As of Tuesday, October 17, 2017
Big Pharma games the patent and regulatory systems of “drug market” to create monopolies over their products. Competition from both generics and brand-name drugs does not exist. In recent years Pharma bought out most generics and raised prices astronomically. They use taxpayer resources through the NIH and other public research facilities.
Since taxpayers support pharmaceutical companies by funding public research, why do we not have the public sit on their boards?
Pharma claims that it needs high profits to keep inventing new drugs, but it spends more of its profits buying back its own stock than increasing investment in R&D on new drugs. Their executives are incentivized to make profits any way they can because they are rewarded by high stock prices and bonuses.
Trump drafted an executive order on drug prices. He called for deregulation of the FDA. But a pharmaceutical lobbyist wrote it. Thus, it failed to materialize.
We need a new structure of corporate governance that ensures the ethical responsibly of drug makers to do what they are supposed to do: create high-quality, low-cost products for the national interest.