|
Mystapitt (March 29, 2008 at 3:34 pm)
One of the most vibrant and important American Industries. People just don't like the idea of having to pay for medicine. They would rather spend it on eating out or having a GPS in their car.
scienterprize (March 21, 2008 at 11:38 pm)
Slight defending for pharma, but of course the opposing views are valid if they are extreme, but for all fairness, please read to have a second opinion.True comment about Pharma industry to an extent from the video, but if you think about it, why would a puiblically traded company not want to make high-margin profits? They ought to while the market permits... for simple reasons:
scienterprize (March 21, 2008 at 11:38 pm)
1) R&D expenses without a doubt is an inherent cost of the development of an innovative drug with potential therapeutical value. And R&D costs means a company needs to make good profit to sustain the continual research in a vast range of therpeutical categories. Please realise each clinical trial is very expensive in
scienterprize (March 21, 2008 at 11:37 pm)
nature (for design and recruitment of patients) and registration for NDA with FDA is not only costly but also time consuming. Any failure during development programme can induce a significant loss, which can only be offset if there are profits. Yes they make more profit than those spend in R&D, of course, you need to compensate for employees, management and investors, and have cash ready for potential M&A and contingency! Think if a drug fails during or post-marketing,
scienterprize (March 21, 2008 at 11:37 pm)
this causes much damage to the firm and disappoints investors, and ultimately shareholders lose confidence in the firm, and them exiting from investment just means no adaquate cashflow and capital for further operations, hence, no new drugs.2) Marketing cost - Having a good product but without exploitation of marketing power to promote and sell their drugs, means the drug is worth little. The truth is
scienterprize (March 21, 2008 at 11:37 pm)
depsite having a great (or just good) product, you need to persuade clinicans to purchase before anything is set. Payment for salesforce is huge, of course, simply becos not all drugs will sell. And for those that don't sell, the pharma has made a loss!
scienterprize (March 21, 2008 at 11:36 pm)
3) Restructuring cost - Pharma are not always profitable. The industry is chamging with more stringent regulatioin by authorities and increase competition of the sector. It is becoming more and more difficult to discover and market real
scienterprize (March 21, 2008 at 11:36 pm)
blockbusters.... and the fact the way business are designed, they face tremendous threats from patent expiry and generic erosion. This decays sales and revenues, and at the end, profits are needed to be made to sustain investors interest, in addition to treating patients (the prime purpose)!
scienterprize (March 21, 2008 at 11:36 pm)
Pharma is having a tough time in 2008. No doubt one would want good drugs to be readily available to patients in need, at an affordable price. But be reaslistic, here in the modern world we need to also think about the involvement of economic impact,
scienterprize (March 21, 2008 at 11:35 pm)
however harsh this fact is. If there was no money in the first place, you will not have the resources to develop and market new drugs and no sustainable drug discovery innovation! You do not want to upset investors who have ownership of the firm... sad but this is how the world is ran, and there is never a perfect solution to all stakeholders.... |
