3 ms·
Yep. An interesting bit of data that highlights just how profitable this industry can be comes from the wikipedia page for McKesson Corporation[1]: > On June
by tmnvix 9y ago
Yep.
An interesting bit of data that highlights just how profitable this industry can be comes from the wikipedia page for McKesson Corporation[1]:
> On June 24, 2013, The Wall Street Journal reported that McKesson Chairman and CEO John Hammergren's pension benefits of $159 million had set a record for "the largest pension on file for a current executive of a public company, and almost certainly the largest ever in corporate America." A study in 2012 by GMI Ratings, which tracks executive pay, found that 60% of CEOs at S&P 500 companies have pensions, and their value averages $11.5 million.
[1] https://en.wikipedia.org/wiki/McKesson_Corporation https://en.wikipedia.org/wiki/McKesson_Corporation
- Pokepokalypse 9y agoyes, and before anyone says: "but muh R&D funding!" -- these companies generally have marketing budgets that are 2-3 times the R&D budget. (plus, most basic research is public or university funded). "but muh FDA certification costs" - - there are huge tax carve-outs for these. It's not a main driver. And no: marketing is not necessary for these products. TV commercials and other ads to public: not necessary.
- wu-ikkyu 9y agoAlso worth noting that the US is 1 of only 2 countries in the world which allows direct advertising of drugs and also is the #1 per capita spender on drugs.
- conanbatt 9y agoIts incredible to me that an ad for prescription drugs can target consumers and pay off. I understand aspirin or over the counter stuff, but "ask your doctor about this drug" pays off? How is that reasonable at all.