CSRxP ANALYSIS FINDS PHARMACEUTICAL INDUSTRY’S PROFIT MARGINS TEN TIMES GREATER THAN OTHER SECTORS OF DRUG SUPPLY CHAIN

Study Finds Big Pharma’s Price-Gouging and Patent Abuse Playbook Fuels Blockbuster Profits, Debunks Pharmaceutical Industry’s Blame Game

Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) released the findings of an analysis Wednesday demonstrating the pharmaceutical industry’s profit margins are ten times greater than other sectors of the prescription drug supply chain.

“Big Pharma continues to bank blockbuster profits fueled by a price-gouging and patent abuse playbook while pointing the finger at others in a false blame game designed to avoid accountability and keep drug prices high,” said CSRxP executive director Lauren Aronson. “Policymakers must reject Big Pharma’s self-serving blame game meant to deflect scrutiny from their egregious pricing and anti-competitive practices and focus on holding brand name drug makers accountable, especially for their abuse of the U.S. patent system, to lower drug prices for patients.”

“Whether gaming the system to block competition, hiking prices at rates outpacing inflation, setting increasingly out-of-control launch prices, falsely claiming solutions to lower prices could impede innovation or blaming others in the supply chain, Big Pharma will stop at nothing to keep drug prices high,” Aronson continued. “Congress need only follow-the-money to see which sector of the supply chain is responsible for high prescription drug prices in America.”

CSRxP’s analysis found the pharmaceutical industry’s average annual net income margin was nearly 23 percent, while the average for other sectors of the U.S. prescription drug supply chain, including distributors, retail pharmacies, pharmacy benefit managers (PBMs) and health insurers, was just 2.3 percent.

Pharmaceutical Manufacturers’ Profit Margins are 10 Times Larger than Other Drug Supply Chain Sectors

CSRxP’s analysis was conducted based on publicly available financial data from company reports and filings submitted to the U.S. Securities and Exchange Commission (SEC) for calendar years 2017 to 2023.

The full analysis can be accessed HERE.

Learn more about market-based solutions to hold Big Pharma accountable and lower prescription drug prices HERE.

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