On Average, It Can Cost _______ and Take _______ to Discover

question 26

Multiple Choice

On average, it can cost _______ and take _______ to discover a new drug, perform the necessary safety tests, and bring the drug to market.

• A) $500 million; five years
• B) $100 million; a year
• C) $800 million; more than a decade
• D) $300 million; less than a decade

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Definitions:

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Investing Activities

Transactions involving the acquisition or disposal of long-term assets and other investments not considered as cash equivalents by a company.

Net Book Value

The current book value of an asset or company after accounting for depreciation or amortization.

Cash Flow

The net amount of cash being transferred in and out of a business, representing the company's operational, investing, and financing activities.