Questions for Revieww 1. Do pharmaceutical companies have a responsibility to di
ID: 362491 • Letter: Q
Question
Questions for Revieww 1. Do pharmaceutical companies have a responsibility to distribute drugs for free or at low cost in devel- oping countries? What are the main arguments for and against such an approach? What are the advan tages and disadvantages of giving drugs for free versus offering them at low no-profit prices? 2. What are the principal arguments of pharmaceutical companies that oppose making exceptions to IPR laws for developing countries? What are the argu- ments by NGOs and others for relaxing IPR laws?Explanation / Answer
Answer 1
From a Corporate Social Responsibility perspective and on moral grounds, I think that they should come forward to give back to the society, as people in developing and third world countries are living in miseries devoid of basic healthcare, and dying of diseases and epidemic. Large Pharmaceutical corporations earn billions in profits, and these profits come from the society, so it becomes a moral responsibility for them to help those who lack even the most basic resources of healthcare.
Arguments in favor/advantages
It’s a matter of moral and ethical obligation towards people who are less fortunate to suffer and die in absence of medicines, because they don’t have money. There should not be a price on life. Pharmaceuticals make medicines at very low cost and earn huge profit margins selling at full price, so they have the capability to sell these medicines at low profit prices to people who cannot afford to spend a large amount of money.
From another perspective, distributing free drugs to poor people is in the larger interest of society, because left unattended, epidemic will spread even to the developed countries and everyone will be affected.
Arguments Against/disadvantages
Pharmaceuticals companies spend heavily on R&D to advance medical research and find cures for incurable diseases, if they indulge in charity selling, it will impact their financial capability to carry on breakthrough R&D, which is more important for humanity and society at large
Another perspective is that distributing drugs for free could lead to uncontrolled distribution resulting in corrupt practices by market players to acquire the medicines for free or ultra low cost, in absence of effective mechanisms to trace the actual beneficiaries.
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