Take a Pitchfork to Big Health
Nowhere is the unbecoming alliance between big government and big business more apparent than in health care. And nowhere in health care is that alliance more shameless than in the pharmaceutical industry. Would-be class warriors on the right would do well to point their pitchforks thisaway:
Pharmaceutical Research and Manufacturers of America (PhRMA) today announced that John J. Castellani will assume the role of President and Chief Executive Officer [...]. Mr. Castellani joins PhRMA after more than nine years as President and CEO of Business Roundtable, a leading association of corporate chief executive officers. [...]
“In John, PhRMA is getting a President and CEO with exceptional policy-making experience and integrity," said David Brennan, President and CEO of AstraZeneca and head of PhRMA's search committee. “His experience in coalition building and strong reputation of working across the political divide set him apart. He will contribute mightily to our mission in a time of dynamic change.”
[...] “The pharmaceutical industry touches millions of people around the world. The industry’s work saves and extends people’s lives everyday,” said Mr. Castellani. “As U.S. health care reform is implemented, I look forward to working with the dedicated people of the industry, public officials and other key stakeholders in the health care community to ensure that the benefits of the legislation help the most Americans possible.” [Via Peter Suderman.]
Even without the increased burdens imposed by ObamaCare, our current health care regime is bankrupting the states. Our pharma-princes stand to profit from making matters worse. Irresistible force, meet immovable object.
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Jun '10
Re: Take a Pitchfork to Big Health
I used to defend Big Pharma for their need to do R&D in developing new life saving drugs. Now, after the backstabbing of the American citizen during the "Health Care Reform" debates, and even more recently, their huge support for Harry Reid against Sharron Angle, whenever the drug companies are criticized, my mouth zips shut. F them.
Re: Take a Pitchfork to Big Health
As usual, the statist project makes for strange bedfellows. Big Pharma finds government-dominated healthcare a straightforward money-making proposition: We have patented drugs and lots of voters in your communities, you need support for reelection. . . let's make a deal.
Unfortunately, the world of Little and Mid-size Pharma isn't spinning so serenely. And even Big Pharma is headed for a cliff. The reason? Not enough new drugs popping out the pipeline at the same time a whole slew of patents are set to expire.
So while Big Pharma is awash in a sea of cash today, it all stops at a date certain. Astra Zeneca's price-to-earnings ratio has declined from 40 to 9 over the last decade, while Pfizer's P/E has likewise dropped from 50 to 14. These fabulously wealthy companies that we all love to hate are priced like utilities with an expiration date.
The way out is business model innovation. The visionaries in Pharma -- yes, there are some -- understand the need to deliver patient outcomes rather than milligrams of some more-or-less effective chemical underwritten by US taxpayers.
May '10
Re: Take a Pitchfork to Big Health
I negotiate and write contracts with Big Pharma, Medium Pharma, and Little Pharma every day. They are typical human beings, neither saints nor evil- but they have issues. 1) Wedded to an unsustainable business model; 2) Victimized by both the FDA and the plaintiffs' bar; 3) Act appallingly with regard to patents, playing every possible game to subvert Constitution Art. 1 Sect 8 (it is unbelievable that "pay-for-delay"- bribing off the generics- has not been blown up in court) and using litigation as a weapon of extortion.
The pipelines are empty because the business model is no longer compatible with physiological and biochemical reality. The low-hanging fruit has all been picked- the single indication-single therapeutic compound, with a broad population seeing a positive effect above zero and below toxic, with no horrific side effects (the plaintiff bar-thalidomide syndrome).
We are too complicated- most diseases require multiple therapies because they are affected by multiple proteins. But because the pharmas want perfect exclusivity of their compoinds, they effectively block combinatorial research using multiple compounds for complicated action. You can't do discovery with Pfizer's and Astella's drugs or biologics together.
That means: no cures.
May '10
Re: Take a Pitchfork to Big Health
I, like cdor, use to defend Big Pharma for their R&D efforts and am disturbed by the cozying up to Big Government. Duane, I appreciate the breakdown of the issues faced by pharmaceutical companies. Why do you think that market forces do not play in here on combinatory drugs between two or more manufacturers? Is the benefit too small in comparison to what is being made on the single therapeutic approach?