[Pharm-policy] Public Citizen's Prescription Drug Update - - Drug Company Profits

[James Love]

---------- Forwarded message ----------
Date: Wed, 11 Oct 2000 17:36:01 -0400
From: Roxanne Gillespie <ROXANNE_GILLESPIE@citizen.org>
Subject: Public Citizen's Prescription Drug Update - - Drug Company Profits

October 11, 2000

Public Citizen Releases Detailed Analysis of Prescription Drug Industry
Profitability as Debate Over Prescription Drug Issue Heats Up in
Election

WASHINGTON, D.C. - Public Citizen today released a comprehensive
analysis of drug company profitability that will provide a useful
resource to reporters writing about the issue during the closing days of
Congress and leading up to the November elections.  Using Fortune 500
data, the analysis includes 12 easy-to-read graphs and tables that
provide a clear understanding of the extent of drug industry
profitability and related issues

Among the information contained in the analysis is the following:

=AF An overall comparison of the ratio of 1999 U.S. drug prices to those
in Canada and Europe;

=AF  A comparison of the number of new drugs placed on the market by Europe=
, the U.S. and Japan since 1975;

=AF Information showing that the 10 most profitable drug companies
increased their profits by $4.8 billion, or 20 percent, from 1998 to
1999;

=AF Data showing that the 1999 profits of major drug companies far
exceeded the profits of other Fortune 500 industries such as auto, oil,
securities and airlines

=AF Information showing that Merck, the world's largest drug company, had
1999 profits that exceeded the profits of all Fortune 500 companies in
each of the following industries: airline, railroad, entertainment and
building materials companies;

=AF A comparison of 1999 drug industry profits with those of all Fortune
500 industries and the profits of the 12 largest drug companies -
measured as a percentage of revenue, assets and equity;

=AF A historical look at the tremendous growth in drug industry
profitability since 1970, as compared with all Fortune 500 industries;

=AF A comparison of 1999 drug company revenue dedicated to research and
development, profits and marketing/administration.  On average,
companies devoted 50 percent more revenue to profits than to research
and development (R&D) and three times as much revenue to marketing and
administration than to R&D.

Copies of the 12 graphs and tables are in PDF format at:=20
http://www.citizen.org/congress/drugs/factshts/pharm$graphs.pdf

They are also available at:
http://www.citizen.org/congress/drugs/factshts/corporate$.htm

For more information about the prescription drug issue, please visit:
http://www.citizen.org/congress/drugs/home.htm