Gross margins are high. But net margins in pharma are not. They're still double what Amazon, Google, etc. make but that's because they assume significantly more risk than other sectors. It's around 14% vs 7% net. I heard elsewhere that net margins are closer to 20%, so that's why I went with the higher number.
If you want to lower healthcare costs in America without sacrificing profit margin, Congress needs to introduce legislation centered around tort reform, interstate competition and creative subsidies to encourage R&D -- perhaps something along the lines of no corporate income tax for 5 years for every FDA approved drug, with a pass-through provision that employees of said company are also exempt from federal personal income tax.
Until then, expect high prices and low profit margins...
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