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Big Pharma: Enemies Of Humanity?


Everyone knows about the sick, depraved monsters of the Third Reich – Hitler, Himmler, Mengele and the rest. Well, there is an evil just as insidious on the planet today. It isn’t as widely known as it should be – that’s one of the reasons why it is so insidious. They are predators that are so wealthy and so devious that they are able to hide behind a veil of legality and respectability. Actually, the most treacherous aspect of this story is the fact that they are a significant part of the health industry. Yes, the HEALTH industry.

While hard-working people struggle to make ends meet and take care of their children to the best of their abilities, these traitorous criminals are amassing enormous sums of money to provide “necessary” drugs to ensure a healthy population. Or so we thought.

Now, for the multibillion dollar pharmaceutical corporations to make obscene amounts of money while actually providing life-saving drugs would be one thing. However, when an industry entrusted with people’s health actually creates a cartel and conspires to keep the masses sick to protect their profits while sucking billions of dollars out of the economy – well, that’s quite another.

Pharmaceutical corporations have morphed in recent years into something more like a criminal organization than an integral part of our healthcare system. Now, how have they been able to do this without creating a storm of maniacal rage from the public? The main reason why they – or corporations in any industry for that matter –  can get away with such ominously destructive behavior is that they are able to hide the fact that they rig the system by disseminating propaganda in a nation in which everything from elections to creative public relations is for sale.

First, they have legislation written for them by so called “industry experts” that are designed to bypass health and/or safety regulations while creating the illusion they are doing what’s best for the public (research the nefarious dealings of ALEC). Then, they purchase positions in government and put spies in place to quickly push this legislation (that they call regulation) through the normal bureaucratic process. This is possible because they have managed to increase their influence in Wall Street circles – partially due to duplicitous corporate in-breeding with the criminally insane Banking and Insurance Cartels. And, finally, because corporations have purchased virtually every media outlet in the nation they are able to indoctrinate the masses into believing their sociopathic behavior is acceptable and is aimed toward “progress”. This includes the group of corporations known collectively as Big Pharma.

For every dollar the drug companies spend on research, they spend 19 dollars on marketing. Interestingly, paid mouthpieces for the Big Pharma {like the Galen Institute, an industry-funded organization that promotes so-called “free market” policies} publically state that the drug companies have had to decrease funding for research and development due to regulation. Well, this regulation they speak of is something of a mystery to the rest of the planet. In fact, more than 80% of basic funding for new drugs and vaccines comes from public sources. Apparently, pharmaceuticals is another industry (like war) in which corporations benefit from taxpayer money while reaping a harvest of obscene profits.

A study on the pharmaceutical industry was done by Donald Light, a professor of social medicine and comparative health care at the University of Medicine & Dentistry of New Jersey, and Joel Lexchin, a professor of health policy and management at York University in Toronto. One of the facts they uncovered was that while the industry’s research and development costs have risen significantly between 1995 & 2010 (approximately $30 billion), profits have increased much more so in that same time period (over $200 billion). “Net profits after taxes consistently remain substantially higher than profits for all other fortune 500 companies”, according to the study.

Sometimes, nothing other than the concepts of justice and democracy are hurt from this greedy, manipulative behavior. Other times, however, the damage is much more deadly.

In 2010, Merck & Co. settled a lawsuit in which 3,468 people died of heart attacks and strokes associated with use of Vioxx, a painkiller they manufactured. Yes, three thousand four hundred sixty eight people. Dead. They were accused of not releasing safety data to the FDA, making innaccurate and misleading statements about the cardiovascular safety of the drug and illegally promoting “off label” uses of it. Meanwhile, they were more than happy to collect over $11 billion in sales of Vioxx from 1999 – 2004. This means that for six years a multi-billion dollar corporation spent untold amounts of money in litigation costs to avoid compensating the victims of their criminally insane greed. On top of this already sordid tale of unethical activity, another fact attests to the viciousness of this crime. Merck never admitted liability for the deaths attributed to their product. We can only imagine how many times corporations have gotten away with this type of crime without being caught.

Merck is not the only corporation in which management puts personal profit over the safety and well being of their customers. In 2012, GlaxoSmithKline pleaded guilty to extremely disturbing charges related to several of their medications. In the case of their antidepressant drug, Paxil, the company tried to promote use in children and was caught helping publish a medical journal article with misleading data from a clinical trial. One of the facts that was supressed is that there was significant evidence of suicidal thoughts in teenagers who were tested. Can’t have dead teenagers holding back profits. It might affect their value at the NYSE. With their drug, Wellbutrin, they jumped on the bandwagon of self-centered obsession with youth and physical appearance by promoting it for sexual dysfunction and weight loss. It was only designed for use as an anti-depressant. With yet another drug, Avandia, they failed to report data to the FDA about heart risks discovered during testing. Avandia is a medication for diabetes. How nice, deceive people and have them trade their diabetes for heart trouble.

