The biopharma industry is failing Americans, economically and medically.
U.S. biotechnology and pharmaceutical companies, like all for-profit corporations, have a primary duty baked into their corporate charters: maximize profits and shareholder value. Unlike companies in other industries, however, biopharma companies have a special advantage: their products have market exclusivity upon Food and Drug Administration approval, which can be leveraged to maximize pricing for a specified period. During that time, they do not need to worry about competition on product pricing, quality, or supply capacity in order to maximize profits.
That means biopharma companies have had little incentive to reduce research and development or operating costs, especially in bull markets. Shareholders have had a happy ride as the industry has delivered high returns on investment, despite the touted high R&D risks and costs.
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