4. A blockbuster drug is defined as a drug that generates USSI billion in annual sales. Assume Drug X has 12 years of market exclusivity and has $1 billion in sales for each of those 12 years. Using the guidelines in question 3, over 12 years, how many drugs that fail after phase I would be offset by sales of Drug X? How many drugs that fail after phase III would be offset by sales of Drug X? Assume the profit margin for drugs is 20%, that is, $1 billion in sales equals $200 million in profit. end of phase II. The fifth drug reaches the market. If a drug costs US$800 million to reach the market, use the pie chart in Figure 2.16 to determine the cost of develop- ment for the four drugs that failed to complete clinical tri- als. Assume the "other" and "approval" costs are a factor only for the fifth drug (post-phase III costs). What are the These are the losses that must be offset by the sales of the fifth drug. total costs of development for all five drug candidates? Du that generates USA 4. A blockbuster drug is defined as a drug that generates USSI billion in annual sales. Assume Drug X has 12 years of market exclusivity and has $1 billion in sales for each of those 12 years. Using the guidelines in question 3, over 12 years, how many drugs that fail after phase I would be offset by sales of Drug X? How many drugs that fail after phase III would be offset by sales of Drug X? Assume the profit margin for drugs is 20%, that is, $1 billion in sales equals $200 million in profit. end of phase II. The fifth drug reaches the market. If a drug costs US$800 million to reach the market, use the pie chart in Figure 2.16 to determine the cost of develop- ment for the four drugs that failed to complete clinical tri- als. Assume the "other" and "approval" costs are a factor only for the fifth drug (post-phase III costs). What are the These are the losses that must be offset by the sales of the fifth drug. total costs of development for all five drug candidates? Du that generates USA