Oner Tulum

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Innovation vs Financialization: an Analysis on the United States as a Source of Innovation for European Big Pharma

Driven by the perspective of maximizing shareholder value (MSV), the U.S. biopharmaceutical industry has adopted a highly financialized business model. In such a model, the key metrics are stock-price performance, earnings per share, and dividend yield, supported by distributions to shareholders in the forms of dividends and stock buybacks. Such value extraction is incentivized by […]

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US Pharma’s Business Model: Why It Is Broken, and How It Can Be Fixed

Price gouging in the US pharmaceutical drug industry goes back more than three decades. In 1985 US Representative Henry Waxman, chair of the House Subcommittee on Health and the Environment, accused the pharmaceutical industry of “gouging the American public” with “outrageous” price increases, driven by “greed on a massive scale.” Despite many Congressional inquiries since […]

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