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Data: Company filings; Chart: Chris Canipe/Axios

The biggest drug companies generally spend more money on research than they keep in profits — although their profits are still healthy.

Why it matters: Drugmakers often invoke their research costs as they try to fend off any limits on their prices, and that spending isn't insignificant. But the industry's steady profit margins are still an attractive target for critics.

Yes, but: Drug companies have plenty of other costs besides research, including their ample marketing budgets.

  • Many of these companies spend less than a quarter of their total revenues on research and development.
  • And drugmakers are still wildly profitable — far more than any other part of the health care industry. They brought in just 23% of the health care industry's revenue in the third quarter of last year, but accounted for 63% of its profits.

Go deeper

Trump announces plan to distribute 150 million rapid coronavirus tests

President Trump announced on Monday that the federal government will distribute 150 million rapid, point-of-care coronavirus tests to states over the next few weeks, including to K-12 schools and vulnerable communities like nursing homes and assisted living facilities.

Why it matters: The Trump administration has stressed the importance of reopening schools in allowing parents to return to work and jumpstarting the economy.

Updated 57 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 p.m. ET: 33,217,895 — Total deaths: 999,273 — Total recoveries: 22,975,269Map.
  2. U.S.: Total confirmed cases as of 3 p.m. ET: 7,128,774 — Total deaths: 204,881 — Total recoveries: 2,766,280 — Total tests: 101,298,794Map.
  3. States: Cuomo extends New York moratorium on evictions until 2021.
  4. Business: Companies are still holding back earnings guidance.
  5. Health: The childless vaccine — Why kids get less severe coronavirus infections.
  6. World: India the second country after U.S. to hit 6 million cases.
57 mins ago - Podcasts

Digging into Trump's taxes

President Trump paid no federal income tax in 10 of the past 15 years, and just $750 in 2016 and 2017, according to a new report from the New York Times. He also is reported to have hundreds of millions of dollars in outstanding debts, most of which would come due during a second term.

Axios Re:Cap focuses on what is and isn't surprising about the revelations, plus how real estate developers are taxed, with Francine McKenna, an independent financial journalist and certified public accountant.

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