created by organicflash on 30/01/2025 at 01:31 UTC
31 upvotes, 5 top-level comments (showing 5)
Wrong!
In 2023, Pfizer reported total revenues of $58.5 billion. The company invested $10.7 billion in internal R&D projects and allocated approximately $14.4 billion to Selling, Informational, and Administrative (SI&A) expenses, which include marketing and sales activities.
That's from Pfizer's own financial report.
Comment by Left-Papaya-3714 at 30/01/2025 at 01:58 UTC
7 upvotes, 1 direct replies
Good point/observation. More money put towards marketing than the product/research itself. Typical business mode of operation
Comment by decriz at 30/01/2025 at 13:49 UTC
1 upvotes, 0 direct replies
Mass production or production in bulk of pharmaceuticals is cheap. Remember doses are in the milligrams/micrograms. It's almost like the revenue from one or a few whole cartons of drugs can cover the production costs for a whole batch, more or less. Bad estimate but you get the point. Big Pharma makes obscene profit margins.
R&D is not as big an expense as you think since research materials are just small batches.
Their biggest expense is always marketing especially to doctors since they are the gatekeepers of pharma profits. Because basically no prescription, no doctor's order = no sale, no revenue.
I should know, I worked in finance/accounting of the largest pharma company in my country. One of the areas I worked in is accounts payable.
Handled sales reps, med reps, bus devs, field workers, revolving fund liquidations, cash advances, etc.
Expenses that are basically incentives for doctors, sweeteners for doctors, doctor requests for sponsorship to conferences (plane+accomodation+pocket money), gifts, etc.
Comment by jaciems at 02/02/2025 at 06:53 UTC
1 upvotes, 0 direct replies
How else do you think they could sell a product which specifies in the purchase agreement that its effectiveness and safety is unknown and that it can cause adverse events. I wonder if political bribes fall under administrative expenses.
Comment by ledeng55219 at 30/01/2025 at 08:46 UTC
1 upvotes, 1 direct replies
What other activities are done in SI&A?
Comment by Level_Abrocoma8925 at 31/01/2025 at 03:04 UTC
0 upvotes, 0 direct replies
The mRNA research was not done by Pfizer, so it wouldn't be included in the "internal R&D" post. I would guess something similar happens with loads of their products. Also, "Administrative expenses" is obviously not the same as marketing.