In hindsight, we realize that we could have been more precise when using the terms 'profit' and 'revenue' in our article 'Low-value approvals and high prices might incentivize ineffective drug development'. Total revenue is defined as the receipts from sales1. Profit is defined as the excess of the receipts from sales over the spending of a business during any period1. Hence, profit is the total revenue minus the costs of a business, over a given period. Profit calculations include credit transactions and asset revaluations as well as cash transactions and changes in the value of real assets1.
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