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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
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