The committee examined the spending data for the following drugmakers: AbbVie, Amgen, AstraZeneca, Bristol Myers Squibb, Eli Lilly, Gilead, GlaxoSmithKline, Johnson & Johnson, Merck, Novartis, Novo Nordisk, Pfizer, Roche and Sanofi.
The committee found that from 2016 to 2020, the 14 drugmakers spent $577 billion on stock buybacks and dividends, which was $56 billion more than they spent on research and development over the same period.
Assuming the 14 drugmakers maintain the same rate of spending, they will spend $1.15 trillion on stock buybacks and dividends from 2020 through 2029.
The report also found that from 2016 to 2020, the drugmakers’ compensation for their top executives totaled $3.2 billion, growing by 14 percent over that five-year period.
“Many drug companies spent a significant portion of their R&D budget on finding ways to suppress generic and biosimilar competition while continuing to raise prices, rather than on innovative research,” the committee said in a news release.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
