Biotech Values

[jbog]

Dew, Big Pharma Problems


I'm not totally convinced you're on the right page referring to "what's wrong with big pharma". You might be right if you referred to "what"s wrong with American healthcare".

The business of big pharma is to sell a product at a price that puts a decent return on the bottom line, not to much or not to little.

As a example if Pfizer ran completely efficient in it's hayday with lipitor it would have made too much money and then it would have received the wrath of society and would have been forced to lower it's selling price. By running inefficient it could raise it's price and no one would complain. While Pfizer is a profitable company it isn't "out of line" with other companies of it's size (non-pharma's).

Now you might say this doesn't make any sense, until you apply it to merck within the last year. I've personally have seen Merck "tighten the reins" in their operation and henceforth even with all the vioxx problems I would say they are a healthier company right now. What it came down to is that the were able to use their prior inefficiencies as a piggy bank per se.

JMHO