[s1artibartfast]

>The R&D funding came from the previous drug, not the current drug.

In practice, yes that is often the case, but it doesn't matter for the new drug development decision.

If a new drug is unprofitable, it doesnt matter if there are funds from a prior one. A company will invest it elsewhere instead of spending it on a revenue negative drug.

Similarly, If a new drug looks profitable but internal funds are scarce, the Company will secure funding or sell distribution rights to raise the funds.

The Key role that the US is currently playing to making drugs profitable to develop that otherwise would not be.

I have worked on several programs, and the question is always "what is the return on investment" and never "how much do we have in the bank".

[robertlagrant]

Understood, but I wasn't saying anything different.