Cost of Delay

What does moving the launch a month cost?

Cost of delay is the metric that makes launch prioritisation concrete. The standard formula: Total cost of delay = lost month costs + peak reduction cost. LEA includes this model as an online dashboard on your own forecast; the calculator below is a simplified illustration.

Total cost of delay

$579M

Lost month costs

$83M

Peak reduction cost

$496M

Per month of delay: $579M. Lost months are taken at peak because loss of exclusivity does not move; the peak reduction applies to every remaining year.

Revenue curve · on time vs. delayed

On timeDelayedYears to LoE
“Every day of launch delay costs roughly half a million dollars in lost sales.”

Tufts CSDD, Getz et al., 2024 (645 drugs)

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Discuss your launch assumptions.

We can run this model on your own forecast inside LEA.

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