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Politics : A US National Health Care System?
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To: Archie Meeties who wrote (8223)8/19/2009 2:12:17 PM
From: TimF2 Recommendations   of 42652
 
FYI drug companies use about 2x as much revenue on advertising as they do on research

1 - So what? If it was 10 times as much or 100 times as much, it would still be true that reducing profit from new drugs would reduce the incentive to develop them.

2 - I've seen the figures quoted for "marketing and overhead". Even marketing isn't just advertising, it includes for example giving free samples. And the other overhead items included may have little or nothing to do with advertising.

The vast majority of cutting edge research defining new receptors or intercellular mechanisms of drug activity come from...government sponsored research.

The basic research is mostly paid for by governments, but basic research doesn't get you drugs.

You need applied research, product development, and then extensive and expensive product testing. (and then you have to market the new drug, otherwise the whole point is pointless, so its not like reducing marketing expenses would clearly increase innovation, the marketing cost is mostly irrelevant to the point about how profits motivated R&D and testing, and may even work the other way, if profits are lower, the effort and costs to market some drugs may not be worth it, so the drugs might not be developed partially because of the fact that the marketing is expensive)
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