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News Link • Big Pharma

Pharma Companies Spend 19x more on Marketing than Research, and Returns are Dropping

• naturalsociety.com

The pharmaceutical industry swears the high cost of drugs is due to research and development costs, conveniently omitting the actual amount of money spent on the marketing of these drugs, which is exorbitantly more. A recent Deloitte report suggests that pharmaceutical companies are taking a hit because investments made in R&D on new drugs simply are not paying off anymore. [1]

As we previously reported, pharmaceutical companies spend more money on marketing drugs than research and development. Johnson & Johnson for example recently spent $17.5 billion on marketing and only $8.2 billion on research and development. Similarly Pfizer spent $11.4 billion on marketing and only $6.6 billion on research and development. [2]

Deloitte's research into a total of 12 pharmaceutical companies' R&D expenditures for the previous year is telling, even though the comparatively small amount of money spent on R&D isn't paying off for Big Pharma like it used to.

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