Defending Pharma
Posted by tjkuhn on October 29, 2009
As all of the discussion on Healthcare reform comes to a head, I think it warrants some comments from me regarding “The Greed of Pharma”. Let me start by saying that Pharma is a for-profit business like any other.
I think it is important to note that neither pharma (nor the insurance industry for that matter) has particularly high profitability (ROE %’s). The following industries have a higher ROE % (Return on Equity rating) than Pharma (21 of them, and in the order listed). Cigarettes has nearly triple Pharma’s profitibility (and the US Gov is a de facto share holder); Aerospace has double. So why would Pharma be expected to foot the healthcare bill (and squeal like a pig -to paraphrase Congressman Marion Berry of Arkansas) when there are so many other more deserving candidates?
Cigarettes
Aerospace/Defense – Major Diversified
Information & Delivery Services
Diversified Computer Systems
Cleaning Products
Beverages – Wineries & Distillers
Processed & Packaged Goods
Auto Parts Stores
Education & Training Services
Application Software
Personal Services
Food Wholesale
Industrial Metals & Minerals
Restaurants
Gas Utilities
Management Services
Personal Products
Personal Computers
Agricultural Chemicals
Diversified Communication
Electronics Stores
~TJK
Carl's Blog on FDA Stuff said
Tim-
I would like to note that consultants didn’t make your list:) I actually think that healthcare should be paid for with taxes, but most people don’t want to use the “T” word. There are a lot of good reasons to support the expansion of health care including an infusion of capital for the life sciences industry. The expansion of health care would expand research & development for most therapeutic area. Unfortunately I am pessimistic that it will happen. Oh well.
Good luck with your efforts at SQA.
Carl-