5 ms·
Mostly profit to pay back the investors for billions of dollars in research and development, and baked in liability insurance. Some of it also goes to pay for
by blisterpeanuts 10y ago
Mostly profit to pay back the investors for billions of dollars in research and development, and baked in liability insurance.
Some of it also goes to pay for the R&D of other drugs that never make it to market.
- omegaworks 10y agoThis is propaganda. Spending on research and development at private pharmaceutical companies is dramatically eclipsed by marketing and sales spend. https://www.google.com/amp/s/www.washingtonpost.com/amphtml/news/wonk/wp/2015/02/11/big-pharmaceutical-companies-are-spending-far-more-on-marketing-than-research/?client=safari https://www.google.com/amp/s/www.washingtonpost.com/amphtml/...
- refurb 10y agoYes, but sales and marketing has a positive ROI. If you spend $100M on sales and marketing, you'll get $150M back (for example). Otherwise, why would you do it? So if pharma companies cut out all of their sales and marketing, they'd have even less revenue than they do today. And that would lower R&D spend.
- woofyman 10y agoWhy do drugs need marketing?
- tracker1 10y agoThis... I feel that we (US) should go back a bit on this, and restrict all advertising not in specific magazines/journals that target doctors, and restrict office visits of pharma reps to dr offices.
- ZeroFries 10y agoWhy does anything need marketing?
- refurb 10y agoBecause it's one of the key ways that physicians get new information about drugs. Not every doctor has the time or the proclivity to do research on every newly launched drug. Having a rep come in and answer questions goes a long way to getting doctors up to speed on the latest information.