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?
Aerospace/Defense – Major Diversified
Information & Delivery Services
Diversified Computer Systems
Beverages – Wineries & Distillers
Processed & Packaged Goods
Auto Parts Stores
Education & Training Services
Industrial Metals & Minerals