That TV show "Mr. Robot" covered exactly how this works. Only not in the pharma industry, but we *know* they do the same thing.
When the company finds out, or already knows that something might come back at them, in the form of a lawsuit. They invest a disproportionately large sum of money to make sure that they have assets which are gaining interest to offset a potential settlement. So, it minimizes their potential loss.
Vioxx went on the market in 1999, and was on the market until 2004, with a $2.5 billion dollars in annual sales. That's (5) years on the market at $2.5 billion per year for a total of 12.5 billion. The lawsuit required Merck to pay out $4.85 billion.
Even if you don't account for the potential backend investments, we *know* they make, Merck still walked away with a $7.65 billion dollar profit.
That'll teach'em! 🙄
The FDA and Big Pharma are a revolving door. They're all invested in each other. The FDA is really a criminal organization, because conflict of interest is never considered -- until someone sues. Even then laws are in place to protect the racket. It's legal racketeering.
The pharma regulatory system is NOT broken. The system was designed to make certain people LOTS of money. And it seems to be working just fine.
There is no "regulation" there is only the appearance of regulation. I believe that people are just now starting to realize that.
Pharma and the FDA learned how to slow walk the facts with the Vioxx debacle. No accountability, no ethics. https://www.reuters.com/article/idUSL09297266/
That TV show "Mr. Robot" covered exactly how this works. Only not in the pharma industry, but we *know* they do the same thing.
When the company finds out, or already knows that something might come back at them, in the form of a lawsuit. They invest a disproportionately large sum of money to make sure that they have assets which are gaining interest to offset a potential settlement. So, it minimizes their potential loss.
Vioxx went on the market in 1999, and was on the market until 2004, with a $2.5 billion dollars in annual sales. That's (5) years on the market at $2.5 billion per year for a total of 12.5 billion. The lawsuit required Merck to pay out $4.85 billion.
Even if you don't account for the potential backend investments, we *know* they make, Merck still walked away with a $7.65 billion dollar profit.
That'll teach'em! 🙄
The FDA and Big Pharma are a revolving door. They're all invested in each other. The FDA is really a criminal organization, because conflict of interest is never considered -- until someone sues. Even then laws are in place to protect the racket. It's legal racketeering.
The pharma regulatory system is NOT broken. The system was designed to make certain people LOTS of money. And it seems to be working just fine.
There is no "regulation" there is only the appearance of regulation. I believe that people are just now starting to realize that.