5 ms·
Satisfying, to say the least. Unlike a $5 million slap on the wrist.
by mankash666 10y ago
Satisfying, to say the least. Unlike a $5 million slap on the wrist.
- gcr 10y agoBut how many fractions of a percent of their revenue does this really represent?
- harryh 10y agoI'm not sure about revenue, but it represents about 55% of their annual profits. 465M / (EPS of 1.57 * 534.91M shares) = .5537
- huac 10y agoFor 1 year.
- joering2 10y agoStill worth it. Tell me I can rob a bank for $100MM and you meet me upfront - instead of arresting me, just take half of my loot and tell me I can't do another bank for the next 12 months.
- Forlien 10y agoDoesn't it depend where Mylan's profit comes from? I don't know the numbers, but ideally the fine would more than cover the amount they made from EpiPens. In your example, if you legally earned $900MM and then robbed a bank for $100MM, would you be fine if the fine was $500MM when caught?
- joering2 10y agoYes. As long as I don't get the hard time and can continue future robbery attempts, I'm fine with that, given I will get caught in the first place. Unless the idea is that Epi will all of sudden become affordable like it used to be.
- jsprogrammer 10y agoThe article says Mylan had $1.3 billion in US government EpiPen revenue just from 2011-2015.
- icebraining 10y agoYes, but that's revenue, not profit. Apparently their margin on EpiPens is 40%, which means it was $520M. So the fine represents around 90% of that.
- jsprogrammer 10y agoSo, $55M in profit.
- imagist 10y agoThat's simply not a correct analogy. A more correct analogy, is that if you make $90K/year at your job, you rob a bank for $10K, you are then are fined $55K. I'm a cynic and most of the time lawsuits penalizing companies are a joke, but this one is better than most. The problem I have with this is that companies don't make unethical decisions, people do, and the people who made this unethical decision will probably see feel very little of the fine. Maybe they'll get fired, but they'll still walk away with massive amounts of pay and probably a contractually obligated bonus and severance.
- forgetsusername 10y agoWould you rather they were crushed, and all the employees that had nothing to do with this (of which there are tens of thousands) were harshly affected?
- hga 10y agoAnd perhaps be forced to stop producing some drugs? I don't think I'm taking any made by them right now, but I know I have in the past.
- stevefeinstein 10y agoYes.
- imagist 10y agoI would rather we put the people who made this decision in jail. People make unethical decisions, not companies, and fining a company doesn't usually punish those people in any significant way.