maximizing stockholder value

While traveling over the last couple of weeks I was struck by this article in the Wall Street Journal entitled: “Pharmaceutical Companies Buy Rivals’ Drugs, Then Jack Up the Prices.”  The reporter of the article stated in a somewhat matter-of-fact manner that the reason for this behavior was the need for maximization of stockholder value.  Aside from the fact that, with the poorly vetted excuse mongering in the article about fewer opportunities for development and limitations on payments under healthcare, U.S. drugs tend to be significantly higher than generics found overseas, the assumption regarding maximizing stockholder value is misplaced.