Melody Petersen's book "Our Daily Meds" - AARP Bulletin Books

Drugmakers Flush With Cash

Because only about 10 percent of the price of most brand-name pills goes to cover the cost of the raw chemicals and manufacturing, the pharmaceutical industry has plenty left even after paying for advertising, promotion, research and the high salaries and expensive perks of its executives. While patients and taxpayers have been left with emptied pockets, the drugmakers have been flush with cash. From 1995 to 2002, they were the nation’s most profitable industry. In 2004, the pharmaceutical companies turned nearly 16 cents of each dollar of revenue into profit, according to Fortune magazine. That compares with the median profit earned by America’s 500 largest public companies that year of a little more than 5 cents. —From Our Daily Meds by Melody Petersen, to be published by Farrar, Straus & Giroux LLC. Copyright 2008 by Melody Petersen. Featured AARP Member Benefits See more Entertainment offers > See more Entertainment offers > See more Entertainment offers > See more Entertainment offers > Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

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