Who here thinks drug companies (pharmaceuticals) are altruistic...

[ProfessorGAC]

53. It's Part Of SG&A In Most Cases

SG&A are all the expenses to run a company not directly attributable to production or performance of finished goods or services.
Sales & marketing people, R&D, administration like HR, legal, etc.
Since these are legitimate expenses under GAAP, there are no taxes paid, because those costs are directly taken from top line revenue.
This is anything BUT unique to pharma.
As a member of R&D, quality, and technological management, not a dime I ever made was included in the cost of goods.
But, the company paid me out of revenues, just the same as a line worker's pay or a raw material.
That's how the accountants siloize the total nonproduction costs.
Almost no expenses to the company are taxable.
We don't tax revenues. We tax profits. Taxes on these costs, and wondering if their tax free is a wild goose chase.
Of course, they're not taxed!
Now, you might be able to understand why some drugs cost so much.
The salaries of hundreds of people for 2 or 3 years working on something generating zero revenue has to be recouped somehow.