Ever wondered what profit is good for?
Lazonick et. al. show that, in 2006-2015, the 18 U.S. pharmaceutical firms in the S&P500 used 99% of their net income to buy back their own stocks and pay dividends. The number for the rest of the S&P500 was 90%.
Lazonick, William, Matt Hopkins, Ken Jacobson, Mustafa Erdem Sakinç, and Öner Tulum. 2017. US Pharma’s Financialized Business Model. Institute for New Economic Thinking Working Papers (July 13): 1-28.
