Drug Research
Profiting from Pain: Where Prescription Drugs Dollars Go – (09-12-02)
Profiting from Pain: Where Prescription Drugs Dollars Go
While this is a very long report, I can summarize it for you. Contrary to popular belief, most of pharmaceutical companies’ budgets do not go towards research and development. Rather, advertising and marketing account for 1.5 to 2x the costs of R and D. Not to mention the salaries of the CEOs. The amount of money that the drug companies spend in advertising is staggering and is in the billions of dollars PER MONTH. Their profitability has never been in question. Unfortunately, many patients consider the cost of drugs as an inelastic demand and the marketplace will probably never allow for the cost to come down–the insurance companies and the drug companies have ties that are too strong. If you have time, read the article; it is very eye-opening.
