On the surface, the primary difference between a profit making and a non-profit enterprise lies in how surpluses or profits are treated. The profit-making company exists to make money and, to the extent that it succeeds in this mission, profits either go to reward the principals and stockholders or are held as retained earnings. The non-profit exists to fulfill a mission that usually has little or nothing to do with making money. In contrast, when the activities of the non-profit generate surplus income, this “positive fund balance” is either set aside to cover future expenses or used to retire debt. Benefit does not accrue to principals or shareholders, of which there are none, but to the organization itself as a resource for enhancing and extending its mission.
The provisions for handling surplus income that define the non-profit model will work well in addressing access to medicines. DQG’s purpose as an organization is to produce the highest quality generic drugs and sell them at the lowest possible prices, while at the same time enhancing the lives of the people it employs and the communities in which it operates. Stockholders and the board of directors of a profit-making company would never use their surpluses in this way.
Nothing is more fundamental to an organization than its culture, whether it be a profit-making or a non-profit enterprise. How it sees itself, how it believes others should or must interact with it, what its obligations are to its customers are all stirred in and set during its incumbency. The profit motive has been paramount in the pharmaceutical industry since its inception, and indeed this model worked for many years. But with the taking of ever-larger profits, the culture of this industry has come into direct conflict with the needs of its patients. As a non-profit, Drew aims to create an organizational culture where the needs of patients always come first. DQG’s mission is to provide patients with those medications that they need to be healthy or even in some cases, to survive.
The financial surpluses that DQG will realize will allow them not only to expand production but also to become a force for positive change and development within the communities where they operate. They will be in a unique position to repurpose and reactivate abandoned mill sites in areas of high unemployment; recruit and train workers from the region; seek suppliers from a fifty-mile radius; and provide education, training and the possibility for advancement to all employees. In addition to doing a lot of good, these endeavors would also ensure the viability of DQG’s non-profit status against any possible challenges from for-profit competitors who might seek to undermine their efforts.
We believe that being a 501(c)(3) corporation provides us more flexibility to respond to drug shortages than for profit corporations have. This will allow us the ability to fill the void in the generic market and afford patients quality generic drugs that will be produced in the United States.
The Drew Quality Group’s mission is to provide a consistent source of high quality generic drugs manufactured in the United States thereby reducing drug shortages that have become common place while on-shoring high paying jobs, reducing two burdens on the government; drug shortages and unemployment.
Why a Non-profit
Updated on 2018-06-22T13:28:03+00:00, by .