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Pharmaceutical Facts

  • The “Research-based” pharmaceutical industry spends more on marketing and administration than it does on research and development. (Families USA)
  • U.S. Drug spending increased 17.1% to $154.5 billion dollars in 2001. One-quarter of this increase was due to a shift to the use of more expensive drugs.  (National Institute for Health Care Management)
  • The top selling drug in 2001 was Lipitor. Increase in Lipitor sales contributed more than any other single drug to the increase in drug costs that year (NIHCM). The effect of Lipitor on cardiovascular morbidity and mortality remains unknown.
  • Pharmaceutical industry profits were 18.5% of revenue in 2001. For the remainder of Fortune 500 companies, median profits were 3.5% (FamiliesUSA).
  • Since 1995, R&D staff of U.S. brand name drug companies have decreased by 2%, while marketing staff have increased by 59%. Currently, 22% of staff are employed in research and development, while 39% are in marketing. (PhRMA Industry Profile 2000; percentages calculated by Sager and Socolar)
  • In a study by Avorn, et al, forty-six per-cent of physicians reported that drug reps are moderately to very important in influencing their prescribing habits (Am Journal of Med, 1982).
  • In a study by Lurie, et al, one-third of medical residents reported that they change their practice based on information provided by drug reps (Journal of Gen Int Med, 1990).
  • In a study by Steinman, et al, 61% of medical residents stated that industry promotions did not influence their own prescribing, but only 16% believed other physicians to be similarly uninfluenced.(Am Journal of Med, 2000)
  • Two and one-half billion dollars were spent on advertising to consumers in 2000. Increases in the sales of the 50 drugs most heavily advertised to consumers were responsible for almost half (47.8%) of the $20.8 billion increase in spending in 2000.(NIHCM)
  • In 2000, Merck spent $161 million on advertising for Vioxx. That is more than Pepsico spent advertising Pepsi. ($125 million), and more than Anheuser-Busch spent advertising Budweiser.($146 million). The increase in Vioxx sales in 2000 accounted for 5.7% of the 1 year increase in drug spending. (NIHCM)
  • A study by Westfall, et al, found that 96% of physicians and staff had taken samples for personal or family use in the preceding year. (JAMA, 1997)
  • According to industry estimates, drug companies spent $15.7 billion dollars on promotion in 2000. $7.2 billion dollars worth of free samples were distributed that year(IMS Health).
  • A study by Chew, et al , found that in the treatment of hypertension, over 90% of physicians would dispense a sample that differed from their preferred drug choice. (JGIM, 2000)
  • The AMA generates $20 million in annual income by selling detailed personal and professional information on all doctors practicing in the United States to the pharmaceutical industry (NY Times, November 16, 2000)

    Source: www.nofreelunch.org


    If you are still interested in the safety of drug companies...

    Twenty percent of new drugs later found to have serious adverse effects

    The May 1 2002 issue of the Journal of the American Medical Association reported the results of a study that sought to determine the frequency of previously unrecognized adverse drug reactions occurring in recently approved drugs. By analyzing volumes of the Physician's Desk Reference published over a twenty-five year period as well as other information, researchers at Harvard University discovered that half of the newly established adverse effects, which include liver, bone marrow and heart damage as well as pregnancy risks, are found within seven years of their approval, and half of the drugs withdrawn were taken off the market within two years following their release. Study author and primary care physician and researcher at Cambridge Hospital and Harvard Medical School, Dr Karen Lasser, stated, "This study will change the way I talk to patients about the use of new drugs. If there is a safer, effective drug that has been in use for a number of years, I would strongly recommend it over a newer drug whose safety profile is unknown. I would prescribe a new drug only when absolutely necessary, and then watch for adverse effects very, very closely."

    The authors attribute the widespread use of new drugs to extensive promotion by pharmaceutical companies. They note that drug companies may fail to conduct the postmarketing studies the Food and Drug Administration requires when a safety issue is discovered during the drug's preapproval phase.

    Coauthor Dr. Paul Allen , an internal medicine specialist at Cambridge Hospital and Harvard Medical School, commented, "Twenty million patients, almost 10 percent of the U.S. population, were exposed to the five drugs withdrawn from the market between September 1997 and September 1998. Yet the drug companies push the public and doctors to use new drugs that are more profitable but also more dangerous."

     

     


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