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Ethical Issues in the Pharmaceutical Industry

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Introduction

Several years back, the pharmaceutical sector was seen as a frontrunner in innovation and

had high importance for advancing healthcare and increasing life expectancy. The preliminary

studies led to the discovery of treatments that were effective against infections, cancer, and

pneumonia, among others. Through the creation of vaccinations, the pharmaceutical industry has

significantly cut down and, in some cases, completely eliminated the spread of highly dangerous

diseases. However, over the course of the last few years, their integrity has been replaced by

greed. The pharmaceutical sector has been struggling with an image problem for quite some time

now. Nowadays, the pharmaceutical industry is no longer recognized for its ability to find

treatment options; rather, it is notorious for market monopoly, unethical pricing, and advertising

directly to consumers. In my opinion, the pharmaceutical sector no longer cares about the people

who buy their products, and as a result, they ought to be investigated.

Reason For Supporting The Consumers

Consumers should be safeguarded against the pharmaceutical industry for a variety of

reasons. Among these is price gauging, which has recently become widespread. Turing

Pharmaceuticals recently purchased the United States right to a drug known as Daraprim, which

is utilized in treating toxoplasmosis, a parasite-borne sickness that can be fatal in newborns, and

boosted the cost by 5,000 percent to $750 for each tablet (1). The public was outraged by the

price increase immediately after the business purchased monopoly holdings on these formerly

inexpensive generic pharmaceuticals (1). Aside from the cost, there are instances of product

deception and encouragement of prohibited, off-label usage, as well as corruption. A Chinese

court determined GlaxoSmithKline guilty of the bribery of investigators and doctors in 2016 and

penalized the company about $3 billion (5). In addition, the Gallup poll published in 2015
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showed that the sector, which was once one of the most trusted by the people, is becoming

among the most loathed, alongside oil monopolies (2). Finally, there is the problem of deceptive

advertising. Currently, the pharmaceutical sector targets specific audiences, primarily baby

boomers, and will actively advertise on TV stations and on social media. These targeted

marketing initiatives directly affect hospitals, patients, and even insurance companies (1). This

kind of focused brand management raises healthcare expenditures for consumers. On the other

hand, the net profits of the pharmaceutical sector also increase. Therefore, due to the

aforementioned, it is clear that they do not care about their consumers but just the profits.

Companies Can Look After the Consumers and Their Interests

A company has to cater to both the interest of the consumers and those of its own,

especially in the Big Pharma industry. This is because companies have an obligation to take care

of the various consumers. According to UNCTAD, "businesses should refrain from fraudulent or

unfair conduct that misleads or negatively affects consumers" (3). This is part of CSR that every

organization should engage in to maintain its image. In addition, the industry deals with the

health of individuals, and therefore misleading the consumers poses a threat to their health.

According to Emanuel et al., the industry has to ensure accountability when it comes to the needs

and health of its consumers (4). Directly advertising to the various consumers deviates from this

since they just sell the drugs without considering the consumers. Lastly, by taking care of the

consumers, which is part of their obligation, the industry is likely to succeed in the long run. A

healthy consumer base ensures they continue to profit in the long run and positive relationships

between the industry and the clientele.

In sum, the pharmaceutical industry has been experiencing negative public perceptions

due to some ethical issues over the past few years. It is clear that consumers need to be protected
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by the various oversight authorities and agencies. In addition, the various industries need to be

taken accountable for their consumers' health and safety. This is the only way that the various

consumers will be protected.

Sources

1. Pollack, A. (2015). Drug goes from $13.50 a tablet to $750, overnight. The New York

Times. https://www.nytimes.com/2015/09/21/business/a-huge-overnight-increase-in-a-

drugs-price-raises-protests.html

2. Marshall, S. (2017). The Great Debate on the Ethics of Pricing in the Drug Industry. The

Sanford C. Bernstein & Co. Center for Leadership and Ethics Annual Leadership

Conference. Retrieved from

https://www8.gsb.columbia.edu/leadership/ethicsofpricing#_edn1

3. UNCTAD. (2021). World consumer protection

map. https://unctad.org/topic/competition-and-consumer-protection/consumer-

protection-map

4. Emanuel, E. J., Buchanan, A., Chan, S. Y., Fabre, C., Halliday, D., Heath, J., Herzog, L.,

Leland, R. J., McCoy, M. S., Norheim, O. F., Saenz, C., Schaefer, G. O., Tan, K.,

Wellman, C. H., Wolff, J., & Persad, G. (2021). What are the obligations of

pharmaceutical companies in a global health emergency? The Lancet, 398(10304), 1015-

1020. https://doi.org/10.1016/s0140-6736(21)01378-7

5. Barboza, D. (2016, November 4). Drug giant faced a reckoning as China took aim at

bribery (Published 2016). The New York Times - Breaking News, US News, World

News and Videos. https://www.nytimes.com/2016/11/02/business/international/china-

rules-glaxo-bribes-sex-tape-whistleblower-cautionary-tale.html