Aug 3, 2009
Drug companies are among the most profitable in the U.S. In 2008, they had 17% profit rate compared to 8% for all manufacturing companies. And 2008 was not an exceptional year.
These super-profits, and huge drug company expenditures for advertising, are the main reasons we pay so much for drugs, not research as they claim – the government pays for most of that.
The drug companies made a big deal recently promising they would try to reduce the rate of increase in what we spend on drugs. Notice they said nothing about reducing their profits!