Healthy Skepticism Library item: 8903

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: Journal Article

Stetler CJ.
Manufacturers face health care problems
New Physician 1971 Mar; 20:161-163

Abstract:

U. S. prescription costs for the year 1969 were reviewed, and certain facts about the country’s drug industry presented. The average return on invested capital in the drug industry in 1969 was 18.4%, comparable to that of the soft drink industry, versus 11.2% for all industry. The average drug store prescription in 1969 cost the consumer $3.68, and the average profit for the manufacturer on such a prescription was 18 cents. Per capita expenditures for the year for prescriptions through retail pharmacies—not including drugs administered during hospitalization—were $19.00. Of the more than 1,200 U. S. drug companies, 124 are members of the Pharmaceutical Manufacturers Association and manufacture 95% of the nation’s prescription drugs. Pharmaceutical industry research activities and achievements are briefly discussed.