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Not-For-Profit Makes Business Sense, Too

Not-for-profit drug development and other charitable initiatives haven't had a hugely prominent role at Big Pharma in the past. But nowadays most Big Pharma can point to some sort of benevolent effort, and a few companies view such initiatives as more than just the right thing to do. They claim that not-for-profit R&D makes good business sense, too.

Not-for-profit drug development and other charitable initiatives such as access to medicines haven't had a hugely prominent role at Big Pharma—ask any drug industry critic. In the past, drug firms have rejected outright calls for lower pricing in certain countries. Let's face it, CEOs have bigger challenges on their plates, like how to fill pipelines and maintain double-digit growth. But a few companies now view such initiatives as more than just the right thing to do. They claim that not-for-profit R&D makes good business sense, too.

Take Novartis AG , for instance. At the commercial level, Novartis has been among the most active, and certainly...

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