Question

The Ethics of Global Drug Pricing case; Please answer the following questions.

1- What is the proper balance for pharmaceutical companies between delivering the fiduciary obligation of earning a profit for owners and providing lifesaving or life-extending drugs to customers? How much profit is too much profit and who determines the amount? How does that balance get achieved?

2- Should the United States consider other methods for controlling drug pricing, such as those used in some European countries? Are there other ways the United States might use market forces or incentives from government programs to control drug prices? Given that one of the most prevalent and persuasive arguments for relatively high drug prices is the high cost associated with research and development and regulatory compliance, is there a way to combat those costs?

3- What are your views on the role of patents in prescription medication? What is the proper balance of patent protection for costly research and development versus a lack of competition?

Answer 1

Ans 1: The proper balance for pharmaceutical companies between delivering the fiduciary obligation of earning a profit for owners and providing life-saving or life-extending drugs to customers is complex and difficult to break down. There is a point where there is too much profit and it is difficult to say who actually should determine the amount and how to achieve the balance. I am an advocate of small-government and would possibly like to see executives can only make 10x what their lowest-wage employee earns. Any extra profits for the company that becomes of this go toward more research and development to find cheaper products and possibly supplement/distribution programs for the less fortunate.

Ans 2: The United States could consider other methods for controlling drug pricing, such as those used in some European countries. There are ways the US could use market forces and incentives from government programs to control drug prices.

Ans 3: Patents are important for a period of time. If a company has spent lots of money attempting to come up with a medication that works, that company should be rewarded with exclusive rights or should take commissions for the use of the patents. The proper balance of patent protection for costly research and development versus lack of competition is that the patent-holding company should accept some form of compensation by another company to develop that drug or treat it like a public utility.