Actually prescription drugs are generally sold expensively worldwide, especially in North America and receive enormous profits, regardless of the advertising. Companies actually have enormous budgets dedicated to advertising, in countries where it is legal. They are required to spend this money because they have to compete with other companies that are advertising their products, but if there were no advertising, they could spend the money on more research.  The pharmaceutical industry has been the most profitable industry in America for each of the past 10 years and, in 2001, was a five-and-one-half time more profitable than the average for Fortune 500 companies [1] . Moreover, in Canada, the sale of a typical patented branded drug would bring about a profit margin of almost 70% [2] .  “U.S. Pharmaceutical Launches: Marketing Spend and Structure" reveals that the average blockbuster brand in the United States allots 49% of its budget to fulfill advertising needs. This hefty allotment is attributed to the fact that most blockbuster brands target a mass-market audience that requires large-scale advertising. [3]  Advertising reduces the incentive for research into new drugs as companies have found the returns on investment in advertising are better than those on research and development. This is particularly the case as it has become increasingly difficult to find a ‘blockbuster’ drug (because increasingly, new drugs are minor adjustments to existing ones). Significant changes to the way drugs are researched are needed for scientific advancements, but such changes are expensive and carry high risks of failure. It is of much lower risk is to the manufacturer to relicense existing drugs for new markets and new consumers, thereby allowing them to re-brand the drug [4] .  So they do not use the money mainly for research for new therapeutics, but spend nearly half of it on advertisements to maximize their profit even more.  [1] CIBC World Markets (2003) 2003 Investors' Guide to The Canadian Drugstore Industry, published 2003,  , accessed 07/30/2011  [2] Families USA (2002) Profiting from Pain: Where Prescription Drug Dollars Go,  , accessed 07/30/2011  [3] PR Newsmedia – United Business Media, Pharmaceutical Advertising: United States vs. Europe, published 12/22/2010,  , accessed 07/29/2011  [4] Turning ideas into products- a pharmaceurtical paradigm shift.