There are some problems which are too big for the private sector to handle. I’ve given extensive arguments explaining why this is the case for climate change and why solutions will require public ownership of energy. However, there is another set of less well known problems which are going to require similar state action: those around pharmaceutical companies.
While there is a certain amount of hysteria and fear-mongering about “big pharma”, the drug companies are far from innocent. There are well known cases of companies withholding and manipulating data. Health authorities are periodically hit by shortages of vital drugs due to supply chain problems or cessation of manufacturing. Companies demand high prices for patented drugs and have even been jacking up the cost of generics. They demand for the legal monopoly that is patent protection in exchange for developing new drugs, yet still fail to invest in developing treatments for rare diseases. We see pharmaceutical companies raking in spectacular profits, claiming it is needed to fund research. However, almost all of them spend more on marketing their drugs than they do researching new ones and profits far outstrip investment on research. Continue reading