Viewing a single comment thread. View all comments

kirlandwater t1_j03b13u wrote

Reply to comment by [deleted] in [OC] Visualising Pfizer's latest income statement. Pharmaceutical profit margins are notoriously higher than most other industries by giteam

Right, but that in-process R&D is just that, in process. PFE doesn’t deserve credit for this as it was already in the works prior to the acquisition. The acquired company had already spent/allocated the money.

And while it could be argued otherwise, these acquisitions continue to consolidate IP and influence upwards to a smaller number of massive companies. Which long term will not benefit consumers

Edit: even if in process R&D is included, their 10-K shows only $802m attributed to “restructuring and acsquisition related costs” for 2021. And Im not seeing it anywhere else on the income statement/balance sheet/or statement of cash flows.

For Q3, as you’ll see in OP’s infographic, in-process R&D adds another $502m for a total of $3.2b in R&D. Way below their net income of $8.6b.

1

[deleted] t1_j03e15o wrote

I get what you’re saying, but when you look at the total cost a company spends on R&D, you have to include acquired R&D. A company spending money internally on R&D isn’t really different from a company spending money on a company for its R&D

1

kirlandwater t1_j03eiq8 wrote

I added this as an edit on my previous comment but I’ll paste it here as well

Even if in process R&D is included, their 10-K shows only $802m attributed to “restructuring and acsquisition related costs” for 2021. This was already included in my quoted figure netting $21.98b in net revenue for last year. And Im not seeing it anywhere else on the income statement/balance sheet/or statement of cash flows.

For Q3, as you’ll see in OP’s infographic, in-process R&D adds another $502m for a total of $3.2b in R&D. Way below their net income of $8.6b.

1