3 ms·
Nope. Development costs $1B+ by itself, as you can see from my source or your link. Marketing spend is on top of the R&D cost. I agree that we should limit dru
by allenz 10y ago
Nope. Development costs $1B+ by itself, as you can see from my source or your link. Marketing spend is on top of the R&D cost.
I agree that we should limit drug advertising, but that Global Data report is off by an order of magnitude. Total advertising for Rx drugs is $15B to physicians and $5.2B to consumers.[1,2] The discrepancy is due to several factors.
First, the Global Data report lists combined sales and marketing. Sales includes essential logistics needed for us to get our drugs, so you can't really say that marketing alone costs more than R&D.
Second, most marketing is for over-the-counter drugs, for obvious reasons. Tylenol, sold by Johnson & Johnson, has an enormous marketing budget, but it's not exactly the kind of drug that forces people to buy insurance.
Third, drugs only account for 40% of J&J sales--their scary marketing budget includes lots of advertising for non-pharmaceutical products.
[1] http://www.pewtrusts.org/en/research-and-analysis/fact-sheets/2013/11/11/persuading-the-prescribers-pharmaceutical-industry-marketing-and-its-influence-on-physicians-and-patients http://www.pewtrusts.org/en/research-and-analysis/fact-sheet...
[2] https://www.statnews.com/2016/03/09/drug-industry-advertising/ https://www.statnews.com/2016/03/09/drug-industry-advertisin...
- rlpb 10y ago> Nope. Development costs $1B+ by itself, as you can see from my source or your link. Marketing spend is on top of the R&D cost. Irrelevant. You said: "And expensive drugs are expensive primarily because it really does cost $1B+ to develop a new drug" [emphasis mine] and I demonstrated this to be untrue. The data shows that the primary cost is not in R&D. It doesn't matter what you say about the necessity of that sales and marketing. I didn't comment on that. The primary cost is still not in R&D. > Third, drugs only account for 40% of J&J sales--their scary marketing budget includes lots of advertising for non-pharmaceutical products. This may be true and perhaps more data is needed, but I haven't seen any evidence that demonstrates unequivocally that the primary cost of drugs in the US is due to R&D.