That's simply misinformation. The US government funds some of the basic research that produces candidate molecules. But the vast majority of the cost in drug development comes in phase 3 human clinical trials. Almost all of that is paid for by pharmaceutical companies, and many trials fail.
> Seven of the 10 largest drugmakers by revenue in 2020 spent more money on selling and marketing existing drugs than on research and development for new drugs, according to an analysis published Oct. 27 by America's Health Insurance Plans.
> GlaxoSmithKline spent $15 billion on sales and marketing in 2020 compared with $7 billion on research and development. Bayer spent $18 billion on sales and marketing compared with $8 billion for research and development. Johnson & Johnson spent $22 billion on sales and marketing, compared with $12 billion on research and development.
I think this is missing the point. I don't think anyone is arguing that pharma spends a lot on marketing and that this cost is passed on to consumers. Rather, the point being made is that the US system disproportionately funds pharma R&D. Meaning, if the idea is to have parity with other countries, at least one of several options needs to happen: 1) other countries start funding more R&D, 2) other countries drug prices increase, 3) we accept that less R&D occurs, or 4) we find alternative sources for funding R&D.
Glib answers like "just do what other countries do" don't address any of that.
At least according to ChatGPT, over 40% fail. If true that’s surprising, since you don’t start a Phase 3 unless a lot of very smart people are convinced it’s going to work, and lab results (including human) back that up.
