Drug Companies Earn Up To Three Times Greater Rate-Of-Return Than Oil

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Drug Companies Earn Up To Three Times Greater Rate-Of-Return Than Oil

Contributed by TSCL member, Russell Watson, Birmingham, AL.

Just how profitable are the big drug manufacturers? Over the past ten years, the leading drug manufacturers have posted returns two to three times higher than leading oil companies. Here are a few notable numbers:

Drug Companies vs. Oil Companies:

Average Annual 10 Year Rate-Of-Return*

Drug Company	10 yr. Average Rate-Of-Return
Pfizer	29.9%
Merck	20.6%
Bristol Myers	20.3%
Abbot	18.0%
Lilly	17.6%
Oil Company
Exxon Mobil	16.9%
Chevron	14.1%
Texaco	11.0%
Phillips	10.4%
Atlantic Richfield	9.3%

*Source: Wall Street Journal, February 24, 2000

This article first appeared in Volume 6, Issue 1 of "The Social Security and Medicare Advisor" newsletter (November/2000). To receive future editions of "The Advisor" in its special, free e-mail version, please click here.