Pharma CEO: We’re in Business of Shareholder Profit, Not Helping the Sick

[Ichingcarpenter]

Last month, Martin Shkreli became a household name. The CEO of Turing Pharmaceuticals is now infamous for raising the price of a newly-acquired drug to $750 a pill. He also explained in an interview that his company was not alone in acquiring drugs currently on the market to raise their price and, in turn, rapidly drive up their stock price.

Enter J. Michael Pearson, The current CEO of Valeant Pharmaceuticals who recently said that his company’s responsibility is to it’s shareholders, while making no mention of his customers who rely on his drugs to live.

“If products are sort of mispriced and there’s an opportunity, we will act appropriately in terms of doing what I assume our shareholders would like us to do.”

Already this year, Valeant has increased the price of 56 of the drugs in its portfolio an average of 66 percent, highlighted by their recent acquisition, Zegerid, which they promptly raised 550 percent. Not only does this have the unfortunate side effect of placing the price of life-saving drugs out of reach for even moderately-insured people, but it has now begun to call into question the sustainability of this rapidly-spreading business model.

In an interview with CNBC, Pearson defended his business practice of acquiring drugs instead of investing in research and development.

“My primary responsibility is to Valeant shareholders. We can do anything we want to do. We will continue to make acquisitions, we will continue to move forward.”

http://usuncut.com/class-war/valeant-ceo-shareholder-profit/

Boy........ that trade deal is looking better and better
but not for humanity or the planet

[Yallow]

1. And Republicans Say Too Much Regulation

Let businesses be free to have a free market and charge what the
market will bear I tell you. Free market all the way!!!

Sounds great right?

[Ichingcarpenter]

3. Republicans are just serving their masters

at least they are upfront about it not like others
that sell us out and put of a facade of progressive dogma that ultimately shows their deceit in their actions while harping populist rhetoric.

[CanSocDem]

15. And Obamacare serves who...???

Aside from being owned by PharmaINC that is....




.

[passiveporcupine]

2. This just makes me furious.

[madokie]

4. As Mother would say

He sure said a mouth full there, huh

[Demeter]

5. That's a good way to destroy your business

Disrespecting your customer base....they can find someone else, you know, and will.

[spinbaby]

6. Unless you have a monopoly on a life-saving drug

nt

[Demeter]

7. Monopolies can and will be broken

[sub.theory]

28. They haven't so far

These companies have exclusive patent rights to life saving drugs and you either pay whatever they want or you die. This is the reality of the pharmaceutical industry today. It's legal extortion and it must be stopped.

[Demeter]

33. I was going to try to educate you, but you are going on Ignore, instead

I really don't have time for your sophistry.

[sub.theory]

34. I accept your surrender

Ok, go hide in the closet and suck your thumb. If you can't handle an innocent response like I made you're made of far too fragile stuff for a political message board.

I'm just heartbroken to be on your ignore list, btw.

[Ichingcarpenter]

8. Or Oligarchic collusion between drug companies

that help write trade deals

We see this in the banking industry, pharmaceutical industry, copyright legalities and telecommunication industries among others

[jtuck004]

16. You mean like the wildly profitable cigarette manufacturers? n/t

[Demeter]

19. The ones that kill off their customers?

And now, the potential customers are killing it off?

Change is slow sometimes, but it is inevitable. What cannot continue, will not.

[jtuck004]

20. Note that the government had to step in to stop it - and they are still wildly successful overseas

where they moved after we began to crimp their profits. But as bad as they are, an addict looking for their fix has nothing up against the dying person looking for a cure.They will pay anything, and sometimes kill anyone who gets in their way.

Check the petroleum companies. We are burning the planet under us, leaving nothing except misery and starvation, possibly as soon as for our grandchildren and their kids. 5 cents a gallon, dollar a gallon, $4 a gallon - keep going up, we keep building more cars and drivers.

That company knows it gets its money from governments and insurance companies who are also not in the business of helping people, so it is doubtful much will be done.