Another aspect of this story of insatiable greed and lack of empathy is that overdoses of prescription sedatives and painkillers have killed more people than heroin and cocaine combined, yet are legal. Hospitalizations from poisonings attributed to these legal drugs increased 65% from 1999 to 2006. Over the same period of time, the increase of poisonings due to illegal drugs is half that rate. Some doctors consider prescription drug deaths the biggest man-made epidemic in the U.S. However, try telling law enforcement officials who listen to the propaganda put out by pharmaceutical lobbyists to arrest the pushers of prescription drugs. Jail is for the working class – not for wealthy people who live in mansions.

While Big Pharma has unscrupulously been filling their coffers with their ill-gotten gains, almost one-quarter of the U.S. population over the age of 50 has had to cut back on dosages or switch to generic brands due to price increases. Pharmaceutical corporations have had tremendous success in lobbying criminal elements inside our government to prevent Medicare and Medicaid from bargaining for affordable drug prices. In Canada, the provinces negotiate with drug companies for lower prices. This has kept prices in Canada significantly lower than in the U.S. – even when medications are imported from their southern neighbors. A recent survey among legitimate online pharmacies revealed prices in Canada ranging from 40% – 70% lower than their U.S. counterparts.

Oh, and one more thought about the lack of humanity on Wall Street: after their lawsuit was announced in 2010, Merck’s stock dropped 1% or about 33 cents per share. Is that all we value human life these days?

via Big Pharma: Enemies Of Humanity? | ashiftinconsciousness.

via Big Pharma: Enemies Of Humanity? | ashiftinconsciousness.

What Doctors Don’t Know About the Drugs They Prescribe


When a new drug gets tested, the results of the trials should be published for the rest of the medical world – except much of the time, negative or inconclusive findings go unreported, leaving doctors and researchers in the dark.

In this impassioned talk, Ben Goldacre explains why these unreported instances of negative data are especially misleading and dangerous.

Ben is a best-selling author, broadcaster, medical doctor and academic who specialises in unpicking dodgy scientific claims from drug companies, newspapers, government reports, PR people and quacks. Unpicking bad science is the best way to explain good science.

He is known for his “Bad Science” column in The Guardian, and is the author of two books, Bad Science (2008), a critique of certain forms of alternative medicine, and Bad Pharma (2012), an examination of the pharmaceutical industry, its publishing and marketing practices, and its relationship with the medical profession.

via What Doctors Don’t Know About the Drugs They Prescribe – Ben Goldacre.

via What Doctors Don’t Know About the Drugs They Prescribe – Ben Goldacre.

Big pharma’s excuses for the monopolies on medicine won’t wash


big-pharma-org-crime

 

 

Several years ago, I began to learn about what I would come to regard as one of the great crimes in human history, whereby millions of people in Africa and elsewhere were cynically allowed to die of Aids, while western governments and pharmaceutical companies blocked access to available low-cost medication. The outrage I felt as I discovered the details of this story was exceeded only by a deep sense of betrayal mixed with shame for not having known more about it in the first place.

Today, I find those feelings mirrored in audiences who see my film, Fire in the Blood, which, incredibly, is the first comprehensive account of this horrendous atrocity and how it was eventually halted. As anyone who knows anything about pharmaceuticals will tell you, the name of the game is monopoly. In the case of medicine, monopolies emanate from patents. Typically a patent lasts for 20 years, but drug companies are expert at getting them extended. As long as the monopoly is in place, the company selling the drug can essentially charge whatever they want for it. Pricing is unrelated either to the cost of production (normally a few pennies per pill) or how much was spent in development, but a simple calculation of how to maximise revenue. Though most western countries do have price controls, these typically only keep price levels consistent with other comparable countries, so restraints are minimal.

Why does society accept this? The narrative the industry has been immensely successful in selling is that it spends vast sums of money on research and development, that this R&D is very high risk, and that monopolies and high prices are a “necessary evil” needed to finance innovation of new medicines. These arguments do not hold up under scrutiny. 84% of worldwide funding for drug discovery research comes from government and public sources, against just 12% from pharma companies, which on average spend 19 times more on marketing than they do on basic research (paywalled link). When we screened our film at the Sundance festival last month, audiences were dismayed to learn how much of their tax money goes to discover medicines which are then sold back to them at monopoly prices nearly half of all Americans surveyed say they have trouble affording.

