Valeant Pharmaceuticals Vs Coca Cola - Research Paper

Introduction

Valeant pharmaceutical is a drug selling company which has raised its drug prices to a mark that its consumers are complaining. On the other hand, Coca-cola is a beverage making company who manufacture a number of products that are considered to cause obesity to the consumers and this is according to critics (Mclean, 2016). First, we look at the prices in that the pharmaceutical company enriches itself when exploiting the patients and going against the lawmakers. Like for example, Cuprimine acts as one of the many Valeant drugs whose the prices have gone up and it is being part of the company's strategic plan and this has greatly given rewards to the business people making it one of the best-known health stocks.

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As a matter of facts, Valeant has developed a habit of raising prices for its drugs. The company has in the recent past bought the existing drugs and raised their prices higher without minding the current developments of the new drugs. This has triggered the will of the lawmakers to start interventions so that the public consumers could access the drugs at lower prices against the ones that are set by the drug companies. The model of Valeant is not good to the consumers since it is evident that they have taken their prices higher on their drugs and on also on their brand name which is supported by Deutsche Bank. The analysis of the bank state that the prices of the company are five times more than its closest company peers (Mclean, 2016). Many political leaders such as Hillary Clinton were against the business model of Valeant as they were calling for controlled price gouging when the public complained about the actions of the company for increasing the price of their drugs. In support of the pharmaceutical's drug increase, the Democrats who are in the house committee on oversight and government demanded that Valeant should be warned on the knowledge about their high prices on some drugs used for treating a heart that was acquired by the company.

Government threatening the company shows that their model on pricing is the worst. This makes other industry players more nervous about the decision by the parliament. With this, the set prices on the company's development procedure make it look worse than the companies that sell substandard goods through their goods are of high quality. The company could only make their profits in a big sell-off if their stocks are wiped off. This could make their sales five times higher than it traded five years ago thus outpacing a number of drug companies. In support of its activities, the company made defense stating that their prices are based on given factors that are inclusive of clinical significance and the value that their drugs offer to the patients. The company management claims that the patients are covered from the incising prices by insurance companies with the financial assistance programs that are offered by the company in the aim of offering all drugs that they need.

Arguably, there are notable sales of drinks that are sweetened with sugar. The drinks have gone down in the past decade in the United States whereby the citizens are trying to avoid the drinks. So that they can make their reputation positive, the coca cola company cites the tobacco producers as they also cast doubt on the science claiming that obesity is a personal willingness. As a matter of facts, insisting that science is a wrong measure of obesity plays an important role for soda manufacturers (Fertig et al, 2017). There is much evidence that indicates that a person's daily consumption of sugary drinks leads to poor health. A number of researchers have clarified that sodas are the main contributors to chronic health conditions such as obesity.

Obesity has was listed as a health threat by the US Securities and Exchange Commission during the Coca-Cola annual reports. The company thus overcomes the threat using intensive marketing, lobbying and uses millions of dollars into the fights against the tax that fight the sugary drinks. Additionally, the company uses its finances for the purposes of letting the researchers understand that their product is just benign.

In China, the Coca-Cola Company has influenced the country's policies that aimed at uprising obesity problems (Fertig et al, 2017). This supported much focus on the citizens exercising rather than focusing on their diets thus they safeguarded the drinks sales as alleged by a number of academic studies.

Conclusion

In conclusion, Valeant Pharmaceuticals is a bad business model than the Coca Cola Company as explained in the points above. First, having good products and high prices does not mean that all the needs of the customers have been met. There are low earners who cannot afford some products considering their wages. On the other add, obesity depends on the feeding habits of an individual and not a company's production. Thus the consumer should consider the products that they buy and the prices that are set for the same products.

References

Mclean, B. (2016). The Valeant meltdown and Wall Street's major drug problem. Vanity Fair.

Farley, T. A., Halper, H. S., Carlin, A. M., Emmerson, K. M., Foster, K. N., & Fertig, A. R. (2017). Mass media campaign to reduce consumption of sugar-sweetened beverages in a rural area of the United States. American journal of public health, 107(6), 989-995.