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SnowHill9902 | 2 years ago

Pharmaceutical companies are not charging for the cost it took to develop that drug, but for the rolling cost it’ll take to develop future ones.

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schwartzworld|2 years ago

Also CEO bonuses

jeroenhd|2 years ago

Not necessarily, incredibly large amounts of money pharmaceutical companies spend is actually spent on advertising their products to maintain their cash flow. Examples can be found online but this source [1], which is obviously biased, shows the statistics for the biggest companies in a nice list.

The (hundreds of) millions spent on bonuses are nothing compared to the billions spent on making sure your doctor recommends UmbrellaCorp PainAWay™ over a generic brand that will cost you a tenth of the price [2]. That includes not just TV ads, but also buying conference tickets and free lunches for doctors; anything to make sure they get the upper hand.

[1]: https://www.csrxp.org/icymi-new-study-finds-big-pharma-spent...

[2]: It should be noted that some generics can work less effectively or cause additional side effects in some people, but for many types of medication the difference is minimal and sometimes the big-brand products even come with more side effects than their competitors' product