In developing countries, where people typically pay for medicines out of pocket, the situation is far worse. Pharmaceutical company representatives have told me that in (relatively prosperous) South Africa, they price their products for the top 5% of the market, while in India their customer base might be just the top 1.5%. The rest of the population is of no interest. At the same time, drug companies are working tooth-and-nail to cut off supplies of lower-cost generic drugs originating in countries such as India, Brazil and Thailand, to make sure that they don’t miss out on a single customer who could possibly pay their sky-high prices.

At the industry’s behest, governments in the US and Europe use a dizzying variety of trade mechanisms, threats of sanctions and so on to curtail supplies of affordable medicine in the global south. The potential impact of these measures in human terms is nothing less than cataclysmic. As Peter Mugyenyi, director of Africa’s largest Aids treatment centre says: “We are on standby awaiting another bloodbath.”

To any suggestion that the prevailing system of monopolies on medicine is hugely inefficient, immoral and unsustainable, industry apologists contend that “it’s tried and tested”, whereas any proposed alternative would represent a massive gamble. This, again, is totally disingenuous. A vital first step is to raise the bar for granting patents: 90% of drug patents have no meaningful clinical advantages for patients, but nonetheless impede access.

More significantly, for 70 years Canada had a system prohibiting monopolies on medicine, where patent holders received a statutory royalty on sales of generic equivalents. This maintained profit incentives for innovation, while ensuring the public was not held to ransom by monopoly pricing (it did not, however, produce the windfall profits to which the industry is addicted – so US trade negotiators had it killed under Nafta).

This year may well be a tipping point. Relentless pressure is being applied to poor countries by western governments determined to strangle supplies of lower-cost medication relied upon by the vast majority of the world’s people who will never be able to afford branded drugs, and the outlook for access to medicine in the global south grows bleaker by the day. As unthinkable as it may seem, the horror that saw millions of people die unnecessarily of HIV/Aids while being denied safe and effective generic medicines produced at a fraction of the prices brand-name companies were charging, could be a mere taste of things to come.

via Big pharma’s excuses for the monopolies on medicine won’t wash | Dylan Gray | Comment is free | guardian.co.uk.

via Big pharma’s excuses for the monopolies on medicine won’t wash | Dylan Gray | Comment is free | guardian.co.uk.

Can you Trust big Business? Practicing the most stark acts of corporate inhumanity -Pharmaceutical Giants


Pharmaceutical Giants

‘There were times not long ago that drug companies were merely the size of nations. Now, after a frenzied two-year period of pharmaceutical mega-mergers, they are behemoths, which outweigh entire continents. The combined worth of the world’s top five drug companies is twice the combined GNP of all sub-Saharan Africa and their influence on the rules of world trade is many times stronger because they can bring their wealth to bear directly on the levers of western power.

The pharmaceutical industry is one of the most profitable industries in both the US and Great Britain. Gross Profit margins of some of the leading pharmaceutical companies in recent years has been around 70 to 80 percent [1].

The global drugs market is controlled by corporate behemoths such as Pfizer, Bristol-Myers Squibb, Bayer, Merck & Co, Pharmacia, Novartis, Johnson&Johnson, Abbott Laboratories, American Home Products, Eli Lilly, Schering-Plough, GlaxoSmithKline and Allergan. Their market domination enables them to dictate drug prices . In past years, pharmaceutical prices have risen faster than the rate of inflation. The fact that there is very little price elasticity (the elasticity of demand tells us how much the quantity demanded changes when the price changes) associated with price increases is a major factor contributing to the high profitability of the pharmaceutical industry. A patient will not change the demand for a product with a small change in price when there are no close or available substitutes. Actual manufacturing costs of medicines are relatively low [2].

The big pharmaceutical companies’ profits can be even higher due to limited competition in the pharmaceutical industry caused by strict patent laws [when a company owns a patent for a key drug, profits can mount up since the company faces no competition] and high barriers for small firms [new competitors] to enter the industry. In addition, through a recent and ongoing wave of mergers and acquisitions the big companies intensify the process of consolidation [limiting competition in the so-called free market even further]. Also, more frequently strategic alliances (less costly than mergers and acquisitions) are being formed with small biotech companies in order to reap the (new) economic benefits biotechnology offers. The drug giants cannot keep track of all new developments themselves, but want to keep their pipelines full

Tomorrow: Can you Trust big business? A look at Pfizer Inc

via Corporate Watch : Overview : Overview.

via Corporate Watch : Overview : Overview.

