NEW CSRxP ANALYSIS: BIG PHARMA SPENDS THREE TIMES MORE ON PROFITS, ADVERTISING AND OVERHEAD THAN R&D

Breaking Down The “Big Pharma Dollar” Shows Brand Name Pharmaceutical Manufacturers Investing Nearly 25 Percent More in Profits Alone Than R&D, While Continuing to Claim Lower Drug Prices Would Impede Innovation

Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) released a new analysis of how the largest brand name pharmaceutical manufacturers spend each dollar of their revenue today, finding they spend three times more on profits, advertising and overhead than they invest in research and development (R&D) and that more than 80 cents of every dollar of revenue goes toward something other than researching and developing new treatments.

“Big Pharma routinely opposes bipartisan, market-based solutions that would effectively lower prescription drug prices for the American people by claiming they would undermine innovation, but the brand name pharmaceutical industry’s own financial data tells a different story,” said CSRxP executive director Lauren Aronson. “Brand name drug companies now dedicate three times more of each dollar of revenue to profits, advertising and overhead than to researching and developing new treatments for patients.”

“While Big Pharma’s profits have grown, the share of revenue dedicated to R&D has declined,” Aronson continued. “More than ever, policymakers must recognize Big Pharma’s rhetoric on innovation does not add up and act on the growing bipartisan momentum for solutions to hold Big Pharma accountable for anti-competitive practices, like abuse of the U.S. patent system, that keep drug prices high for American consumers, taxpayers and the entire U.S. health care system.”

CSRxP’s updated “Big Pharma Dollar” analysis examined how the ten largest pharmaceutical companies by U.S. revenue allocate each dollar of their revenue. The findings, utilizing U.S. Securities and Exchange Commission (SEC) data for calendar year 2025, show that 53 cents of every Big Pharma dollar of revenue goes to profits, advertising, selling and administrative expenses and corporate overhead, compared with just 18 cents dedicated to R&D – a three-to-one margin. Big Pharma banked nearly 25 percent more in profits alone than brand name manufacturers spent on R&D.

CSRxP last conducted a “Big Pharma Dollar” study in 2019. Compared to the 2019 findings, the new analysis found:

• The share of each dollar of Big Pharma’s revenue going to profits increased from 18 cents to 25 cents
• The share dedicated to R&D declined from 22 cents to 18 cents
• The share dedicated to paying U.S. taxes fell from 10 cents to four cents
• Spending on advertising, selling, general and administrative expenses remained at 19 cents, despite rising scrutiny of Big Pharma’s staggering spending on often misleading marketing practices directly targeting consumers
• Spending on corporate overhead remained at nine cents

Read the full analysis HERE.

Read more on how Big Pharma’s innovation rhetoric doesn’t hold up to scrutiny HERE.

Read more on bipartisan, market-based solutions to hold Big Pharma accountable HERE.