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The Economics of Male Birth Control


Stashed in: Business Facts, Sexy!, Freakonomics

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Summarize for me: Are the economics good?

Not really:

Nowadays, male contraceptive research is being held back on the supply side, not the demand side. According to Lissner, there is comparatively little commercial incentive to develop a new contraception product at all. 

First of all, the market isn’t big enough, by pharmaceutical and healthcare standards: $4 billion nationwide. Contraceptive products take a particularly long time to develop and test, which increases the risk of an investment. “$4 billion may sound like a lot,” says Gary Gamerman, a former consultant to Lissner’s foundation and vice president of Afaxys, Inc., “but when you divide it out among a lot of different products, and take the time and effort to develop and test a completely new product, or just an improvement, you could easily spend $20-$50 million. To launch it you’re going to spend another $30-40 million in marketing. And the whole thing will take 5 years at the very minimum.”

You're right, those economics stink. Look elsewhere for business ideas. :)

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