As the pharmaceutical industry faces intense pressure for drug pricing, Allergan CEO Brent Saunders said he is committed to responsibly pricing his company's products.
"The American people deserve to be angry, and only we through self-police and self-regulation can fix it. A government takeover of healthcare is not what we need. We need discipline, we need responsibility, we need companies to do the right thing," Saunders told Jim Cramer in an interview on Wednesday.
Allergan released a "social contract with patients" in the beginning of September to address the cost of medicines and the company's approach to pricing and innovation. While Saunders understood that the contract could put pressure on management to innovate in the future, he said that's what investors should expect from his company.
Cramer noted that Allergan's stock has not performed well, possibly due to fears from shareholders over how much money the company can make. Saunders was not deterred.
"This has no impact on our guidance, this has no impact on our ability to grow … If you're investing in my stock and I took 15 percent price increases on old drugs and I got called in front of Congress, the stock would be down 50 percent in a week. Why would you want to invest in that kind of risk?" Saunders said.