- Pharmaceutical and biotechnology sales revenue increased from $534 billion to $775 billion between 2006 and 2015. Additionally, 67% of drug companies increased their annual profit margins during the same period — with margins up to 20 percent for some companies in certain years. (Source: GAO)
Pharmaceutical companies continue to rake in the highest profit margins.
- Eight of the 15 highest net profit margins were at drug companies.
- Yet PhRMA has launched a social media campaign to point the finger at hospitals.
While drug companies rake in the cash from tax cuts and the high prices of medicine PhRMA is on a mission to turn down the heat. Their latest social media campaign is aimed at pointing the finger at everyone except the pharma industry.
In Jewish this is called “chutzpah” which means shameless audacity; impudence. As I write this there are stories about a pharma company that marked up a drug 400% because “they had the moral obligation to”. Hah?
Over the past few weeks PhRMA has also pointed the finger at PBM’s for high drug prices which is partly true. However, that does not explain why insulin prices have gone up as much as 500% and why, as a result, some patients are gambling with their lives because they can’t afford insulin.
It’s gotten so bad that some hospitals are looking at manufacturing some of their own drugs to help compensate for the high cost.
PhRMA is nothing but an industry funded lobbying group, but in the feedback that I have received in focus groups, consumers aren’t buying their propaganda. It’s time for PhRMA to stop trying to deny that pharma companies are the victim. To keep saying otherwise is chutzpah.
Originally published at worldofdtcmarketing.com on September 13, 2018.