Eroom's law: $1B of R&D once yielded ~50 new drugs, now it yields about one

sebkrier · x · 2026-11-14

A new HARD DRUGS episode with Salonium asks whether Eroom's law (Moore spelled backwards) will crush AI-accelerated progress: in the 1950s, $1B of R&D produced roughly 50 new drugs; today it yields about one. Inflation-adjusted R&D cost per new drug has roughly doubled every nine years.

Possible explanations discussed: rising evidence standards and safety-testing requirements via regulation and risk aversion; low-hanging fruit already picked, leaving harder diseases. The episode examines what this means for the "AI will fix drug development" narrative.

Related event: Podcast Asks Whether AI Can Reverse Eroom's Law in Drug R&D(2 posts)→

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