| Doing Well by Doing Good |
21 April 2003
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Pfizer's Sharecard Cuts Prescription Costs
Most of the time, corporations appear to act against their long-term best interests while pursuing short-term profit. Drug-maker Pfizer has been bombarding the airwaves with its Sharecard prescription plan that does the opposite, sacrifice short-term profit for long-term gains. Writing nice things about a company makes a pleasant change, which one hopes will become habit.
It's no secret that America's seniors sometimes have to choose between prescription medicines or food. This is a crime perpetrated by those that refuse to permit a government insurance plan for everyone. Those hurt most by this are the poor who have chronic conditions requiring indefinite medication.
For those people, Sharecard is a plan requiring no payment (so says the ad) and which allows a monthly ration of medicine for $15 per prescription. There are income restrictions ($18,000 per year maximum, but couples can have $24,000), but it is help to those who need it most.
Pfizer, of course, loses out on the difference between the market price and $15 per medicine -- in the short-term. Long term, the company gets people to buy the pills they may not be able to afford otherwise. It is better business to sell the drugs for $15 than not sell them for much more. In addition, these patients may be extending their lives, providing Pfizer with added years of income.
More importantly, Pfizer has embraced what might be called the "Kensington Principle" -- putting the interests of the customer ahead of those of the board members. It may cause them some losses, but in return, they prove themselves to be civilized gentlemen and ladies. There is no higher accolade.