Specialty drugs tend to cost significantly more than conventional drugs, ranging from $6,000 – $750,000 per year. Many factors determine the cost. The research and development is often long, complex and expensive, with average costs for each new drug at approximately $1.2 million. Once developed, they may require special processes to handle, store and distrubute.
In many cases, specialty drugs are tailored to a smaller population of patients and involve more individualized use based on patient-specific genetic-level differences. For example, for less common diseases like Hemophilia, only a small number of people need the specialty drug used for treatment. This means that the cost of the drug must be spread out over fewer users, making the cost per individual much higher.