Healthy Skepticism Library item: 8844

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Stetler CJ.
Are drug prices an profits without honor?
Medical Marketing and Media 1975 Jul; 10:11-12, 14, 16

Abstract:

The issue of drug prices and profits and their significance to the pharmaceutical manufacturing industry are discussed. The profit level of pharmaceutical manufacturers is compared with those of other industries and the various means of reporting profit are discussed. The importance of the research and development within the industry, the importance of the research team, and the problems encountered by research intensive companies in treating research and development as an expense (i.e., overstatement of profit ability), are stressed. The industry’s high profits are defended on the grounds of the high risks involved in developing pharmaceuticals, and a suggestion is presented that society actually benefits because of the higher tax payments which accompany higher profits. There is a brief discussion on the stability of prescription prices paid by the public despite spiralling costs in other sectors of the economy.