In the health care world, one of the best and worst drugs is OxyContin which is a pain reliving drug. The drug has the side affect of many people becoming addicted to it and in the year 2017 over 48,000 deaths occurred according to the US Centers for Disease Control and Prevention. Health care professionals have tried to mitigate the effect and lately many lawyers which relates to 1,300 cases, so the company Purdue Pharma is considering declaring bankruptcy.
Purdue Pharma is owned by the Sackler family and according to an Associated Press article by Geoff Mulvihill and Matthew Perrone, the family has received more than $4 billion from Purdue in the years 2007 to 2018. The family has donated some money to museums around the world.
The lawsuits claim Purdue Pharma people sold the drug suggesting it had a low chance of triggering addictions despite knowing that was not true. In its defense, Purdue Pharma lawyers noted its products were approved by federal regulators and prescribed by doctors.
Linking to dividend paying stocks, all companies are regulated to some degree, some industries are more regulated than others and the industry expects the regulators to oversee the business. Although the reality is there are few times when the regulators say no. As investors, you expect to when the President uses the words of integrity and trust, there actually be on both sides. This is the key when something goes wrong, how well the company reacts when something goes wrong is a sign if you should be looking for alternatives.
There are more questions than answers, till the next time – to raising questions.