Big Pharma not making enough money…

Of our suffering that is:

Whenever critics complain about the high cost of prescription drugs, the pharmaceutical industry’s standard defense is that companies have to plow so much money into researching innovative new medicines. But a recently released report from the Government Accountability Office casts doubt on that rationale. Yes the industry is spending heavily on R&D, the GAO found, but it turns out big pharma isn’t actually generating such a good return on their investments.

The congressional watchdog agency’s 48-page study came up with disturbing numbers. From 1993-2004, spending by U.S. drug companies on research and development jumped 147%, from $16 billion to nearly $40 billion annually. But the number of applications the pharmaceutical firms submitted to the Food and Drug Administration for potentially groundbreaking new drugs during that 10-year period increased only a meager 7%. And since 1995, the applications for these innovative drugs have been dropping each year. “The productivity of research and development investments has declined,” the GAO concluded.

This is essentially what the American Medical Student Association has been saying all along.

One Response to Big Pharma not making enough money…

  1. if big pharma isn’t generating any money, let’s check their CEO’s tax returns… i’m sure they made billions.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: