A new report commissioned by the Pharmaceutical Research and Manufacturers of America breaks down U.S. spending on prescription drugs, showing that brand drugmakers keep only 39 percent of payments (based off of list prices) at the point of sale.

A few other takeaways from the report:

  • Of the remaining spending, 22 percent goes to the supply chain, or middlemen.
  • Another 20 percent goes to stakeholders like insurers and the government through rebates, discounts and fees.
  • The other 19 percent goes to generic companies.
  • When rebates, fees and discounts are taken into account, brand drug manufacturers kept only $219 billion of the $469 billion spent on drugs in the United States in 2015.

Why this matters: The pharmaceutical industry has been in the spotlight for rising prescription drug prices for the last year or so, but it wants to at least share the blame. This report helps show where all the money is going, giving the industry some ammo behind its claims that list prices don't tell the full picture.

Go deeper

2 mins ago - Podcasts

House antitrust chair talks USA vs. Google

The Justice Department filed a 63-page antitrust lawsuit against Google related to the tech giant's search and advertising business. This comes just weeks after the House subcommittee on antitrust issued its own scathing report on Google and other Big Tech companies, arguing they've become digital monopolies.

Axios Re:Cap talks with Rep. David Cicilline (D-R.I.), chair of the subcommittee on antitrust, about Google, the DOJ's lawsuit and Congress' next move.

14 mins ago - Economy & Business

Boeing research shows disinfectants kill coronavirus on airplanes

Electrostatic spraying of disinfectant. (Photo courtesy of Delta Air Lines)

Boeing and researchers at the University of Arizona say their experiment with a live virus on an unoccupied airplane proves that the cleaning methods currently used by airlines are effective in destroying the virus that causes COVID-19.

Why it matters: Deep cleaning aircraft between flights is one of many tactics the airline industry is using to try to restore public confidence in flying during the pandemic. The researchers say their study proves there is virtually no risk of transmission from touching objects including armrests, tray tables, overhead bins or lavatory handles on a plane.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Politics: Senate Democrats block vote on McConnell's targeted COVID relief bill McConnell urges White House not to strike stimulus deal before election.
  2. Economy: Why the stimulus delay isn't a crisis (yet).
  3. Health: Studies show drop in COVID death rate — The next wave is gaining steam — The overwhelming aftershocks of the pandemic.
  4. Education: Schools haven't become hotspots — San Francisco public schools likely won't reopen before the end of the year.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!