Professor examines drug industry workings

William Hippler, associate professor of finance, shares his recent research on misconduct in the pharmaceutical industry Tuesday in the Quay Davis Executive Board Room. Hippler’s research shows how misconduct by pharmaceutical companies can affect their ability to perform research, in his lecture “Firm Reputation and Innovation in the Pharmaceutical Industry,” as part of the weekly La Verne Academy faculty lecture series. / photo by Darcelle Jones-Wesley
William Hippler, associate professor of finance, shares his recent research on misconduct in the pharmaceutical industry Tuesday in the Quay Davis Executive Board Room. Hippler’s research shows how misconduct by pharmaceutical companies can affect their ability to perform research, in his lecture “Firm Reputation and Innovation in the Pharmaceutical Industry,” as part of the weekly La Verne Academy faculty lecture series. / photo by Darcelle Jones-Wesley

Pedro Isao Mori
Staff Writer

William Hippler, associate professor of finance, discussed how misconduct by pharmaceutical companies impacted their ability to perform research in his lecture, titled “Firm Reputation and Innovation in the Pharmaceutical Industry,” Tuesday in the Quay Davis Executive Board Room.

“We chose the pharmaceutical industry because there were clear metrics we could use,” Hippler said. “One was how many FDA approved products came out and the second was the issuing of patents.”

Hippler went into detail on his research, which looked at the effects of corporate misconduct on innovation. Misconduct in this context, he said, is defined as any fines or lawsuits brought up against a given company. 

To improve his research, he also used match sampling, which  involves putting companies into similar categories based on statistics such as market share, the number of Food and Drug Administration approvals and investments in research and development.

He said that any misconduct by drug companies negatively impacted their FDA approvals.

Factors that led to an increase in innovation included asset values, competition and adequate funding.

However, there was no correlation found in the overall amount of patents being handed out, Hippler said. 

Hippler said that patents have a time limit and companies need to continuously defend them, making it less desirable for pharmaceutical companies to pursue them. 

Hippler said that companies  are reluctant to do business with another company that received any form of punishment. These factors all played a role in the decrease of innovation among the pharmaceutical industry. 

Questions and discussion followed. 

“Are there cases for multiple years (of reported misconduct)?” asked Adham Chehab, professor of finance.

Hippler said this was not covered specifically by his research, but should be looked at in detail in future studies. 

Omid Furutan, professor of management, asked about inflation and other external factors that could affect the controls of the study.

Hippler said this would fall into categories together with analyst concern which looked at long-term problems that affected companies

Pedro Isao Mori can be reached at pedro.mori@laverne.edu.

Other Stories

Pedro Isao Mori, a freshman journalism major and business management minor, is a staff writer for the Campus Times.

Website | Other Stories

Darcelle Jones-Wesley, a senior photography major, is photography editor of the Campus Times. Her work can also be found at photographybydarcelle.com.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Stories

Related articles

Ispahani recounts his life in economics and education

Ahmed Ispahani, professor of business administration and economics, discussed his life journey in his lecture, “An Exciting Life in Teaching and Consultancy,” Tuesday in the Quay Davis Executive Board Room.

Business students’ project to help kids experiencing homelessness

Students in the integrated business program created a business named “Clear Future,” which sells a cleaning product for phone screens and other screen devices. 

Panel considers student research and professional opportunities

A panel of  faculty members shared ideas to boost undergraduate students’ futures, with an emphasis on seniors, at noon on Tuesday in the Quay Davis Executive Board Room.

Montana research lab offers opportunities for students

Assistant Professor of Biology Pablo Weaver discussed his work and research opportunities at the University’s Bob and Mary Neher Montana Research Station during a lecture Tuesday in the Quay Davis Executive Board Room.