If you ever want to get mad about capitalism, remind yourself that most drugs that cost >$10,000 a month to take are trivially inexpensive to manufacture and can usually still be massively profitable at a fraction of the cost
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And before everyone jumps in with "but what about research costs???" - revenue from the top 20 drugs worldwide would pay ~150% of the cost of the entire R&D spend for the companies that produced those drugs https://www.healthaffairs.org/do/10.1377/hblog20170307.059036/full/ …pic.twitter.com/SF9XpxaGPf
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Replying to @crankycatcoder
This includes the ones that fail - it's the ENTIRE R&D spend! So you can pay all the costs of every drug that is approved and failed with just the top 20 earners (the next few hundred are pure profit for these companies)
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Replying to @GidMK @crankycatcoder
I'm in agreement with you for the most part, but R&D is only a fraction of the operating costs of these companies. I'm actually surprised it ONLY pays for 150% of r&d costs.
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Replying to @GidMK @crankycatcoder
I must be missing something. Looks like drug company average spend on R&D is 20% of costs. If you take all the revenue from the most profitable drugs, this adds to 150% R&D, or 30% of a company's entire operating expenses. Perhaps they have a much deeper catalog than I'm 1/2
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expecting, but I would have assumed the top 20 drugs covers more like ~50% of operating costs. 2/2
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Yes, most drug companies have hundreds of drugs that they sell. The top 20 earn 5-20 billion a year each, but the next 100 earn quite a bit as well!
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