A report from the California-based Institute for Health and Socio-Economic Policy stated that in 2015 out of the top 100 pharmaceutical companies by sales, 64 spent twice as much on marketing and sales than on R&D, 58 spent three times, 43 spent five times as much and 27 spent 10 times the amount .
In 2019, the pharmaceutical industry spent 186 billion U.S. dollars on research and development, which is an increase of over five billion compared to the previous year. By 2026, expenditures are expected to reach a total of over 230 billion U.S. dollars. Some 17,700 prescription drugs were in the 2020.
In 1997, drug companies spent roughly $17.1 billion on marketing for prescription drugs and any health conditions that may be associated with them. (A relatively paltry $600 million was spent to market condition awareness, health services, and lab testing.) By 2016, that figure was $26.9 billion .
A good pharmaceutical market research project can reveal industry trends and help forecast market growth. It can describe how well a company is (or is not) doing with its consumer encounters, marketing efforts and distribution methods.
Section 2: Marketing to physicians An average US physician controls over $2 million in annual healthcare costs, with doctors collectively responsible for 80 percent of the $3.5 trillion Americans spend on health services every year. That’s why physicians are the number one target of every pharma marketer.
Pharma companies make money by discovering and marketing the medications. These medications before hitting the market need to undergo lengthy and expensive clinical trials to prove their safety and effectiveness over existing alternatives (if any).
Although the Trump administration keeps promising to lower drug prices, drug costs continue to climb as Americans suffer and pharmaceutical companies profit and their CEOs line their pockets. The government-funded research and major tax benefits that these pharmaceutical companies enjoy help them stay profitable.
Spending Big and Still Climbing The CSRxP and GlobalData study found more than 19 cents of every Big Pharma dollar goes to marketing and advertising — a whopping $47 billion when looking at just the top 10 U.S.-based drug makers.
While basic discovery research is funded primarily by government and by philanthropic organizations, late-stage development is funded mainly by pharmaceutical companies or venture capitalists.
The analysis revealed, for example, that 90.8 percent of the commercials in 2016 showed actors receiving social approval as a result of using the drug, compared to 83.1 percent in 2004.
On average, pharmaceutical companies spend 17% of revenues on research and development ( R&D ). Pharmaceutical companies are heavily reliant on research and development as their success is contingent on the development of new drugs. Out of the top 20 largest R&D spenders, pharmaceutical companies account for nearly half.
In 2019, Pfizer invested close to 1.9 billion U.S. dollars in advertising in the United States .