High cost/sales rate leads to low profitability for multinational pharmaceuticals

Multinational pharmaceutical companies were observed to have low profitability due to high cost/sales rates.

According to the Yakup Shinmoon’s(www.yakup.com) analysis result of 2015 audit reports of 32 multinational pharmaceutical companies branched in Korea, their average cost/sales rate was estimated at 67%.

Sales cost is purchasing cost or manufacturing cost of goods and products against s...