I honestly don't know how the industry spends its funds, in terms of the proportion that goes into advertising versus basic science research, etc. I think things are changing markedly with the emergence of biotech drugs, etc.
What I would say is that eight or nine years ago industry reported that it cost them $300 million to produce one drug. Understandably, there are many failures along the way. Now that figure is up to $800 million per new drug. I'm in no way disputing that those figures are correct; I'm just saying, when does that increase end? We were perhaps under the impression that the genetic revolution would make the discovery of drugs more efficient. It sure doesn't look like that's the case.
As for what goes into those increased costs, you should ask the pharmaceutical industry. I don't know.