---
[ IMPORTANT READS ](https://ded2209.inmotionhosting.com/~citywa9/important-reads)
# Big Pharma Spends More on Stock Buybacks Than R&D
January 09 2023
Written by F. Douglas Stephenson.
[](https://www.addtoany.com/share)
DRUG BIZ - The 14 largest publicly-traded pharmaceutical companies spent $747 billion on stock buybacks and dividends from 2012 through 2021 — substantially more than the $660 billion they spent on research and development. So argue economists William Lazonick, professor emeritus of economics at the University of Massachusetts, and Öner Tulum, a researcher at Brown University, [in a new paper](https://www.ineteconomics.org/perspectives/blog/sick-with-shareholder-value-us-pharmas-financialized-business-model-during-the-pandemic).
Recently Big Pharma bluntly and unashamedly announced price hikes in the United States on more than 350 drugs while continuing to brazenly insist that large price hikes are necessary for innovation. The Lazonick/Tulum research shows that the business model of America’s largest pharmaceutical companies involves far more spending on enriching shareholders and executives than on research and development.
Big business, Big Insurance, and Big Pharma industries dominate our government with public health taking a back seat to the need for large private profit. Many government leaders from both political parties share the same ‘profits over public health’ ideology, even though the Covid-19 pandemic clearly showed how our economic system failed to serve our citizens by allowing these groups to privatize, sabotage, fragment and cripple our health, public health and other social services.
No greater disconnect exists between the public good and private interests than in the U.S. system of monopoly, for-profit Big Pharma.
Over forty years of profiteering by Big Pharma and oligarch control of our economy left the public totally exposed and ill-prepared to face the public health crisis of COVID-19. Because Big Pharma rarely invests in prevention, it has very little motivation to invest in preparedness for a public health crisis. Drugs for prevention do not contribute to share-holder value and profit. Instead, cures are designed once a public health crisis strikes.
The sicker we are the more profit they earn.
*(F. Douglas Stephenson, LCSW, is a retired psychotherapist and former instructor of social work in the University of Florida Department of Psychiatry. He is a member of Physicians for a National Health Program.)*
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/115 "Brian Goldsmith Vertical R. Col")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/107 "LA DWP | Save $4K, Green | Priority Ad")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/114 "McKinney Campaign")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/82 "LA DWP #2 (Power Savers)")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/98 "Donna Tryfman - HS1-1")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/97 "Home - LA DWP #2 (Pay Water Bill Help)")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/111 "David DeJute Campaign")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/112 "Anna Reitano Vertical R. Col")
## Get The News In Your Email Inbox Mondays & Thursdays
Website
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/113 "Rhonda Haymon campaign")
[  ](https://ded2209.inmotionhosting.com/~citywa9/component/banners/click/110 "Something You Should Know")
---
## Featured CityWatch Stories
[  ](https://ded2209.inmotionhosting.com/~citywa9/election-2024/33624-prosecutor-democrat-city-attorney-mckinney-makes-his-case-to-los-angeles-voters)
### [Prosecutor, Democrat, City Attorney? McKinney Makes His Case to Los Angeles Voters](https://ded2209.inmotionhosting.com/~citywa9/election-2024/33624-prosecutor-democrat-city-attorney-mckinney-makes-his-case-to-los-angeles-voters)
ELECTION 2026 - The race for LA City Attorney has been laced with political accusations and allegations that when close…
[  ](https://ded2209.inmotionhosting.com/~citywa9/la-watchdog/33544-the-la-watchdogs-2026-voters-guide-2)
### [The LA Watchdog’s 2026 Voter Guide](https://ded2209.inmotionhosting.com/~citywa9/la-watchdog/33544-the-la-watchdogs-2026-voters-guide-2)
LA WATCHDOG - My recommendations are influenced by the need for truly balanced budgets, fiscal responsibility, long ter…
[  ](https://ded2209.inmotionhosting.com/~citywa9/los-angeles/33626-the-fools-blame-game)
### [The Fools’ Blame Game](https://ded2209.inmotionhosting.com/~citywa9/los-angeles/33626-the-fools-blame-game)
THE VIEW FROM HERE - Angelenos do not use elections to plot a wiser course of conduct for Los Angeles, but rather they…
[  ](https://ded2209.inmotionhosting.com/~citywa9/los-angeles/33619-california-film-tax-credits-arent-enough-the-guilds-need-to-change-too)
### [California Film Tax Credits Aren’t Enough. The Guilds Need to Change Too.](https://ded2209.inmotionhosting.com/~citywa9/los-angeles/33619-california-film-tax-credits-arent-enough-the-guilds-need-to-change-too)
LONNIE’S VIEW - California used to be the center of the movie and television universe. If you wanted to make movies, yo…
[  ](https://ded2209.inmotionhosting.com/~citywa9/voices/33648-heres-what-zionisms-got-to-do-with-it)
### [Here’s What Zionism’s Got To Do With It](https://ded2209.inmotionhosting.com/~citywa9/voices/33648-heres-what-zionisms-got-to-do-with-it)
ICAN - The anonymous website “BHUSD Watch” recently published a long, detailed article about the current BHUSD board an…
---
## [ IMPORTANT READS ](https://ded2209.inmotionhosting.com/~citywa9/important-reads)
[  ](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33661-living-in-los-angeles-with-education-debt-what-financial-priorities-matter)### [Living in Los Angeles With Education Debt: What Financial Priorities Matter?](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33661-living-in-los-angeles-with-education-debt-what-financial-priorities-matter)
[  ](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33633-what-a-vaginal-microbiome-test-reveals-about-your-overall-health)### [What a Vaginal Microbiome Test Reveals About Your Overall Health](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33633-what-a-vaginal-microbiome-test-reveals-about-your-overall-health)
[  ](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33563-tenant-lawsuits-offer-rare-glimpse-into-an-l-a-landlords-cash-for-keys-operation)### [Tenant Lawsuits Offer Rare Glimpse Into an L.A. Landlord’s ‘Cash for Keys’ Operation](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33563-tenant-lawsuits-offer-rare-glimpse-into-an-l-a-landlords-cash-for-keys-operation)
[  ](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33571-stop-comparing-october-7-to-the-holocaust)### [Stop Comparing October 7 to the Holocaust](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33571-stop-comparing-october-7-to-the-holocaust)
[  ](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33521-making-the-case-against-the-times)### [Making The Case Against the Times](https://ded2209.inmotionhosting.com/~citywa9/important-reads/33521-making-the-case-against-the-times)