Re:Sneaky deals are keeping cheaper generic medicines off th...
by zaroth on Saturday June 29, 2019 @10:44PM
(#20316036)
Your Washington Post article is misleading. They are conflating “SG&A” with “Marketing”.
Pfizer, for example, does spend more on “SG&A” than it does on “R&D” but marketing makes up just a small part of “SG&A”.
> Pfizer topped that list with $622.3 million in ad spending last year. Pfizer came in fourth on FierceBiotech's list of R&D budgets, with $7.9 billion. That means DTC ads were less than one-tenth the size of its R&D budget.
Moreover, look across any number of research industries be it Pharma, Tech, Industrial Automation, whatever, you will find SG&A as a rule of thumb tends to roughly equal R&D spending as a total share of expenses.
Pfizer, for example, does spend more on “SG&A” than it does on “R&D” but marketing makes up just a small part of “SG&A”.
> Pfizer topped that list with $622.3 million in ad spending last year. Pfizer came in fourth on FierceBiotech's list of R&D budgets, with $7.9 billion. That means DTC ads were less than one-tenth the size of its R&D budget.
Moreover, look across any number of research industries be it Pharma, Tech, Industrial Automation, whatever, you will find SG&A as a rule of thumb tends to roughly equal R&D spending as a total share of expenses.
[1] - https://www.fiercepharma.com/regulatory/does-pharma-spend-mo...