Quote:
Originally posted by Tyrone_Slothrop
What you're saying isn't rational. There's no reason for drug companies to leave money on the table, right? If what you say is try, they should be slashing R&D right now in order to pay bigger dividends to their shareholders. By this reasoning, we should get rid of anything that cuts into their profits -- taxes, etc. -- hell, we should be giving them money, in the hope that they will invest it in R&D.
|
Everyone running a company with shareholders recognizes this choice occurs over and over. When your firm buy new computers it limits what profits the shareholders make that month. When GM hires someone to design a car for 5 years from now, it limits what it can pay as share dividends. Drug companies just have a higher investment %. you need to invest for next year's product Ty.
