Big Pharma - How much power do drug companies have? | DW Documentary
DW Documentary・24 minutes read
Martin Shkreli raised the price of the drug Daraprim significantly, highlighting the profit-driven nature of the pharmaceutical industry and its impact on healthcare policies. Despite controversies surrounding drug pricing and safety, large companies like Novartis and Roche continue to prioritize profits over public health concerns, leading to legal battles and high costs for essential medications.
Insights
- Martin Shkreli infamously raised the price of Daraprim by 5,000%, highlighting the profit-driven nature of the pharmaceutical industry and its impact on healthcare accessibility.
- Pharmaceutical companies like Novartis and Roche prioritize profits over public health, exemplified by pricing strategies, marketing tactics, and legal battles that reveal a systemic issue within the industry.
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Recent questions
How did Martin Shkreli impact the pharmaceutical industry?
Martin Shkreli significantly impacted the pharmaceutical industry by raising the price of the drug Daraprim by 5,000%, from $13.50 to $750 per pill. This action drew attention to the profit-driven nature of pharmaceutical companies and their influence on government health policies. Shkreli's justification for the price hike, citing the duty to maximize profits for shareholders, led to widespread backlash and earned him the title of the most hated man in America. Ultimately, his actions shed light on the need for transparency and accountability in the pharmaceutical sector.
What are some examples of controversial drugs released by pharmaceutical companies?
Some examples of controversial drugs released by pharmaceutical companies include Mediator and Depakine. Mediator triggered serious side effects, while Depakine, used for epilepsy, caused severe neurological issues in children when taken during pregnancy. Despite evidence of these risks, it took years for patients to be informed, leading to legal battles against the companies responsible. These cases highlight the importance of thorough testing and transparency in the pharmaceutical industry to protect public health.
How do pharmaceutical companies influence healthcare spending?
Pharmaceutical companies influence healthcare spending by steering it towards expensive medications, even when more cost-effective options are available. Companies like Novartis, Pfizer, Johnson & Johnson, Roche, and Sanofi dominate the industry and often prioritize profits over public health considerations. This can lead to situations where essential drugs become unaffordable for many patients, highlighting the need for regulatory measures to ensure access to affordable healthcare for all individuals.
What pricing strategies have pharmaceutical companies employed?
Pharmaceutical companies have employed pricing strategies focused on maximizing profits, often at the expense of public health considerations. For example, Gilead Sciences launched the hepatitis C treatment Sovaldi at $84,000 for a three-month course, causing outrage over the high cost. Similarly, Novartis marketed Kymriah, a gene therapy for leukemia, at 320,000 euros per patient, despite being discovered by publicly funded university researchers. These pricing decisions underscore the need for greater transparency and accountability in the pharmaceutical industry.
How have pharmaceutical companies engaged in illicit practices?
Pharmaceutical companies have engaged in illicit practices such as price-fixing to maintain control over the market and maximize profits. For instance, Novartis and Roche were fined in Italy and France for fixing prices of their products Lucentis and Avastin. Novartis, which owns a third of Roche, pressured doctors to use Lucentis over the more affordable Avastin, despite the latter being authorized in France. These actions highlight the need for strict regulations and oversight to prevent anti-competitive behavior in the pharmaceutical industry.
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Summary
00:00
Pharmaceutical Industry Profits Drive Drug Price Hikes
- Martin Shkreli, former CEO of Turing Pharmaceuticals, hiked the price of a drug by 5,000%.
- The pharmaceutical industry is driven by profit, influencing government health policies significantly.
- Pharmaceutical companies benefit from publicly funded research but steer healthcare spending towards expensive medications.
- Daraprim, an essential drug, saw its price increased from $13.50 to $750 by Martin Shkreli.
- Shkreli defended the price hike, stating maximizing profits for shareholders was his primary duty.
- Shkreli's actions led to him being labeled the most hated man in America and later convicted of securities fraud.
- Large pharmaceutical companies like Novartis, Pfizer, Johnson & Johnson, Roche, and Sanofi dominate the drug industry.
- Some drugs released by pharmaceutical companies trigger serious side effects, like Mediator and Depakine.
- Depakine, a drug for epilepsy, caused severe neurological issues in children when taken during pregnancy.
- Despite evidence of Depakine's risks, it took years for patients to be informed, leading to legal battles against Sanofi.
22:14
High-cost pharmaceuticals and price-fixing scandals
- To create syringes at a lower dose, a small bottle containing 16 milliliters is used to fill a batch of 50 syringes for ophthalmological injections.
- Repackaging the bottle's contents into an injectable form is crucial, ensuring complete sterility before administration by an ophthalmologist.
- The cost of making syringes was around 50 euros each, significantly less than the thousand euros for Lucentis, a similar product.
- Novartis and Roche, Swiss laboratories, marketed Lucentis and Avastin respectively, with Novartis pressuring doctors to use Lucentis over Avastin.
- Despite Avastin's authorization in France, the complex setup led to most patients receiving the more expensive Lucentis injections.
- Rush and Novartis were fined in Italy and France for illicit price-fixing of Lucentis and Avastin, with Novartis owning a third of Roche.
- Gilead Sciences launched Sovaldi, a hepatitis C treatment, at $84,000 for a three-month course, causing outrage over the high cost.
- Gilead's internal documents revealed pricing strategies focused on maximizing profits, with little regard for public health considerations.
- Novartis marketed Kymriah, a gene therapy for leukemia, at 320,000 euros per patient, despite being discovered by publicly funded university researchers.
