Pharmaceutical companies are intentionally setting drug prices at exploitative levels to maximize executive compensation and shareholder dividends over patient access.

The claim that pharmaceutical companies are intentionally setting drug prices at exploitative levels to maximize executive compensation and shareholder dividends over patient access is supported by several findings. Reports indicate that pharmaceutical companies often spend more on stock buybacks, dividends, and executive compensation than on research and development. For instance, manufacturers of the first 10 drugs selected for Medicare price negotiation spent $10 billion more on these self-enriching activities than on research and development in 2022 Public Citizen. Additionally, the U.S. has the highest per capita prescription drug spending, and many Americans report being unable to afford their medications due to high costs American Progress. The complex financial arrangements in the pharmaceutical industry, including the role of pharmacy benefit managers, contribute to high drug prices, which are ultimately borne by patients through premiums and cost-sharing American Progress. These practices suggest that the prioritization of shareholder and executive financial interests can indeed impact patient access to affordable medications.