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Puzzled by drug prices

Prostate Cancer | Last Active: Aug 27 4:05pm | Replies (23)

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@russ777

Gross earnings aren't very meaningful when there's no cost basis. It always gets the natives riled up to hear about greedy _____ making BILLIONS in profit.

You need to look at the net earnings margin so you can see how earnings compared to revenue on a percentage basis.

I looked up an analysis of net earnings margin in % for all sectors and found that drug manufacturing (general) came in at 14%, which was the 15th highest among sectors in the economy. The highest was Financial Data and Stock Exchanges at 29.6%. Given the risk, regulation and R&D involved that doesn't seem unreasonable to me.

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Replies to "Gross earnings aren't very meaningful when there's no cost basis. It always gets the natives riled..."

That chart is not gross earnings, that chart is their 2023 net income.