Drug companies don’t make much money – just ask Mayor Bloomberg

Chief executives for major drug companies don’t make a lot of money. Know why? Because their companies don’t make a lot of money either.

Sure. Let that sink in for a moment.

The Associated Press reports that New York City Mayor Michael Bloomberg recently made this comment on his radio show: “Last time I checked, pharmaceutical companies don’t make a lot of money, their executives don’t make a lot of money.”

Last time he checked? Maybe around 1909?

But it’s all about perspective, isn’t it? Bloomberg’s personal fortune is estimated to be around $16.5 billion. So if someone makes less than $20 million per year, that must seem kind of sad to the mayor. I mean, how do you get BY on that?

Last year, Richard Clark, CEO of Merck & Co., made just over $17 million, while his company’s 2008 profit was a mere $7.8 billion.

Well things are tough all over.

During a commercial break in his program it appears Mayor Bloomberg realized just how hopelessly clueless his comments had been. After the break he acknowledged that some drug company CEOs “are making a decent amount, more than a decent amount of money.”

Yeah, $17 million per year is fairly decent I guess. You never know, though. The health insurance might stink.

The point Mayor Bloomberg was trying to make when he got caught up in the economics of common folk like Richard Clark is that beating up on drug companies in the heat of the current health care debate doesn’t solve anything.

I agree. I think it’s far more important to beat up on the three major enablers of drug companies: the FDA, the medical mainstream, and the mainstream media. Take away the influence of those three fawning institutions and Mayor Bloomberg’s take on drug company profits would be a little closer to reality.

Source:
“Bloomberg: Pharmaceutical Companies, CEOs Don’t Make Much Money” Sara Kugler, Associated Press, 8/21/09, ap.org