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Old 02-07-2008, 04:44 PM  
ADL Colin
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Join Date: Feb 2001
Location: Tube Titans, USA
Posts: 11,929
On paying $100 for $2 pills. I'm sure there are SOME like that but as a Pfizer shareholder I can only WISH they were all like that. There's DEFINITELY no 98% profit margin (again, on average).

Pfizer made $48 billion revenue last year and the cost of the goods sold was $11 billion. That may sound obscene to some of you but then out of that $37 billion in gross profit there is another $29 billion in expenses. A HUGE R&D budget for example. No pharmaceutical company can survive for long without a new drug pipeline. Old drugs come off patent all the time introducing generic competition. After that there is over $1 billion in taxes. In the end there is a 14.5% profit margin. The $100 pill, on average, costs about $85 for the company to produce when you count all the overhead. Maybe they could sell it for $95 instead.
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