Drug prices 'not justified' by pharma R&D spending, new study says
Pharmaceutical companies are charging too much for their drugs for what they spend on R&D, a group of researchers with the medical journal The BMJ said in a study published today.
The researchers question the claim that high drug prices are needed to sustain valuable innovation by analyzing publicly available financial reports from 1999 to 2018 at the 15 largest biopharmaceutical companies.
According to the paper, companies spent more on selling, general, and administrative activities, including marketing, than on R&D — every year from 1999 to 2018.
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