Drug makers spend more on marketing than research: study
Last Updated: Thursday, January 3, 2008 | 10:15 AM ET
CBC News
Related
Internal Links
External Links
(Note: CBC does not endorse and is not responsible for the content of external sites - links will open in new window)
U.S. drug companies spend almost twice as much on marketing and promoting medications than on research and development, a new Canadian study says.
"These numbers clearly show how promotion predominates over R&D in the pharmaceutical industry, contrary to the industry's claim," the authors write in this week's peer-reviewed journal Public Library of Science Medicine.
Using data from two market research companies, the University of Quebec's Marc-André Gagnon and York University's Joel Lexchin found U.S. drug companies spent $57.5 billion US on promotional activities in 2004 compared with $31.5 billion on research and development.
Promotional activities included free samples, visits from drug reps, direct-to-consumer advertising of drugs, meetings with doctors to promote products, e-mail promotions, direct mail and clinical trials designed to promote the prescribing of new drugs rather than to generate scientific data.
The authors say their figure of $57.5 billion US is likely an underestimate, citing other avenues for promotion such as ghostwriting of articles in medical journals by drug company employees, or the off-label promotion of drugs.
Drug companies have long argued they are driven primarily by research, while critics charge that marketing and profits are their primary concerns.
It's not a surprising conclusion, said Steve Morgan, an expert on the economics of the pharmaceutical industry at the University of British Columbia.
"It's been known for a long time that manufacturers of prescription drugs spend more money on marketing than they do on research and development," added Morgan, who heads the program in pharmaceutical policy at the university's Centre for Health Services and Policy Research.
There were extensive U.S. government reviews of the pharmacy business in the 1950s and '60s and again in the 1980s. But there hasn't been a comprehensive study of drug industry profits and spending in more than a decade.
With files from the Canadian PressShare Tools
Latest Ottawa News Headlines
- Aylmer triple stabbing leads to first-degree murder charges

- The estranged partner of a young mother who was stabbed to death along with her parents at their home in Aylmer, Que., has been charged with first-degree murder Friday. more »
- Double-lung recipient dances on Ellen show
- Organ donation advocate Hèlène Campbell of Ottawa made her second appearance on the Ellen DeGeneres Show, but her first since undergoing a double-lung transplant. more »
- Canadian woman continues tweeting her way to the top of Everest
- Sandra Leduc is taking a second run at Mount Everest's summit after a deadly storm forced her back down the mountain and killed four others on Sunday. The Canadian lawyer and government worker is tweeting her progress along the way. more »
- Teens share bullying tales in confession booth
- Raw stories about bullying emerged when a video booth was set up inside a Quebec high school. more »
Top News Headlines
- Everest victim's husband says family not seeking government help
- The husband of a Toronto woman who died trying to climb Mt. Everest on Saturday says his family is not seeking government help to cover the cost of bringing his wife's body home. more »
- B.C. premier unhappy with disgraced Mountie's transfer
- B.C. Premier Christy Clark says she is not happy with the RCMP decision to transfer a disgraced Alberta Mountie to the West Coast. more »
- Henrique's OT goal sends Devils into Stanley Cup final
- The New Jersey Devils will vie for a potential fourth Stanley Cup in franchise history after defeating the New York Rangers in six games in the Eastern final, courtesy of rookie Adam Henrique's goal early in overtime. more »
- Employment Insurance review boards to be scrapped
- The federal government is scrapping two review boards used by people appealing decisions made about their employment insurance. more »
Most Viewed/Commented
- Aylmer triple stabbing leads to first-degree murder charges
- Ottawa man in hospital after lightning strike
- Double-lung recipient dances on Ellen show
- Birds attack Ottawa joggers
- Woman pinned between forklifts in Ottawa warehouse
- Pants-pulling case draws 24 more charges
- Ottawa race weekend road closures
- Teens share bullying tales in confession booth
- Victim named in Queensway rollover crash

