR. WENDY ACHILLIES, Accentia Biopharmaceuticals