Bitter pill that comes with having large drugs sector


ANALYSIS: The pharmaceutical industry’s lobbying of the Government demonstrates how multinationals play governments off each other and limit political choices

The nature of the lobbying of Taoiseach Enda Kenny by the pharmaceutical industry, as disclosed in this newspaper during the week, illustrates the power of the industry, and of the multinational sector generally.

The series of letters from senior figures in the world’s largest pharmaceutical companies appeared co-ordinated and included references to meetings the writers had had with the Taoiseach to discuss their concerns.

They also referred to Ireland’s upcoming presidency of the European Union and topics of interest in that regard, including the pricing of drugs in countries that are the subject of troika programmes.

The conflation in the letters of the sector’s commercial objectives with its importance to the Irish economy illustrated how Ireland’s success in attracting multinational investment can affect the role it plays in the globalised world.

Because globalisation has raced ahead of political control, multinationals play countries off each other, seeking concessions everywhere they go. Governments, unless they can agree regional or global measures that reassert their power, are hugely exposed.

In his letter of February 23rd, 2012, to the Taoiseach, Miles D White, chairman and chief executive of Abbott Laboratories in Illinois, directly linked inward investment and the price his company gets paid by the State for the drugs it supplies.

“In common with other pharmaceutical multinational organisations, we find it difficult to reconcile a policy of pursuing inward manufacturing investment with an attempt to drive medicine prices to among the lowest in the European Union,” he wrote.

The price paid by a government for pharmaceuticals is referenced according to the prices paid by other governments, with the system being organised into “baskets” of countries whose prices are linked.

White’s concern was not so much with his company’s profits from sales here as with the effect any drop in Irish prices would have in other, larger markets.

“International price-referencing results in pricing in Ireland having a knock-on effect on the pricing of medicines in 11 other European countries and up to an additional 37 countries worldwide,” he wrote.

“Driving down the price of medicines across such a large number of export markets for the Irish-based pharmaceutical industry could directly jeopardise jobs in Ireland as it will create substantial pressure to cut manufacturing jobs.”

The Irish pharmaceutical sector employs up to 25,000 people directly, and the same number indirectly, and is a major contributor to Irish exports. The pharmaceutical firms that wrote to Enda Kenny warned that Government decisions aimed at reducing its drugs bill could have “unintended consequences”.

It is a strange thing to have a sector lobbying the Taoiseach to help it combat reductions in the price of its products, not just in this country but in 11 others in Europe, and up to 37 worldwide, and while doing so to suggest that a failure to deliver might affect inward investment into Ireland.

Price paid

Ireland’s drug prices are among the highest in the world, with a recent survey finding that costs here are up to 45 per cent higher than they are in Sweden.

As this newspaper’s health correspondent, Paul Cullen, has observed, it is hard to avoid the conclusion that the high cost of drugs in Ireland is part of the price we pay for having a large pharmaceutical sector.

In fact, given the basket arrangement, citizens in 11 other European countries, and 37 worldwide, may be paying the price. It is important to remember that what is at issue is the price paid by governments for pharmaceutical products.

Yet, despite the importance to them of sales funded by government revenues, pharmaceutical companies, as with almost all multinationals, organise their affairs so they direct profits to low-tax jurisdictions.

White’s company, Abbott, is in the process of creating a sister group, Abbvie, which will focus on research-based pharmaceuticals. This year two Irish Abbvie subsidiaries were established, with registered addresses at the offices of Matheson solicitors in Dublin. Also established was Abbvie Ireland NL BV, a Dutch company with an address in Sligo.

The structure looks like one designed to reduce Abbvie’s future tax bills in much the same way that Google, Microsoft, and other multinationals have used Ireland to save themselves fortunes in global corporation tax. A request for a comment from Abbvie on this point yesterday met with no response.

Just this week Bloomberg reported that Google avoided $2 billion in corporation tax in 2011 by way of its international tax structure. That tax structure is centred in Dublin, where two of Google’s key companies are based at the Matheson offices, and use a Dutch company as part of their tax avoidance policies (the so-called Dutch sandwich scheme).

Earlier this year a report for the Senate Permanent Subcommittee on Investigations in Washington disclosed that Microsoft reduced its US corporation tax bill by €1.87 billion in 2011. The saving was achieved mostly through the avoidance of tax on royalty payments between three companies with their registered addresses at the Matheson offices. One of them, Round Island One, is a Bermuda company, despite having its registered office here.

The structure channels non-US profits from around the globe (including Africa) to Bermuda, which does not charge corporation tax.

