4 ms·
The inefficiency is that for many pharmaceutical companies in the US, their marketing budget is much higher than (~10X) the R&D budget.
by itronitron 2y ago
The inefficiency is that for many pharmaceutical companies in the US, their marketing budget is much higher than (~10X) the R&D budget.
- slt2021 2y agothe marketing expense is a legalized lobbying. What you see in marketing, is just payback scheme to Media/TV (to shut down any criticism of pharma), and doctors (for promoting/prescribing drugs)
- croissants 2y agoWhere are you getting 10X? If I look at, say, Merck, their "sales, general, and administrative expenses" [1] trends at even or slightly higher than their R&D expenses [2]. Abbvie's ratio is around 2x [3, 4]. AFAIK, SG&A is the number that groups criticizing pharmaceutical companies look at, even though it includes a lot of money spent on things like paying lawyers, which any pharmaceutical company that actually wants to make back the billions spent on developing drugs will have to do. [1] https://www.statista.com/statistics/269499/merck-and-co-sganda-expenses/ https://www.statista.com/statistics/269499/merck-and-co-sgan... [2] https://www.statista.com/statistics/282738/expenditure-on-research-and-development-by-merck-and-co/ https://www.statista.com/statistics/282738/expenditure-on-re... [3] https://www.macrotrends.net/stocks/charts/ABBV/abbvie/selling-general-administrative-expenses https://www.macrotrends.net/stocks/charts/ABBV/abbvie/sellin... [4] https://www.statista.com/statistics/417068/r-and-d-expenditure-of-abbvie/ https://www.statista.com/statistics/417068/r-and-d-expenditu...
- itronitron 2y agoThat's how it was described to me by several R&D staff at JnJ two decades ago.