These days pharma does r&d with the balance sheet through M&A and partnering deals that don't show up in the r&d line items Drug prices are lower ex us bc marg

These days pharma does r&d with the balance sheet through M&A and partnering deals that don't show up in the r&d line items Drug prices are lower ex us bc marginal price is still greater than marginal cost. However if prices weren't high in US, EU and Japan than everywhere else, the drugs wouldn't be developed in the first place