Revenues lost

About 60 per cent of world trade occurs within multinational companies. An enormous amount of the profit from that trade is ending up in low-tax and offshore jurisdictions. The revenues lost to governments as a result has to be replaced by targeting other sources, including individuals and businesses that do not trade internationally.

In an environment where so many western countries are raising extra taxes and cutting services in an effort to narrow government deficits, the aggressive avoidance measures operated by multinationals are becoming a political issue.

This month the head of the UK’s public accounts committee, Margaret Hodge, described the tax policies of Google, Amazon and Starbucks as “outrageous and an insult to British businesses and individuals who pay their fair share”. Starbucks, stung by reputational damage, offered to voluntarily pay £20 million to the British exchequer.

On the other hand, Google executive chairman Eric Schmidt responded by saying he was “proud” of his company’s tax structures.

Calls for reform of how multinationals are taxed are entering mainstream debate. The issue featured at last month’s meeting of G20 finance ministers in Mexico.

But Ireland, because of its dependence on foreign direct investment, finds itself on the side of the status quo. Likewise, in relation to financial services, the Irish Financial Services Centre complicates Irish policy on banking regulation and the implementation of a financial transaction tax.

A number of the letters sent to Enda Kenny by the pharmaceutical companies quoted his stated ambition to “make Ireland the best small country in the world in which to do business in 2016”.

That ambition is all very well, but having a disposition towards siding with multinational companies as they play countries off one another carries with it the probability of ongoing erosion of the scope to make political decisions.

It is not true that everything comes with a price. But a lot does.

via Bitter pill that comes with having large drugs sector – The Irish Times – Sat, Dec 15, 2012.

via Bitter pill that comes with having large drugs sector – The Irish Times – Sat, Dec 15, 2012.

Major drug companies lobbied Kenny over HSE scheme


The Government was subjected to an intense lobbying campaign by the pharmaceutical industry earlier this year over a HSE decision not to approve for payment new drugs and medicine.

Taoiseach Enda Kenny was warned the decision could have implications for 25,000 jobs and future investment.

Early this year, the HSE decided not to reimburse new drugs that had passed all regulatory stages and were becoming available for use in patients. They included drugs for treating skin cancer and cost up to €85,000.

In correspondence with Mr Kenny, up to 20 multinational drug firms claimed that the HSE move was portraying Ireland negatively and could have “unintended consequences” for Ireland.

The details have emerged against a backdrop of continuing controversy over the price of medicines and Government efforts to curb costs, including the cost of drugs. A recent survey found that the cost of some medicines here is among the highest in the world.

Price referencing

It has also emerged that the price paid for drugs in Ireland is of critical importance for pharmaceutical companies as it influences the price in many other countries, both within and outside the EU, as part of an international price-referencing effect.

Earlier this year the HSE argued that no specific budget had been provided to it to pay for the cost of new drugs and medicines coming on the market after approval.

However, the multinational drug companies argued that a ban on reimbursing new drugs by the HSE represented a breach of a supply agreement with the State.

In June Minister for Health James Reilly reached an interim deal with the pharmaceutical industry that involved reductions in the price of certain off-patent medicines. He claimed this could save up to €20 million in a full year.

As a condition of the agreement the HSE was obliged to add to its list of items for reimbursement “drugs which in the normal course of events would have been approved under its schemes”.

In effect, this meant that the HSE could not refuse to pay for drugs for financial reasons.

In October the Government secured a full agreement with the pharmaceutical industry which it said could generate €400 million in savings over three years. In return for making price concessions, the pharmaceutical companies reinforced the principle that new medicines will be approved under the HSE’s drug schemes once they have been proven to be cost effective.

Strong representations

However, new documents released by the Government show that Mr Kenny received strong representations on the cuts by leading pharmaceutical companies. The letters had been written in February and March and many struck a similar tone.

In one, the president of Eli Lilly, John C Lechleiter, was concerned that “your Government’s recent decision not to reimburse new medicines puts at risk this aspiration and portrays Ireland negatively to inward investors such as Lilly”.

Mr Lechleiter pointed out that Lilly employed more than 700 people in Ireland in two manufacturing sites. “I believe further price cuts and a blanket ban on reimbursement of new medicines could have a number of unintended consequences for the wider Irish economy.”

The chairman of Johnson and Johnson, William C Weldon, told Mr Kenny in a letter: “When new medicines are scientifically and independently judged to be of value and improve health outcomes, it is imperative that they are made available to Irish patients.”

via Major drug companies lobbied Kenny over HSE scheme – The Irish Times – Mon, Dec 10, 2012.

via Major drug companies lobbied Kenny over HSE scheme – The Irish Times – Mon, Dec 10, 2012.

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