- Axios reported that top pharmaceutical companies have announced significant so called ‘buybacks,’ which benefit shareholders by driving up the value of their stock.
- Contributions to Republican Party have yielded a great ROI for pharma.
- This suggests that pharmaceutical companies have used these tax breaks to enrich investors, a decision that comes at the expense of lowering the price of prescription drugs, investing in research and development that could lead to new cures, or passing along savings to consumers.”
[inlinetweet prefix=”” tweeter=”” suffix=””]From 2006 through 2015, the 18 drug companies in the Standard & Poor’s 500 index spent a combined $516 billion on buybacks and dividends[/inlinetweet]. This exceeded by 11 percent the companies’ research and development spending of $465 billion during these years. [inlinetweet prefix=”” tweeter=”” suffix=””]Two examples are Gilead Sciences, which spent $27 billion on buybacks versus $17 billion on research, and Biogen Idec, which repurchased $14.6 billion in stock and spent $13.8 billion on research and development.[/inlinetweet]
[inlinetweet prefix=”” tweeter=”” suffix=””]The key cause of high drug prices, restricted access to medicines and stifled innovation, is a social disease called ‘maximizing shareholder value[/inlinetweet]”. Pharma CEO’s have made Wall Street their number one customer at the expense of patients.
However, one of the best ROI’s for pharma companies has been the contributions to the Republican Party. For example..
-[inlinetweet prefix=”” tweeter=”” suffix=””]Pfizer contributed $15.6 million to the Party between 1990-2017 and received a corporate tax cut of $38.8 million[/inlinetweet]
-Merck contributed $7.2 million and received a $12.3 million tax cut
-J&J contributed $5.6 million an received $12.9 in tax savings.
And we were foolish to believe that patients mattered first…