Big Pharma says that lost profits from the 340B drug discount program impact investments in research and development. Really? That doesn’t square with a new Vox infographic that shows nine out of 10 major pharmaceutical companies spent far more on sales and marketing than R&D in 2013.
Johnson & Johnson spent $8.2 billion on research and development but blew more than twice as much on sales and marketing – a whopping $17.5 billion. In fact, in 2012, “pharmaceutical companies spent more than $24 billion marketing to doctors,” says Vox. That’s more than three times the size of the entire 340B program.
Meanwhile, many of the nonprofit hospitals that comprise the 340B program struggle to keep their doors open. Research and development are important for drug innovation and improving healthcare, but it’s not the 340B program that’s tying up these dollars. It’s the drug industry.