• The_v@lemmy.world
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    8 months ago

    In a research driven company, research is a basic operational cost. These are all sunk cost paid for by other products. Before the product is introduced all of the research has been paid for.

    So let’s take a look at this companies financials.

    https://finance.yahoo.com/quote/NVO/financials?guccounter=1

    Their cost of goods was 36 billion. Out of 232 billion in sales or around a 85% margin.

    It says they spent 32 billion dollars research.

    They claimed a profit of 104 billion dollars after spending 2x the total research bill on sales/marketing and admin (62 billion) in other research driven industries this would be around 1/2 research budget.

    They still made enough money to pay for more than 3 years of research.

    In better regulated industry where greed didn’t rule the day. They should be making less than 1/2 the gross income.

    This is pure greed based upon people’s suffering

    • brbposting
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      8 months ago

      Uhg!

      Is there more investment/interest/research due to those fat margins?

      • The_v@lemmy.world
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        8 months ago

        Nothing significant.

        There comes point where tossing more money at at a research topic does nothing. Certain stages in development just take time. There are bottlenecks in the development process that limit the speed.