I don't get the comparison to commodity markets or markets for commonplace things like bread. There aren't any high barriers to entry in bread business, it doesn't require a lot of specialized skill or R&D, and consequently there is not a lot of room for profit.
Pharmaceuticals involve high liability, high costs, and highly skilled workers at least in the R&D area. I'm not sure whether the "net income" (it doesn't say profit) listed on that wikipedia page is net of R&D and net of taxes. Actual profit might be much smaller than it appears; if R&D is not included then the top firm has a profit of 8% and that may not include taxes. If they are only able to make bread-bakers profits they might as well just make bread and avoid all the hassle.
Comments
I don't get the comparison to commodity markets or markets for commonplace things like bread. There aren't any high barriers to entry in bread business, it doesn't require a lot of specialized skill or R&D, and consequently there is not a lot of room for profit.
Pharmaceuticals involve high liability, high costs, and highly skilled workers at least in the R&D area. I'm not sure whether the "net income" (it doesn't say profit) listed on that wikipedia page is net of R&D and net of taxes. Actual profit might be much smaller than it appears; if R&D is not included then the top firm has a profit of 8% and that may not include taxes. If they are only able to make bread-bakers profits they might as well just make bread and avoid all the hassle.