According to Richard T. De George in "Intellectual Property and Pharmaceutical Drugs: An Ethical Analysis" pharmaceutical companies justify their high profits by arguing that:
A)They are merely a business and as such have a right to their profits.
B)The market sets the price for drugs and that it is inherently inefficient to arbitrarily set prices.
C)The pharmaceutical industry is a risky business. They need high profits in order to secure investment needed for continued research and development.
D)The most expensive drugs always have cheaper alternatives and it is the choice of the consumer to determine if the added cost is justified.

Question

Quizplus · Accepted Answer

De George argues that pharmaceutical companies justify their high profits by claiming that they need those profits to support continued research and development, which is a risky and expensive endeavor. This argument suggests that without the promise of high profits, there would be less investment in new drug development, and therefore fewer new drugs available to improve public health. While there may be other factors influencing drug prices and profits, this argument is one of the key justifications offered by the pharmaceutical industry.