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Typically 15-20% of their expenses are spent on R&D. The cost of marketing is also about 15-20%. This is roughly the same as any large tech company. Compare Merck and Johnson&Johnson to Google or Intel.

http://www.google.com/finance?q=NYSE:MRK&fstype=ii

http://www.google.com/finance?q=NYSE:JNJ&fstype=ii

http://www.google.com/finance?q=NASDAQ:INTC&fstype=ii

http://www.google.com/finance?q=NASDAQ:GOOG&fstype=ii




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