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Abstract
The ethical obligations of pharmaceutical companies to charge fair prices for essential medicines are explored. The moral issue at stake here is distributive justice. Given the importance of profitability and the long-term stability of these companies, however, justice cannot be their exclusive concern. Rather, the imperative of justice must be balanced with the need to realize key financial objectives. Rawl's (1971) framework is especially germane since it underlines the material benefits everyone deserves as Kantian persons and the need for an egalitarian approach for the distribution of society's essential commodities such as health care. This concern for distributive justice should be a critical factor in the equation of variables used to set prices for pharmaceuticals.