Replies to post #58798 on OWC Pharmaceutical Research Corp (OWCP)

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Pharma Industry Profit Margins


According to Yahoo! Finance’s industry summary, the average profit margin for generic drug companies as of April 2013 is 5.4 percent. The largest average profit margin is for major drug manufacturers at 18.4 percent. This group includes Pfizer, AstraZeneca and Bristol-Myers Squibb. For the "other drug manufacturers" category, which includes Teva Pharmaceutical Industries and Allergan, the average margin drops to 12.2 percent. These segments of the pharmaceutical industry have high barriers to entry due to high research and development costs tied to U.S. Food and Drug Administration compliance; these costs can exceed hundreds of millions of dollars.