Over the years, big pharma giant Pfizer Inc. has faced constant bombardment from all sides and for good reason. From addictive “band-aid-type” drugs to skyrocketing drug prices, Pfizer CEO Ian Read has come under fire for receiving a gluttonous pay raise.
Bloomberg, in a 2017 financial filings report, revealed that Ian Read received $27,900,000 in compensation. Pfizer’s board apparently agreed to Ian Read’s significant pay raise because it would be a “compelling incentive” to delay retirement and keep him running the company.[1]
In 2016, the 65-year-old CEO’s total compensation was $17,300,000 – a whopping 61 percent difference from his most recent salary.[2] It’s also the reason people are in an uproar over drug prices…
Big Pharma’s History of Drug Price Hikes Is Nothing New
Believe us, we would love if everyone could opt for effective natural treatments. However, for people who do need Pfizer-produced drugs, the adage rings true: the rich get richer and the poor get poorer.
In January 2018, a FiercePharma analysis revealed that Pfizer had made 116 drug price hikes! While the increases ranged between 3 and 9.46 percent, Pfizer boosted the prices of twenty of its drugs by 9.44 percent.[3]
What’s more? These price hikes came after raising the prices of 91 drugs by about 20 percent between January and June of 2017. Unfortunately, no one should be surprised. According to STAT, similar patterns occurred in 2014, 2015, and 2016.[4,5]
Let’s put this into perspective and look at some of the biggest pharmaceutical companies’ drug price hikes. These numbers come courtesy of Wells Fargo’s David Maris and his team:[3]
- Pfizer: 116 price hikes between 3% and 9.46%
- Novartis: 75 price hikes between 2.9% and 9.9%
- AstraZeneca: 18 price hikes between 1.5% and 9.9%
- Eli Lilly: 12 price hikes between 1.5% and 9.91%
- Sanofi: 11 price hikes between 1.9% and 8.53%
- Bristol-Myers Squibb: 6 price hikes between 1.5% and 7.9%
- AbbVie: 5 price hikes between 8% and 9.7%
- GlaxoSmithKline: 4 price hikes between 3.11% and 9%
The Truth Behind Drug Price Discounts
Perhaps public outrage wouldn’t be so high if the nation was seeing real results. Despite a huge number of Americans taking these big pharma drugs, there has actually been a decline in the quality of healthcare and thus the overall wellbeing of Americans as a whole.[6]
“[Pfizer] takes a measured and responsible approach to pricing,” claimed the pharma giant’s spokesman.[3]
In reality, though, going through these assistance programs can be arduous and have lengthy vetting processes – time that people seeking medical help cannot always afford.
Discrepancies Between Health Care and Health Are Clear
A March 2018 study published in the Journal of the American Medical Association (JAMA) echoed those sentiments. The analysis explored how much money is spent on healthcare and sought to answer one question: Why is healthcare spending in the United States so much greater than in other high-income countries?[7]
Researchers found that, in 2016, what America spent on health care almost doubled that of 10 other countries. Now, the fact that a nation has the funds available to spend is nothing to be angry about.
However, what’s contributing to the national outrage of overpaid drug lords and skyrocketing drug prices is that spending more money has not necessarily translated to a healthier, less sick nation. As reported by Ars Technica:[2]
“[Researchers] found that the U.S. paid nearly twice as much but performed less well. The main drivers of higher prices, researchers found, were high administrative costs and devices and pricy medicines.”
As much as Big Pharma would love us to believe their obscene drug price hikes are driven by expensive research and development, one must call a spade a spade. The healthcare system is broken and corporate greed not only continues to cost people money but their lives.
Keep Reading: 5 Pharmaceutical Drugs That Immediately Destroy Your Health
