1. The Cost of Living Stephen Hall

2. Pharmaceutical Sales (Billions)

3. Projected Growth Rates

4. QALY F = Probability of being alive at age i Q = Quality (0 = dead, 1 = perfect health) D = Discount rate

6. Lung Cancer Chemotherapy Increases lifespan, on average, 2 months Treatment cost = $40,000 Every additional year costs $360,000

7. Zaltrap Fights colon cancer Increases lifespan, on average, 42 days Cost per year of life gained: $303,000 This only accounts for the drug itself, no other expenses such as hospital, physician fees, etc Real price > $600,000

8. Tremendous costs, low ROI 5 year survival rate for cancer is 63% Cancer drugs responsible for 2%

9. Why are costs so high? People would rather not die (duh) Oncologists derive half their income from sales and administration of treatment New study states that the release of a new drug costs $2.6 billion (This result has been contested, values range from $500 million to $5 billion)