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  Factual Howard and in context.
  
  These are well run companies Howard and whenever some people rant about so-called excessive profits rarely is there any demonstrable substance. Once again we have to look are return against capital and add a risk premium. Whatever you say there are huge costs and risks involved in developing and testing drugs.
  
  Take Pfizer for one thing. I quote a recent article on their performance:
  
  """Shares of Pfizer (PFE), the world's largest pharmaceutical company, experienced a bit of a slide following its mediocre Q4 2011 report on January 31, which I examined in greater detail in my last article about the company. Lipitor's expiration in November 2011, naturally contributed a lot to the relatively weak revenue from Pfizer's pharmaceutical division, as expected. This is including very favorable conditions in the forex market, which has softened the blows to the biopharmaceutical division's quarterly numbers.
  
  Revenue for the cumulative year of 2011 relative to 2010 ended up growing only 1% as a result, although net income increased 21% in 2011 due to some strong cost-cutting efforts by the company. The company's net profit margins stand at about 8.5%, so there is enormous room for improvement and hence share appreciation based on company fundamentals. The current P/E ratio of 19.5 won't last much longer if Pfizer continues its renewed efforts on bottom-line growth."""
  
  This article alone demonstrates that such companies are far from cash-cows and it is a very difficult business to operate in. Margins are clearly tight and Foreign Exchange (Forex) alone can have a big impact on margins in either direction.
  
  So, what is this absurd verbage about excessive profits then? margins of 8.5% excessive? No way.

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