Opinion | Lynn Stuart Parramore: 'The industry’s claims that high prices are vital to fund innovation are demonstrably false, according to economists who research how drug companies allocate money.' - NBCNewsTHINK
Meanwhile, executives paid in stock are incentivized to use corporate cash to manipulate stock prices. The buyback is a favorite way to do this — a controversial practice in which a company buys its own stock in order to reduce the number of shares available and thus jack up the price of those that remain. Through this financial sleight-of-hand,This is especially scandalous given that U.S.
Lazonick notes than while the Pelosi bill would be a step forward in asserting the federal government’s right to negotiate for lower drug prices, this kind of intervention still lacks a plan for pricing drugs that balances the need to fund drug development with the need to make drugs widely available and affordable.
Remedies could include policies such as banning stock buybacks, eliminating stock-based executive pay and placing public interest members on corporate boards – including people who have expertise in medicines and understand the interests of taxpayers, drug customers and the scientists and other employees who contribute to making drugs. Such policies would treat the root of the problem: business models that create perverse profit incentives to keep drug prices high.
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