'If Grandma Is on the Table, No One Will Blink at the Price': A Former Drug Company Manager Explains Industry Price-Setting
The delusion has been created by the Koch Type Libertarians that Corporations will ever have the best interests of their customers at heart as without a Cusomer they would not be in business. In this fantasy world the “investor” is concerned about long term returns and wants a viable return on his investment over a given period of time.
This is not how it works. Shares are bought and sold at the speed of light in huge blocks by various fund managers working for various investment houses. They demand an immediate return as those owning the stocks will not be happy if their investment returns only 5 percent a year while another is returning 15 percent. It all about maximizing “shareholder value” over the short term, buying the stocks low, dumping them when high and then buying another stock that is low.
Under such a system the quickest and easiest ways to boost the level of a Stock is to cut costs and maximize revenues. This is coupled with Stock Buybacks. Ultimately it has nothing to do with saving lives. It just about garnering the largest revenues possible over the shortest period of time. Few Industries are as proficient at this as the Drug Industry as the so called “Free market” manipulated on thier behalf by Governments via Patent protections. In a true free market there would be no such thing. Few industries can squeeze blood out of a stone as readily as the Drug Industry as coupled with those Patent protections they are allowed to monoplize access to a Drug that can save a life and as the author stated most people will move heavan and earth in order to save a life of a loved one. Few industries on ths Earth can manufacture products and sell them to the Public that are totally ineffective at what they are claimed to do given the very nature of the reality of health care. It hard to prove a drug worked if a person dies 6 months after prescribed it when that persons death attributed to other causes and the “effectiveness” of the drug based on the false premise that “He would have died 6 months earlier without it”
The Drug industry has to be nationalized.
“But they will be under a world of hurt if they don’t…”
Doesn’t that quote establish mens rea for extortion?
Oh my, after reading this story and your conclusion that the Drug Industry needs go be “nationalized.” I am more attracted to the idea that these drug company leaders be “euthanized.” These are murderous people who see only dollar signs!
Ralph Nader has a site called Worst Bills/ Best Pills, and I would read it for my neighbor who was very nervous about drugs. The best advice was----"Don’t take any drug that hasn’t been on the market for at least 7 years. That seems like a good idea.
This is not an eccentricity of capitalism
This is its essence
Capitalism at its finest!
US law requires for profit corporations to maximize shareholder value…period. Failure to do so results in shareholder lawsuits that shareholders always win.
The only way to change that is re-regulation…a tough sell after four decades of rapid deregulation.