Pharmaceutical Giant Lilly Stands Firm Against White House Drug Pricing Policy

Excellent...Unleash the Lawyers

As Montgomery Burns owner of the Springfield Nuclear Power Plant and a man who knows a thing or two about wielding power I find myself strangely aligned with Eli Lilly on this matter. President Trump with his bluster and bravado seems intent on meddling in affairs he barely understands. ".'Most favored nation' drug pricing," he proclaims. Sounds lovely doesn't it? Like a communist plot disguised as fair trade. This simply won't do.

A Threat to Innovation Smithers

Dave Ricks the CEO of Lilly has it right. Codifying this into law through the congressional process is akin to letting a pack of rabid dogs loose in a china shop. The potential for unintended consequences is immense. As I've often said "progress is for people who can't be satisfied with what they have." This whole endeavor smacks of someone trying to fix something that isn't broken or perhaps trying to break something that is working perfectly well for *me*. After all if we reduce drug prices today who will fund the research for tomorrow's miracle cures? Or more importantly who will fund my next experimental youth restoring elixir? Perhaps this is related to Axelrod's Analysis Geopolitical Chaos and Market Mayhem where we see similar issues with geopolitical meddling affecting global markets.

The Invisible Hand of the Market

The free market as I understand it is a delicate ecosystem. You cannot simply go in and start tinkering with the prices of things without upsetting the entire balance. It's like trying to rearrange the deck chairs on the Titanic – futile and ultimately doomed to failure. The government in its infinite wisdom (or lack thereof) often forgets that the pursuit of profit is what drives innovation. And innovation my friends is what keeps the world turning – and keeps my personal physician employed.

Combating "Bad Policy" Release the Hounds

Mr. Ricks says Lilly will use "all the tools we have to combat bad policy." Excellent. That's the spirit. I wholeheartedly endorse this approach. Sometimes you have to fight fire with fire or in this case fight bureaucracy with… well more bureaucracy but of the well funded highly effective variety. It's time to unleash the hounds – my lawyers that is. They're quite adept at navigating the murky waters of Washington D.C. and they know exactly which palms to grease and which regulations to exploit.

The Future of Pharmaceuticals Bah Humbug

Ultimately this "most favored nation" pricing scheme is a misguided attempt to solve a problem that doesn't exist at least not for those of us at the top. It's a feel good measure that will ultimately harm the very people it's supposed to help. As I always say "if you want something done right do it yourself." And by "yourself," I mean let the free market do its thing unencumbered by the heavy hand of government regulation. Now if you'll excuse me I have a board meeting to attend. We're discussing ways to further consolidate our market share and increase profits. Excellent...

Profit Above All Else My Guiding Principle

So while the White House might think they are doing good they are in fact hampering progress and innovation as if that’s ever a good thing. My vast experience across many industries tells me that meddling with the delicate dance of supply and demand will always result in tears especially when it cuts into my profit margins. So let the market do its thing. More profits for me and more innovative health solutions perhaps even something to keep me alive forever. Now that’s an investment.