Regarding “Shkreli not alone in drug price ripoffs” by David Lazarus (Feb. 7): A business will liquidate products as they become less profitable. The prescription medication Cortisporin has been liquidated three times which shows unpopularity in sales and lack of profits. Mass production of an unpopular product would slow a corporation’s profits which is not considered a wise business decision.
Also note that branded companies pay more for research and development than generic companies do. These facts should have been emphasized for people who aren’t fluent in business – and they are valid explanations of the spike in price and why it is somewhat justified.
More importantly, corporations have a 39% tax rate on their income, and shareholders are taxed on their portions. This article was articulated to point the finger at pharmaceutical companies while U.S government should have had an honorable mention when evaluating the blame for greed.
Sam Sustaita, Fresno