[KG]

9. that's why forcing everyone to buy corporate health insurance is such a great idea!

the 'uniquely american' solution. what could go wrong?

[still_one]

10. Valeant is a Canadian company.

[Ichingcarpenter]

12. Valeant is a a multinational specialty drug company

Its headwaters may be based in Canada but that doesn't mean shit these days and you know it.

Just like your Hillary being a New Yorker




Valeant was in fact founded as a United States business

https://en.wikipedia.org/wiki/Valeant_Pharmaceuticals

[still_one]

22. "your Hillary"? What does that have to do with anything? Also, you don't know who I am voting for

You want to talk politics, take it to the General Discussion Primary forum

[blackspade]

11. These people are disgusting scum.

Talk about being devoid of a conscience.

[NCjack]

13. This statement is why we need to get capitalists out of the businesses

that involve human health and pain. The shareholders need to be the citizens.

[KansDem]

14. It's time to impose eminent domain

For the public good...

The right of a government or its agent to expropriate private property for public use, with payment of compensation.

It's time to stop these greedy sociopaths

[brer cat]

17. There is too much abuse by drug companies.

"Shareholder value" shouldn't be allowed to trump availability of life saving treatments. Regulation is needed, which works in other countries to keep the prices much lower. This is a good article from WAPO. Two take-aways for me are:

Very often, the original discovery occurs in a university lab with public funding from the National Institutes of Health (NIH), then licensed to a start-up company partly owned by the university and then to a large company. There is very little innovation at the big drug firms.

Moreover, the major drug companies are hardly strapped for money to cover their R&D: A look at their annual reports shows that they spend more on marketing and administration than on R&D.

https://www.washingtonpost.com/opinions/why-do-drug-companies-charge-so-much-because-they-can/2015/09/25/967d3df4-6266-11e5-b38e-06883aacba64_story.html

[Doctor_J]

18. yep. same with health insurance CEO.

Unless you are a major shareholder, you don't matter - at all - to these people.

[Octafish]

21. Mussolini would approve.

Of Valeant and all the violence.

[glinda]

23. Doesn't this rise to the level of a crime being that it

endangers not only the individual but also possibly others? Seems there should be an International arrest warrant issued.

[mike_c]

24. this will continue, and indeed it will become even worse...

...until the torches and pitchforks come out.

[restorefreedom]

25. he made a beautiful case

for a sanders presidency

[questionseverything]

26. yes somethings are too important for capitalism

healthcare is one of those things

[restorefreedom]

31. agreed. as bernie says it is a right for all. nt

[sub.theory]

27. At least he's honest

That's why we need mandatory price controls to prevent this kind of gouging. Anyone who doesn't like that can quit or sell their shares and go into a sector where lives and health are not at stake. Any company that refuses to agree to price control oversight will be punished by immediately, and permanently surrendering all patent rights which are entirely bestowed by the decree of Congress.

[cantbeserious]

29. Know Thy Enemy - Oligarchs, Corporations, Banks And Their Media Minions And MIC Henchmen

eom

[restorefreedom]

32. succinct and dead on. nt

[procon]

30. Unfortunately, he's right. That's how capitalism is supposed to work.

At least in the US, a company is obligated by law to make the maximum profits for their investors. So if they can make a few more bucks by legally screwing over kids with cancer or overpricing your granny's heart pills, they not only want to do it, they take great pride in doing that, and they must constantly invent new ways to fleece the public -- all legally, of course -- or the government will join suit with the investors to recoup their lost sheckles.

[hifiguy]

35. This slimy fucker needs a shave

from the shoulders up. Yesterday.

[rhett o rick]

36. Don't blame him, blame ourselves for not regulating corporations. Thinking

they are going to be altruistic is absurd.

[totodeinhere]

37. Of course he feels that way. That is the nature of unfettered capitalism.

He was put in his position to maximize returns for his shareholders.

The only way to stop this is for the government to step in and regulate prices. Until that happens this will continue.