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Trends and Indicators in the Changing Health Care Marketplace
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Section 1: Health Spending and Costs, Including Prescription Drugs
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21  < previous
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Exhibit 1.21: Profitability Among Pharmaceutical Manufacturers Compared to Other Industries, 1995-2004
For every year from 1995 through 2002, the pharmaceutical industry was the most profitable industry in the U.S. Since 2002, however, its profitability has declined, with drug companies ranking as the third most profitable industry in 2004 (15.8%), with mining, crude-oil production the most profitable industry (22.1%). Drug companies were three times more profitable than the median for all Fortune 500 companies in 2004 (15.8% compared to 5.2%).
 
 

Notes: Percent is the median percent net profit after taxes as a percent of firm revenues for all firms in the industry. The second ranked industry for each year shown was commercial banks.

Source: Kaiser Family Foundation and Sonderegger Research Center, Prescription Drug Trends: A Chartbook Update, November 2001, Exhibit 4.11, at http://www.kff.org/insurance/3161-index.cfm, updated with data from Fortune, Fortune 500 Industry Rankings: April 14, 2003, p. F-26 (2002 data), April 5, 2004, Vol. 149, No. 7, p. F-26 (2003 data), and April 18, 2005, Vol. 151, No. 8, p. F-28 (2004 data).

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Section 1: Health Spending and Costs, Including Prescription Drugs
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21  < previous
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Trends and Indicators in the Changing Health Care Marketplace
Information provided by the Health Care Marketplace Project.

Publication Number: 7031
Information Updated: 02/08/06

 

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