Last year, the three largest US-listed pharmaceutical companies by revenues, Pfizer, Johnson & Johnson, and Merck, spent a combined $39.6 billion on R&D. That is, admittedly, a lot of money. But less than Medicare is currently paying on just ten drugs
While Big Pharma holds vast portfolios of existing patents for prescription drugs, the innovation pipeline for new drugs actually has very little to do with Big Pharma. In reality, public sources — especially the NIH — fund the basic research that makes scientific breakthroughs. Then small, boutique biotech and pharmaceutical firms take that publicly generated knowledge and do the final stages of research, like running clinical trials, that get the drugs to market. The share of small companies in the supply of new drugs is huge, and it’s still growing. Fully two-thirds of new drugs now come from these small companies, up from one-third twenty years ago. It is not the research labs of Pfizer that are developing new drugs.
silent2k@lemmy.world 1 year ago
The clinical trials are the most costly and most risky part of development.
be_excellent_to_each_other@kbin.social 1 year ago
From the passage I already quoted:
Quereller@lemmy.one 1 year ago
That is not true. Small biotech usually cannot effort late stage development. They either just get buyed by big pharma. Or they licence the lead compound to big pharma and get royalties. Very few exemptions to this.
be_excellent_to_each_other@kbin.social 1 year ago
I'll assume you know more about this than I do despite the lack of any citation.
I refuse to believe there's an ethically acceptable business justification for this ridiculous markup.
The entire healthcare industry in the US is built on a foundation of corporate greed. This is just one obvious example.