Are These Drug Prices Ethical?

Maybe it is justifiable. It is difficult, but perhaps it is justifiable. Let me explain. Drug companies are companies. People often think of healthcare as some altruistic industry where a bunch of geniuses gather and work to rid the world of diseases. The healthcare industry, including drug companies, attracts talents that they do because it’s a great money-making machine. Just like Apple Inc., Pfizer Inc. answers to their shareholders and pays for top talents. However, let’s assume they don’t have to answer to anyone. Let’s assume they don’t have to make money. To keep the lights on, they would have to at least break even. Pfizer’s cost of R&D per new drug was calculated to be almost $8 billion in 2013. They need to make at least that to stay operational and continue to save lives. Do they make more than that per drug? Yes. Do payers like that? No. Is it justifiable? Maybe. — About the Author Roger Ma is a consultant pharmacist stationed in the exciting city of Toronto