Effexor Has 87 Percent Profit Margin
A very interesting bit from a very smart financial analyst who went and somehow figured out which drugs had the largest pre-tax profit margins. Topping the list was Effexor with an 87 percent pre-tax profit margin. Even more astonishing is that more than half of the drugs the analyst looked at had pre-tax margins of 70 percent or greater.
Here's the list via Pharmalot:
1 - Effexor (Pfizer) 87 percent
2 - Arimidex (AstraZeneca) 85 percent
3 - Femara (Novartis) 84 percent
4 - Detrol (Pfizer) 84 percent
5 - Gemzar (Lilly) 84 percent
6 - Xeloda (Roche) 82 percent
7 - Lipitor (Pfizer) 82 percent
8 - Zometa (Novartis) 81 percent
9 - Plavix (Bristol-Myers/Sanofi-Aventis) 81 percent*
10 - Taxotere (Sanofi-Aventis) 80 percent
* - for the total brand, ignoring profit splits
Posted by Philip Dawdy at January 5, 2010 12:41 PM
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Heh, accounting isn't black and white - it's gray. I could in short order come up with 4 different ways to calculate product cost, and given a little more time, come up with more. Throw in transfer pricing between countries and exchange rates, and I can give you any answer you want.
