By: Rachel Thomas
Part 2 of the Valeant Pharmaceuticals Series
In a capitalist free market, the goal of business is to sell a product to satisfy demand. The company’s objective is to maximize profit, without breaking the laws of the land. This profit motive is generally accepted as a characteristic of the free market and rarely raises ethical questions. However, there are industries where social good may take precedent over profit. The pharmaceutical industry presents one instance.
The pharmaceutical industry is a unique and significant component of the international economy. It faces ethical ...
By Yucheng Lu
This case study is about Valeant Pharmaceuticals, a Canadian-based multinational pharmaceutical company. The company is under investigation for its pricing practices, which have allegedly resulted in extremely high prices on medicines in the U.S. market. Additionally, its inappropriate disclosure of inter-corporate relations alarmed investors, who are concerned about possible manipulation of the insurance system.
This case study finds Valeant’s behavior in both healthcare and equity markets to be unethical. Stakeholders should be aware of the risks associated with Valeant.
The Core Players:
The main players involved in the Valeant’s scandal are as follows.