this post was submitted on 21 Oct 2023
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I'm always curious about the actual numbers. Here's their R&D budget by year:
https://www.statista.com/statistics/267810/expenditure-on-research-and-development-at-pfizer-since-2006/
And their overall revenue:
https://www.pfizer.com/sites/default/files/investors/financial_reports/annual_reports/2022/performance/
In 2020, their revenue was about $40B on $8.5B in R&D cost. They had a huge revenue increase the last few years, with 2022 being $100B, but R&D only increased to about $11B.
So they do have R&D, but it's not that big compared to the money they're bringing in. Their net income has increased substantially, as well.
Thank you for finding the numbers
In the bio industries R&D has almost exclusively become just the D. We like to think that there are a bunch of scientists doing lifelong, painstaking research to develop new drugs or treatments within the labs at Pfizer, Merk, Lilly, or whatever, but a significant portion of the research is done at small independent or school funded labs.
Once one of those small labs creates a decent treatment that will likely pass government testing, a large corp will buy it and say "We just made this brand new thing!". Really though, their R&D budget is spent on acquisition, production, supply chain development, and marketing.
Working in R&D in a few different positions in my career and this is absolutely the case. Hell some of them you could equate to white label SaaS products. Using research from universities putting it in a neat package and selling it.
The corporate bio industry is so fucked up I can't even begin to describe it. I tell my friends and family stories, but I sound like an insane person to them. The scale at which money is thrown around is just too large for most people to imagine.
Like this: imagine a worker that makes less than $35k per year processes, and is soley responsible for $20M in products, per month. Product that people all around the world not only use, but ingest. Now imagine that that one worker is the only one in the world who knows how that product is processed. That's how bio manufacturers work.
In addition to that, I've heard that a large portion of that R&D spending is on iterating drugs they already own so that when the patent runs out they can patent a new version and lobby the old one to be made obsolete so generics can't be made.