Over at In the Pipeline, Derek Lowe makes an analogy, comparing the movie business to big pharma. The similarities, he writes, are that both incur most of their costs in R&D and marketing spending and blockbusters are hard to predict. The differences are that the barrier to entry is a lot higher for distributing new drugs and movies can make money longer than patented drugs. The single biggest breakdown to this analogy, he says, "are the salaries paid to the top stars, and their role in making a movie popular. I can't think of a clear correlate in the drug business."
Is Big Pharma Really Like Hollywood?
Nov 07, 2007