Posted by Michael Wonder on 14 May 2019
A new study sparks a war of words over the drug industry’s commitment to research
14 May 2019 - The pharmaceutical industry spends about $1 in $5 of its revenues on research and development.
A coalition of the drug industry’s fiercest foes is accusing the world’s top drug makers of hiding behind research and development “as an excuse for price-gouging American patients.” And they’re pointing to a new study that finds drug makers spent about 22% of their revenues on research and development in 2017 to prove their point.
The new study, first shared with STAT, was commissioned by the Campaign for Sustainable Rx Pricing, a coalition that includes pharmacy middlemen, hospitals, and insurers and that advocates for drug pricing reforms. It was based largely on analysis of 2017 Security and Exchange Commission filings for the 10 largest U.S.-based pharmaceutical companies that generate more than half their revenue from prescription drugs. And while the industry average was 22%, Celgene spent the largest percentage of its revenues on research (45.49%) and Gilead spent the lowest (14.3%).
