The pharmaceutical industry never passes up an opportunity to bemoan massive research costs in trying to justify its high prices for prescription drugs.
Guess what? Research spending pales in comparison to what the drug companies spend on advertising and promotion. From TorStar:
Drug companies spend almost twice as much on marketing and promoting their products than on research and development, a new study says.
In their analysis of data from two market research companies, Marc-André Gagnon and Joel Lexchin of York University found that American drug companies spent $57.5 billion on promotional activities in 2004.
By comparison, spending on industrial pharmaceutical research and development in the United States was $31.5 billion in the same year, according to a report by the National Science Foundation.
The types of marketing in the $57.5 billion figure, compiled using data from market research companies IMS and CAM, included free samples, direct-to-consumer drug advertising, meetings between company representatives and doctors to promote products, email promotions and direct mail, said the study.
The findings, published this week in the journal Public Library of Science Medicine, confirm "the public image of a marketing-driven industry," the study authors say.
The report doesn't seem to mention the massive amounts Big Pharma shells out in lobbying US senators and congressmen. The Pharmers are said to spend more than any other group backing American politicians. I guess they do it because it pays.
Guess what? Research spending pales in comparison to what the drug companies spend on advertising and promotion. From TorStar:
Drug companies spend almost twice as much on marketing and promoting their products than on research and development, a new study says.
In their analysis of data from two market research companies, Marc-André Gagnon and Joel Lexchin of York University found that American drug companies spent $57.5 billion on promotional activities in 2004.
By comparison, spending on industrial pharmaceutical research and development in the United States was $31.5 billion in the same year, according to a report by the National Science Foundation.
The types of marketing in the $57.5 billion figure, compiled using data from market research companies IMS and CAM, included free samples, direct-to-consumer drug advertising, meetings between company representatives and doctors to promote products, email promotions and direct mail, said the study.
The findings, published this week in the journal Public Library of Science Medicine, confirm "the public image of a marketing-driven industry," the study authors say.
The report doesn't seem to mention the massive amounts Big Pharma shells out in lobbying US senators and congressmen. The Pharmers are said to spend more than any other group backing American politicians. I guess they do it because it pays.
5 comments:
I just want to comment on what a brilliant blogger you are.
You take what is important and push it out there.
I do not think you get enough credit, but I offer my kudo's.
What a kind thing to say. I'm deeply flattered. Thank you so much. I'm just pleased to hear someone say these posts are interesting. Thanks KNB.
It’s all true. I used to work for a pharmaceutical ad agency here in Toronto and the money is astounding, so much of it is wasted too. I have literally tossed hundreds of thousands of dollars and months worth of work in the garbage because somebody at the last minute didn’t like the it.
I always maintained that the high cost of drugs has little to do with research and development as they would have believe, all they do is take an old drug and re-brand it. The drug companies work for their shareholders and no one else, and the incentive to make huge profits is too great.
But of course, nothing is going to change. Man, there is so much that the diminishing middle class is paying for!!!
Weenie
I'm continually astonished at how much political clout Big Pharma has bought in the US and how that influence has been leveraged to advance its interests abroad, particularly in the Third World. It's cartels like these that ignite the progressive movement every few generations.
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