Comment by twoodfin
9 hours ago
Outside of the occasional spike from a real blockbuster, pharmaceutical companies are not particularly profitable. Without those temporary (patent-protected) “windfall” profits, the business model doesn’t work.
9 hours ago
Outside of the occasional spike from a real blockbuster, pharmaceutical companies are not particularly profitable. Without those temporary (patent-protected) “windfall” profits, the business model doesn’t work.
To whatever extent they couldn't afford to reduce prices while staying in business, they also couldn't afford to spend those alleged billions of dollars on basic R&D or stock buybacks.
Investing in potential future blockbusters and encouraging investors to value the equity by returning some fraction of profits is the business model.