4 ms·
Right, but there is a free rider problem. Why should a company spend $100 million doing clinical trials to get FDA approval if once it is approved, all other co
by jaredklewis 2y ago
Right, but there is a free rider problem. Why should a company spend $100 million doing clinical trials to get FDA approval if once it is approved, all other companies can sell it, even though they didn't pay anything? Even if every actor in the market thinks there will be a good return on investment if they get FDA approval, there is a strong incentive to instead wait for someone else to do it and free ride on them. The result is no one acts.
Clinical trials are a significant expense in developing a drug. Kind of makes me think we should award patents not for coming up with some molecule, but instead award them for showing a molecule is safe and effective.
- catigula 2y agoCBD, which doesn't appear to have a fraction of the therapeutic efficacy of something like Ozempic, is a multi-hundred billion dollar industry now with a lot of active research.
- jaredklewis 2y agoDo you have a source for that? Everything I can find online puts global CBD industry revenue at less than $10 billion. And that's everything. The only FDA approved use of CBD (treating seizures), I'm sure is only a tiny fraction of that. In any case, none of that refutes that there is a strong economic incentive for market actors to not fund FDA approval trials since any benefit will be shared by the entire market.