ChronicleMONDAY
From the publishers of THE CHRONICLE OF CANCER THERAPY, THE CHRONICLE OF CARDIOVASCULAR & INTERNAL MEDICINE, THE CHRONICLE OF NEUROLOGY & PSYCHIATY, THE CHRONICLE OF SKIN & ALLERGY, THE CHRONICLE OF UROLOGY & SEXUAL MEDICINE, PHYSICIANS’ CHRONICLE, THE CHRONICLE OF HEALTHCARE MARKETING, LINACRE’S BOOKS, and chronicl*e group
AT OUR HOUSE, EVERYBODY EATS
DRUG REPS may be directly contributing to the world’s obesity problem, by plying physicians with free meals. That point was overlooked in a US-Australian investigation into relationships between doctors and the pharma industry, published in last week’s New England Journal of Medicine. The study shows 83 per cent of 1,162 medical practitioners surveyed in 2004 said they received food paid for by drugmakers. Other findings: 78 per cent received Rx samples; 35 per cent received travel or CHE grants or reimbursement; 28 received honoraria for lectures or payments for conducting trials. Says study author Eric Campbell: “We need to look for things like whether doctors who have a relationship with a company are more likely to prescribe drugs made by the company, or brand names rather than generics. That’s the next step…” A spokesman for the stateside lobby says drug reps are much more than just a walking platinum card ready to spring for the crème Brule. Says PhRMA’s Ken Johnson: “[P]harmaceutical marketing is one of several important ways for health-care providers to receive the information they need to make sure medicines are used properly and patients are safely and effectively treated.”
ONLY IN IT FOR THE MONEY? NOPE
A QUESTION MANY pharma employees may ask themselves, especially in light of the previous item, is: Why on earth did I want this job? To provide valuable information to assist physicians in their difficult decision-making, i.e., osso bucco or sea bass? Actually, according to a UK-based HR organization, 57 per cent of drugbiz workers said they were attracted to the sector by a desire to help people in need. Twenty-six per cent said they joined the pharma industry because it offered career development, and 18 per cent identified workplace location as the main factor. More than 1,000 respondents were surveyed by the job website www.eMedCareers.-co.uk. The survey also determined something else we’ve all suspected—namely, that pharma is like the Hotel California, where you can check out, but you can never leave. More than half those surveyed said they would never consider working in another sector. Again, the opportunity to help others was cited twice as frequently as pay and benefits, as reasons for workers’ continuing loyalty. Says re-searcher Eric Potts: “Regardless of whether the industry has an image problem [...] a greater openness can only help to attract potential, high calibre candidates from outside the industry.”
YOUR CHAIRMAN IS NOT A DESPERADO
ASTRAZENECA’s Cdn$17.3 billion acquisition of US drugmaker MedImmune, announced last week (see ChronicleMIDWEEK, 04/25) is receiving poor re-views from investors, reports The Guardian news-paper. Shareholders demand to know why AZ would place a 21 per cent premium on the mid-tier bio-techie’s publicly traded shares, which ranks the deal as AZ’s biggest-ever transaction. Announcement of the pact coincided with last week’s annual general meeting of AZ, providing investors with the opportunity to grill management over the deal. One share-holder demanded an explanation “about such a large amount of money being invested for a small return.” Another attendee speculated that the acquisition may be an “act of desperation, when you have failed in our proven therapies.” That was too much for AZ chair Louis Schweitzer, who suffered a Richard Nixon-like moment in formulating a response. Said he: “This is clearly not an act of desperation.” Either way, the purchase of MedImmune will wipe out AZ’s US$6.5 billion cash mountain, and send the outfit to the bank seeking a US$7.7 billion loan. Remarkably, getting into hock is a spreading trend in the European drugbiz, with GSK and Novartis both adding to their debt or buying back publicly traded stock. An analyst tells Reuters news agency: “Drug companies are between a rock and a hard place—they can either participate in M&A and shoulder the criticism that they are paying too much, or they can do less interesting things with their cash like buy back shares or increase dividend yields.”
CORNY IN THE CORNER OFFICE
BRISTOL-MYERS SQUIBB last week tapped interim boss James Cornelius for a two-year stint as kingpin, reducing speculation that the BMS board was keeping the Big Job vacant in hope of a speedy merger with Sanofi-Aventis. Says Corny: “A key priority of mine will also be management development and succession planning to ensure that the company continues to benefit from strong and effective leadership.” Meanwhile, Australian Rx developer Alchemia last week promoted Peter Smith to the post of supremo, replacing Tracie Ramsdale, who was gee-em and CEO for nine years.
MONDO CANE
ELI LILLY last week went completely to the dogs, getting stateside regulatory okay to peddle fluoxetine (Reconcile) as Tx for canine separation anxiety.
ALLO POLICE
THE GARDEN STATE is suing Schering-Plough, claiming the company promoted off-label use of hepatitis Tx interferon (Intron A) and ca Tx temozolomide (Temador.) New Jersey prosecutors say Intron A was inappropriately promoted for superficial bladder Ca, and Temador, approved only for brain tumors, was promoted for Tx of metastatic melanomas. Scher accepted a plea bargain in a similar action last year in Massachusetts, and agreed to pay a US$180 million fine. Elsewhere, two former senior officers of Bristol-Myers Squibb pleaded not guilty to charges relating to earlier alleged instances of “channel-stuffing.” Frederick Schiff and Richard Lane are accused of improperly pushing inflated levels of Rxs through wholesale distributors, as a means of deceiving BMS investors. The company previously paid a US$300 million fine over the matter.
(c) 2007 Chronicle Information Resources Ltd. Not for redistribution.
ChronicleMONDAY is published by Chronicle Information Resources Ltd, 555 Burnhamthorpe Road Ste. 602, Toronto, Ont. M9C 2Y3. Tel 416.916.CHROn (2476); Toll-free 866.63.CHRON (24766); Fax 416.352-6199; E-mail: health@chronicle.org
