- Americans spend a lot more money on hospital and physician care than prescription drugs, but pharmaceutical companies pocket a lot more of than other parts of the industry. (Source: Axios)
- 63% of the profit total went to drug companies, even though they collected 23% of the revenue
- Pfizer had the highest profit total ($4.1 billion) of any publicly traded health care company in the third quarter.
- Of the 19 companies that tallied at least $1 billion of third-quarter profit, 14 were drug companies.
While PhRMA fights to close the “donut hole” for seniors and argues that 340B pricing is being used by hospitals to pad their profit margins the pharma industry is taking in a lot of profits. To make matters worse Pfizer, who had the highest profit total, said that they are going back to business as usual which means an annual price increases.
American annual spending on prescription drugs reached about $1,000 per person in 2015 and 16.7 percent of overall personal health care spending . Prices are a lot higher for brand-name drugs in the United States because we lack the widespread policies to limit drug prices that many other countries have.
Sales of costly new hypertension and cancer drugs took off in the 1990s. The number of drugs with sales that topped $1 billion increased to 52 in 2006 from six in 1997 . The combination of few price controls and rapid growth of brand-name drugs increased American per capita pharmaceutical spending.
When these statistics become common knowledge people are going to be screaming about big bad pharma and that’s a shame for all the good, hard working people who believe in what they’re doing.
In the meantime PhRMA continues to spend a lot of money on lobbying and spewing untruths in their social media feed. People are smart enough to see thru their propaganda.
You can bet that with Democratic control of the House there WILL BE cooperation with Senate Republicans on doing something about an industry that services Wall Street more than patients.