Profitability of Large Pharmaceutical Companies Compared With Other Large Public Companies.

ABSTRACT:

Importance

Understanding the profitability of pharmaceutical companies is essential to formulating evidence-based policies to reduce drug costs while maintaining the industry's ability to innovate and provide essential medicines.

Objective

To compare the profitability of large pharmaceutical companies with other large companies.

Design, setting, and participants

This cross-sectional study compared the annual profits of 35 large pharmaceutical companies with 357 companies in the S&P 500 Index from 2000 to 2018 using information from annual financial reports. A statistically significant differential profit margin favoring pharmaceutical companies was evidence of greater profitability.

Exposures

Large pharmaceutical vs nonpharmaceutical companies.

Main outcomes

SUBMITTER: Ledley FD 

PROVIDER: S-EPMC7054843 | biostudies-literature | 2020 Mar

REPOSITORIES: biostudies-literature