Eroom's Law is Moore's Law spelled backwards. It's the bitter name in the pharma industry for the fact that R&D costs per drug have been steadily rising since the 1950's.
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The famous Nature review article "Diagnosing the decline in pharmaceutical R&D efficiency" offers a model as to why. http://lukemuehlhauser.com/wp-content/uploads/Scannell-Diagnosing-hte-decline-in-pharmaceutical-RD-efficiency.pdf …
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Drug development is a series of experimental filters (the pipeline) that narrow down a huge collection of potential molecules to the few that actually can be used to treat a disease.
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Target discovery, target validation, screening compounds against targets to get hits, in-vitro assays of hit compounds to select leads, lead optimization, preclinical (mouse) studies, and clinical (human) trials. 7 steps, more or less.
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