• Marcia Angell’s book exposes how the pharmaceutical industry has transformed into a highly profitable sector, often prioritizing profits over public health.
• The 1980 Bayh-Dole Act allowed drug companies to patent and profit from publicly funded research, creating a system where the public bears the research costs while companies reap financial benefits.
• Pharmaceutical companies spend significantly more on marketing and administration than on research and development (R&D), with nearly 77 percent of FDA-approved drugs being “me-too” drugs offering no significant therapeutic advantage.
• The Prescription Drug User Fee Act of 1992 created a conflict of interest, leading to faster and less rigorous drug approvals, resulting in safety concerns and recalls
• Angell advocates for accountability and reforms to ensure affordable, effective medications, emphasizing the need for a balance between industry profits and public health.

In her book “The Truth About the Drug Companies: How They Deceive Us and What to Do About It,” Marcia Angell exposes the pharmaceutical industry’s transformation into a profit-driven juggernaut, often at the expense of public health.

The industry, once a modest player, became a financial powerhouse in the 1980s, thanks to a combination of shifting public attitudes and government policies that favored corporate interests. Today, it stands as one of the most profitable sectors in the United States. But its success has come with significant costs to consumers and the healthcare system.

The turning point for the pharmaceutical industry came in 1980, when the Bayh-Dole Act allowed universities and small businesses to patent discoveries from taxpayer-funded research conducted by the National Institutes of Health. This enabled drug companies to license these innovations, effectively privatizing publicly funded research.

While this was a boon for pharmaceutical profits, it created a system where the public shoulders the cost of research while companies reap the financial rewards. For example, the cancer drug Taxol – developed with $183 million in tax dollars – generated billions for Bristol-Myers Squibb. Meanwhile, the public received only a measly $35 million in royalties.

Despite the industry’s claims of prioritizing research and development (R&D), the reality is starkly different. A significant portion of pharmaceutical budgets is allocated to marketing and administration, including advertising, promotions and executive salaries. In 1990, 36 percent of sales revenues went toward these expenses — more than double the amount spent on R&D.

Moreover, many “new” drugs are not innovative breakthroughs but “me-too” drugs, which are nearly identical to existing medications. Between 1998 and 2002, 77 percent of drugs approved by the Food and Drug Administration (FDA) fell into this category, offering little to no therapeutic advantage over older, cheaper alternatives. These drugs are profitable because they require minimal R&D investment and are aggressively marketed as superior, despite lacking evidence to support such claims.

The FDA’s leniency: A price too high for public health

The FDA, tasked with ensuring drug safety and efficacy, has also been compromised. The Prescription Drug User Fee Act of 1992 allowed drug companies to pay fees for drug reviews, creating a conflict of interest.

As a result, the FDA has become more lenient, approving drugs faster and with less rigorous evidence. This has led to the approval of drugs that are later withdrawn due to safety concerns, putting public health at risk.

The high cost of prescription drugs remains a pressing issue for consumers. Many Americans turn to Canada, where prices are significantly lower, but this practice is illegal and fiercely opposed by the industry.

Pharmaceutical companies argue that high U.S. profits are necessary to fund R&D, but the data tells a different story. The industry spends far more on marketing than on innovation, and price regulation in other countries has not stifled their ability to develop new drugs.

Angell concludes that the pharmaceutical industry must choose between prioritizing profits and serving public health. Consumers and policymakers must demand accountability and push for reforms that ensure affordable, effective medications.

The stakes are high: It is people’s health and financial well-being that hang in the balance. By shedding light on the industry’s practices, Angell’s book serves as a call to action for a more equitable and ethical healthcare system.

Watch this video about Marcia Angell’s book, “The Truth About the Drug Companies: How They Deceive Us and What to Do About It,” where she exposes Big Pharma’s profit-driven agenda.

This video is from the BrightLearn channel on Brighteon.com.

Sources include:

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