A coalition of the drug business fiercest foes is blaming the world’s leading drug makers of hiding behind analysis and development “as an excuse for price-gouging American patients.” They usually point to new research that finds drug makers spent about 22% of their revenues on analysis and growth in 2017 to prove their point.
The new research, first shared with STAT, was commissioned by the Campaign for Sustainable Rx Pricing, a coalition that features pharmacy intermediaries, hospitals, and insurers and that accounts for drug pricing reforms. It was based on an evaluation of 2017 Security and Exchange Commission filings for the ten U.S.-based pharmaceutical firms that generate over half their income from prescribed drugs. And whereas the trade average was 22%, Celgene spent the most significant proportion of its revenues on the analysis (45.49%), and Gilead spent the lowest (14.3%).
The coalition tells it; the research is proof that the pharmaceutical business isn’t spending sufficient income on new cures — regardless of firms’ repeated insistence that that’s precisely why they value their medicine. Jon Conradi, a spokesman for CSRxP, called that line the business’s “go-to protection.”
“It’s a vital context that’s usually not part of the dialog to know not only how a lot the business does spend on R&D, however, what that figure appears within the context of what they spend on everything else — issues that don’t have anything to do with inventing or innovating new cures, or serving to patients,” he mentioned.
The 22% determine, nevertheless, isn’t that far off from what drug makers have mentioned previously: that the business spends, on average, $1 out of each $5 of income on analysis and improvement.
The coalition took an exhausting shot at Pfizer, calling it the “worst offender,” and declaring it dedicated 14.6% of income to R&D that year versus the 40.6% of revenues it banked as income the same year.