T. J. Kuhn | GxP Zone

Good Practice for the Pharmaceutical Industry from the Quality Assurance Perspective

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

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One Response to “Defending Pharma”

  1. 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-

    Like

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