July 22,
2002
Blockbuster Depression: Drug Deals for Drug Makers
Last Sunday (July 14th, 2002), in an
unprecedented alchemy of corporate drug deals synthesized behind closed
doors, a $60 billion transaction allowed Pfizer Inc. to acquire Pharmacia
Corporation, creating the largest pharmaceutical company in the world.
With anticipated annual revenues of $48 billion, the newly concocted
Pfizer-Pharmacia mega-company will have unsurpassed global dominance on
some of the most lucrative pharmaceutical drugs available on the market.
The potential side effects of the merger on consumers, seems to have gone
unnoticed.
When my pharmacist asks me if I would
prefer the generic version of a particular prescribed drug, I, like
millions of other drug consumers, count my blessings in so many dollars
saved in multiple pharmacy co-payments. When only an expensive trademarked
version of a drug, such as the anti-depressant Zoloft, or Celebrex, an
arthritis drug, is available, there is little choice but to buy, and buy
dearly.
But patients’ patience is wearing thin.
Americans are increasingly outraged at the rising costs of pharmaceutical
drugs. In an effort to spank Big Pharma, Congress is currently
considering a handful of bills aimed at curbing monopolies over
trademarked drugs, and on ending the unethical practice of extending
patents for profits. Currently, pharmaceutical companies have a nasty
habit of drawing out billions in profits from patented “blockbuster
drugs” by preventing competitor drug firms from selling cheaper, or
generic, alternatives.
No fewer than 20 major drug companies —
including Bristol-Myers, Eli Lilly, Pfizer, and Bayer — are being
investigated by government agencies, including the Justice Department, the
Food and Drug Administration, the Federal Trade Commission, and the
Department of Health and Human Services.(1) In order to reduce
prescription drug costs to consumers, at least one proposed bill would
limit patents to 30 months on trademarked drugs, at which point generic
alternatives would be freely allowed on the market. Needless to say,
this prospect doesn’t digest well with drug companies and their
investors.
According to Fortune magazine’s
rankings, the pharmaceutical industry has been the most profitable US
industry every year since 1982.(2) In anticipation of a regulatory
clampdown, and under increased public scrutiny, key players in
pharmaceuticals are looking to hedge their bets by consolidating profits
and expanding a global sphere of influence. As many analysts say,
the convergence of Pfizer and Pharmacia will likely hasten further
consolidation of the pharmaceutical industry.
The push for more trademarked drugs with
more consolidated company patents, translates into fewer consumer options.
As Pfizer notes in an understated press release about the merger, “The
combined portfolio will have a strong patent position.” (3) The
merged Pfizer-Pharmacia is now, says the New York Times, “the
most dominant drug maker in the world.” (4)
Dominating Depression
Dominance in the legal drug industry is no small territory. Last year,
Pfizer alone generated sales of $32.3 billion.(5) With double-digit,
billion-dollar market power, and with a noteworthy lead in drugs of
psychopharmacology, Pfizer-Pharmacia will have global reach over several
key sectors. In particular, drugs designed and marketed to modulate
brain chemistry—those intended to make a person less depressed, more
sociable, more happy at work—are currently the hottest segment of
pharmaceutical drugs, with over $10.5 billion in sales for the year ending
in February 2001. Industry analysts point to depression drugs as “a
market with growing demand.” And, the World Health Organization
projects that depression will become "the leading contributor to the
global burden of disease by the year 2020." (6) Add in
market-driven diagnostic creep and prescriptions aimed at broadly defined
“lifestyle indications,” and salivating investors with a hand in the
business will be anything but depressed.
But what are the likely adverse effects for
consumers? With drugs such as Zoloft (under Pfizer’s patent until
December of 2005), (7) and other antidepressants already a multi-billion
dollar industry aimed at altering mood or “changing” the way a person
thinks, feels and acts, the consolidation of drug companies may lead to
less diversity of consciousness, more brand-name brain function.
Prozac, the widely advertised, widely
discussed superstar of antidepressants, became a household prescription as
well as a household name. And, before the sandglass ran out last August on
Eli Lilly’s protected patent on Prozac, at least 40 million people were
franchised users. Prozac accounted for a quarter of Lilly's $10.8 billion
in sales, and more than a third of its $3 billion profits in the year
before its patent expired. (8) Efforts by Lilly to find other drugs in the
pipeline that would mimic the euphoric economic effects of Prozac have
become an understandable company addiction. Recently, Lilly push-marketed
“Prozac Weekly,” a new patent-protected version of Prozac taken in a
once-a-week pill, by mailing thousands of free samples of the drug direct
to unsuspecting consumers in Florida. [See: http://www.cognitiveliberty.org/News/prozac_mailing1.htm
]
In such a cultural climate of brand-name
pharmaceuticals, and direct-to-consumer marketing of brain-changing drugs,
we need to examine what may come about as a result of large-scale
pharmaceutical conglomeration. As innovations in biotechnology,
pharmacology, and specifically neuro-pharmacology, change the ways we
think about drugs, or even the ways we think on drugs, the trend of
Big Pharma growing bigger by consolidation may have serious
consequences for cognitive liberty.
Ultimately, individuals should be allowed
to make intelligent decisions about the drugs they decide to take, and
given as much choice as possible in controlling their own bodies and
minds. Unfortunately, as we all know, from politicians to movies, those
with the biggest budgets and best marketing teams tend to win at the polls
and at the box office. As with merged broadband media AOL/Time
Warner seeking to dominate consumer choice in “Entertainment,”
consolidated pharmaceutical companies of tomorrow threaten to overpower
diversity, choice, and even perhaps, create for certain depression drug
users a “mainlined” consciousness. From there, one has only to imagine
a merger between Big Pharma and Big Media to seal the deal; happy movies,
happy drugs, and happy meals—a smash hit, or a headcrash?
Wrye Sententia is Co-Director of the Center for Cognitive Liberty &
Ethics. www.cognitiveliberty.org
Notes
1 http://www.ariannaonline.com/columns/files/052002.html
2 http://www.citizen.org/publications/release.cfm?ID=7065
3 http://www.pfizer.com/pfizerinc/investing/pharmacia0715.html
4 http://www.nytimes.com/2002/07/15/business/15CND-DRUG.html
5http://www.datamonitor.com/~570be004e0424bf5abac3634d494d29f~/all/capsules/companies/product.asp?pid=A0B328A1-3EB4-4B59-B11F-78556EDA8FC9&url=-SECTION2.HTM&free=free&menu=1&li=False
6 http://www.inpharm.com/intelligence/ims050701.html
7 http://www.myorangebook.com/Generic/S.php?QP_From=50
8 http://www.businessweek.com/magazine/content/01_30/b3742106.htm
Additional
Resources:
CCLE
Pharmacology & Cognitive Liberty
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