True or False

While generics account for more than three quarters of all prescription drugs sales by volume, they account for only 10% of all prescription sales revenues.

It was not until after World War II, that it became clear that control over drug safety mechanisms should rest with governmental agencies rather than with an industry watchdog group.

The average percentage of revenues spent on R&D by pharmaceutical companies in the U.S. has been stable for the past three decades at about 17%.

One of the most widely used estimates of the average cost of developing a new drug has been at about $80 million (in 2000 dollars).

Economies of scale are a common feature of R&D in the pharmaceutical industry.

Phase I of FDA testing involves human testing for efficacy of an Investigational New Drug (IND).

Once a firm has isolated and tested a drug on animals, it files a New Drug Application (NDA) with the FDA. Then, three phases of testing take place over a period of several years.

On average, R&G expenses consume a larger share of pharmaceutical funds than marketing and administrative costs