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Expand chart
Source: Axios analysis of company financial documents; Chart: Chris Canipe/Axios

Ten companies controlled half of the health care industry's $50 billion of global profit in the third quarter of this year, according to an analysis of financial documents for 112 publicly traded health care corporations. Nine of those 10 companies at the top are pharmaceutical firms.

The bottom line: Americans spend a lot more money on hospital and physician care than prescription drugs, but pharmaceutical companies pocket a lot more than other parts of the industry.

By the numbers: The health care industry's $50 billion of profit came from $636 billion of revenue, equating to a cumulative profit margin of almost 8%. Those are the highest figures of the past four quarters.

  • Approximately 63% of the profit total went to drug companies, even though they collected 23% of the revenue — numbers that mirror our past analyses.
  • Pfizer had the highest profit total ($4.1 billion) of any publicly traded health care company in the third quarter. Pfizer also said it will go back to its "normal" routine of raising drug prices after a public skirmish with President Trump.
  • Of the 19 companies that tallied at least $1 billion of third-quarter profit, 14 were drug companies. The others were either health insurers (UnitedHealth Group and Aetna) or involved in the drug supply chain (Walgreens, CVS Health, Express Scripts).
  • The analysis does not include not-for-profit hospital systems, but early returns still show the biggest systems have a lot of money.

Between the lines: The Republican tax law, which slashed the corporate tax rate, also continues to bolster the industry.

  • Drug firm AbbVie paid $14 million of income taxes on $2.76 billion of pre-tax earnings in the third quarter — an effective tax rate of just 0.5%. Pfizer's effective tax rate in Q3 was 1.6%.

The big picture: The health care industry arguably has more financial power now than at any point in its history, and a split Congress likely won't change that in the short term — even though patients are fed up with the system.

Go deeper

Feds investigating alleged scheme to illegally finance Collins’ reelection bid

Sen. Susan Collins. Photo: SARAH SILBIGER / Getty Images

Federal prosecutors are investigating what they call a massive scheme to illegally finance Sen. Susan Collins' 2020 reelection bid, Axios has learned.

What's happening: A recently unsealed search warrant application shows the FBI believes an executive with a Hawaii defense contractor illegally funneled $150,000 to a pro-Collins super PAC and reimbursed family members' donations to Collins' campaign. There's no indication that Collins or her team were aware of any of it.

Mapped: Confederate monuments over time

Data: Southern Poverty Law Center; Note: There are some monuments with unknown dedication dates and they are not represented in the bar chart; Map: Michelle McGhee/Axios
Updated 3 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Annelise Capossela/Axios

  1. Health: Several states report zero COVID deaths for the first time in months — CDC says schools should still universally require masks and physical distancing.
  2. Politics: New York to lift mask mandate for vaccinated people — CDC director says politics didn't play a role in abrupt mask policy shift.
  3. Vaccines: Sanofi, GSK COVID vaccine shows strong immune response in phase 2 trials — Vaccine-hesitant Americans cite inaccurate side effects — 600,000 kids between 12 and 15 have received Pfizer dose since FDA authorization.
  4. Business: How retailers are responding to the latest CDC guidance — Delta to require all new employees be vaccinated — Target, CVS and other stores ease mask requirements after CDC guidance.
  5. World: World's largest vaccine maker expects to resume exports by end of 2021 — Biden administration to send 20 million U.S.-authorized vaccine doses abroad.
  6. Variant tracker: Where different strains are spreading.