Accounting and Finance in International Business The opening case explores four large pharmaceutical companies and their role...

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Accounting

Accounting and Finance in International Business

The opening case explores four large pharmaceutical companiesand their role in the rising costs of healthcare particularly inthe United States. The four companies, Pfizer, Novartis, Bayer, andGlaxoSmithKline, all date back to the mid-1800s and have annualrevenues of at least $39 billion and assets of at least $77billion. Taken together, the four companies employ around 400,000people and serve customers in 195 countries. Discussion of the casecan begin with the following question:

Why have companies like Pfizer, Novartis, Bayer, andGlaxoSmithKline recently come under so much fire in the UnitedStates? Why are prescription drug prices so high?

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For years pharmaceutical companies like Pfizer Novartis Bayer and GlaxoSmithKline have claimed the primary reason behind high drug prices in the country are the amount these businesses must spend on research and development These companies argue they must maintain high drug prices to protect the strength of the industry Essentially these pharmaceutical businesses claim they must charge so much because without it they wouldnt be able to develop and make new drugs However research into the industry contradicts these companies claims According to the research these companies use profits reaped from their exorbitant prices to wheel and deal with Wall Street instead of See Answer

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