Read at Ars Technica
Pharmaceutical companies are spending more on executive compensation and stock buyouts than on research and development for new drugs, according to a hearing held by the Senate Committee on Health.
"In other words, these companies are spending more to enrich their own stockholders and CEOs than they are in finding new cures and new treatments," he said.
While pharmacy benefit managers (PBMs) have an impact on drug pricing, their profits are small compared to pharmaceutical profits. The heart of the problem lies in pharmaceutical greed, patent gaming, and powerful lobbying, according to a Senate report released this week.
"We are aware of the many important lifesaving drugs that your companies have produced," said the committee to the CEOs of three pharmaceutical companies.
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