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
Top News Headlines
- Air Canada confident it can reach deal with pilots
- Travellers flying Air Canada can keep booking their flights as negotiations continue with a new federally appointed mediator to help resolve an ongoing contract dispute between the airline and its pilots. more »
- Legalize pot, say former B.C. attorneys general
- Four former B.C. attorneys general are joining a coalition of health and justice experts calling for the legalization of marijuana. more »
- Whitney Houston's funeral to be held Saturday
- Pop star Whitney Houston's funeral service will be held Saturday in the New Jersey church where she first showcased her singing talents as a child. more »
- Online surveillance bill targets child porn: Toews
- A bill that would give police and intelligence agencies new powers to access Canadians' electronic communications is needed to protect against child pornography, says Public Safety Minister Vic Toews. more »
- Legalize pot, say former B.C. attorneys general
- Botox injected by unlicensed practitioners
- Toronto NBA fans experience 'Lin-sanity'
- Homicide follows Vancouver family argument
- Tires slashed on more than 100 cars in Surrey
- Trudeau says sovereignty less of a bogeyman now
- Online surveillance bill targets child porn: Toews
- Adults told B.C. teen had taken ecstasy
- B.C. Mountie drank to 'calm nerves' after fatal crash
