tomkins & associates  

drug recalls

The realities of pharmaceutical companies in the new millennium are quite simple. Drug companies are not consumer-friendly, which is why there have been so many drug recalls in the recent past and these recalls will continue. Realistically, drug recalls are likely to increase in the months and years to come because of the following business realities:

  • All drug companies are in a highly competitive industry frequently working on the same area of drug research.
  • The profits for new products are staggering.
  • Profits equal speed to deliver new products to the marketplace. Speed equals mistakes, sloppy testing, and commonly a premature release of new drugs to the consuming public.
  • Drug companies price their new products knowing that some percentage of them will cause harm; lawsuits will follow the harm and the drug companies will be forced to settle these drug-related claims due to the drug's premature release.
  • Negative public relations is a major business consideration for all drug companies, and lawsuits are the ultimate negative public relations outcome.
  • Settling recall lawsuits generally are the norm, not the exception. This is because the drug companies have already factored in the settlement amount when bringing to market a new drug.
  • Because drug companies are acquiring each other, thus taking on more debt, the acquiring companies need to support their stock price along with their profits; so, ever-increasing new products need to be brought into the marketplace as soon as possible. This speed to the market inevitably results in errors, which in turn result in recalls.

Serzone Lawyers | Arava Lawyers