From 2011-2019, large drug companies had a return on investment capital of 17.3 percent, compared to the average ROIC across all other industries of 11.5 percent. (Photo: Shutterstock)
Pharma has been countering the call for government-mandated price restrictions by arguing that lower industry revenues would stymie development of needed drugs.
A group of researchers at the West Health Policy Center and Johns Hopkins Bloomberg School of Public Health say that's a lot of hooey–claiming they have the data to back that up.
"We find that large pharmaceutical manufacturers could endure significant revenue reductions, including the reductions considered in recent legislative proposals, while maintaining current research investments and still achieve the highest returns of any market sector," the researchers write in their white paper, "How Much Can Pharma Lose?"
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
