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Date Posted: 03:03:36 08/25/08 Mon
Author: Bob
Subject: Your drug dollars at work


A bit of research* found the following: PR materials for America's drug manufacturers are replete with assertions such as "U.S. companies spend much more on R&D than on promotion." But the math doesn't verify the claim. A study released earlier this year by 2 Canadian researchers found that in the U.S alone, the industry's research budget of $31.5 billion---which includes billions in public funding--pales in comparison to the $57.5 billion spent on promotions. In 2004, the industry employed more than 100,000 sales reps, or roughly 1 for every 7 doctors; the companies spent an average of $61,000 per MD.

Here's the spending percentage breakdown for the top 4 drug companies: marketing and administration: 34%; manufacturing/production: 27%; Taxes: 5%; R&D: 15%; net profits: 19%.

*The September/October issue of Mother Jones magazine.

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