The twin events of an Obama presidency and a financial crisis rattled corporate America. Public anger put companies on the defensive. A liberal president vowing to punish firms that didn't aid his agenda got companies scared.
Fortune 500 execs could stand up for a free market that benefits consumers and shareholders, or hitch their cart to the new Democratic majority. Pfizer's Mr. Kindler is a case study in the hitch-and-hope mentality—a CEO who became the motivating force behind Big Pharma's $80 billion "deal" on reform, and industry support of ObamaCare. With that health agenda burning, the choice isn't looking so grand.
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Public anger over ObamaCare doesn't help the industry's reputation. Many Americans now view drug companies in the same light as "crony capitalist" banks or energy firms that turn to government to bolster the temporary bottom line.
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Mr. Kindler might take solace that he's not alone. Insurers, hospitals, utilities—many chose to accommodate a president whose health-care and climate agendas are now comatose. There's a lesson here for corporate America. Try standing up for the free markets and limited government that have always been the foundation of U.S. business. It might work out better.
The bet that executives such as Kindler made was a very cynical one - that government intervention would force people to buy their products and restrict their competitors.
I'm not one of those who is offended by profits in the industry, even large ones. I realize that the high prices charged for certain drugs are what ensures that future development and innovation occur. Absent this return, companies will not invest the massive amounts of money and other resources required to bring new treatments to those who need them. Some people would rather that drugs that are not affordable by all not be available to anyone, or believe that companies will still continue to develop new drugs without the return on their R&D investment, or that the government will be able to pick up this task if the pharmaceuticals cease making these investments. I strongly disagree.
On many occasions I have defended the pharmaceutical companies' right to make profits to friends, relatives and others. But it is hard for me to defend those who are willing to sell their souls to the state.
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