>This, of course, is a big charade. The cost of producing a drug is low relative to its sales price (gross margins are high, see the pharmaceutical companies’ 10-Ks!)
A drug is not a widget. You can't just make one. Almost all drug programs end in abject failure, usually far before even the clinical trial phase. Gross margins have to be high because you have to pay for 10 failed programs with the successful one.
And one reason that profits are low in the US because that's where there R&D happens.
A drug is not a widget. You can't just make one. Almost all drug programs end in abject failure, usually far before even the clinical trial phase. Gross margins have to be high because you have to pay for 10 failed programs with the successful one.
And one reason that profits are low in the US because that's where there R&D happens.