3 ms·
Big pharma is big pharma because they had success. It is like only looking at the most profitable tech companies and say "they spend more on profits than R&D".
by victorbjorklund 3y ago
Big pharma is big pharma because they had success. It is like only looking at the most profitable tech companies and say "they spend more on profits than R&D". Many pharma companies never make a single dollar in profit. It is just like VC investing. You invest in 20 companies and 19 goes bankrupt but 1 is a massive success. It then becomes weird to only look at the 1 success and say "wow they spend so much on profit distributions" and ignoring all the losses the same investors made on the 19 other companies.
- rightbyte 3y agoIs there any data to back this up? There is no way the startups even make a dent in total cashflow for the sector.
- refurb 3y agoThis is a logical fallacy in their arguments. Compare the list of biggest pharma today versus 20 years ago. A bunch were acquired or merged because they couldn’t sustain profitability. Take a look at the return of the industry as a whole. It’s not that great.
- victorbjorklund 3y agoYes, that is exactly what I am saying. Overall the industry isnt making any outsized returns. It is just the few unicorns that does.