Pharmaceutical Corruption News Articles

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Swiss drugmaker Novartis said sales would grow faster than expected this year, even without a shot in the arm of up to $700 million from its H1N1 swine flu pandemic vaccine. Third-quarter net profit at Novartis ... nudged up 1 percent to $2.1 billion. This year is turning out to be better than initially feared for Novartis and other major pharmaceutical companies, thanks to hefty price increases and windfall sales arising from the H1N1 outbreak. Both Pfizer, the world's biggest drugmaker, and Eli Lilly topped earnings forecasts this week. Roche reported a sharp jump in sales of its Tamiflu drug for flu last week and analysts expect GlaxoSmithKline's Relenza will also see strong sales in the third quarter. On the vaccine front, Glaxo, Sanofi-Aventis and AstraZeneca are all expected to highlight an expected jump in fourth-quarter sales due to swine flu. The H1N1 flu vaccine is expected to contribute about $400-700 million of sales in the fourth quarter.

Note: Donald Rumsfeld personally made millions as a direct result of the avian flu scare a few year ago. For more on this, click here. For more on pharmaceutical corporation profiteering from swine flu vaccines, click here.

Drugs giant GlaxoSmithKline was accused of cashing in on swine flu after it revealed its profits have risen 10 per cent since the virus was identified. It announced profits yesterday of Ł2.1billion in the past three months. Sales of vaccines and antiviral drugs could push the figure up even higher. GSK chief executive Andrew Witty admitted the swine flu crisis would be a 'significant financial event for the company'. Sales of the company's Relenza inhaler, an alternative to Tamiflu used by pregnant women among others, are expected to top Ł600million. And this figure could be boosted by up to Ł2billion once deliveries of the swine flu vaccine begin in September. But Mr Witty denied Europe's biggest drugs company was gearing up to cash in. He admitted it was planning to charge the UK Ł6 a jab, but vociferously denied reports it cost a pound to manufacture. Liberal Democrat health spokesman Norman Lamb said: 'This is clearly a bonanza for the company. This is a staggeringly substantial return. I will write to the National Audit Office to determine whether we got the best deal for the taxpayer.' Susi Squire of the TaxPayers' Alliance said: 'We need an assurance from the Government that they have got the most competitive rate out of GlaxoSmith-Kline.' Geoff Martin of London Health Emergency said: 'It's a scandal that any company could use the swine flu pandemic as an opportunity to jack up profits. 'The Government should step in and impose a windfall tax on private companies that have hit the jackpot as a result of the flu crisis.'

Note: For more on profiteering in the vaccination industry, click here.

Last month, testimony in front of the U.S. Senate Committee on Commerce, Science and Transportation by a former health insurance insider named Wendell Potter made news even before it occurred: CBS NEWS headlined: "Cigna Whistleblower to Testify." After Potter's testimony the industry scrambled to do damage control: "Insurers defend rescissions, take heat for lack of transparency." In his first extended television interview since leaving the health insurance industry, Wendell Potter tells Bill Moyers why he left his successful career as the head of Public Relations for CIGNA, one of the nation's largest insurers, and decided to speak out against the industry. Potter began his trip from health care spokesperson to reform advocate while back home in Tennessee. Potter attended a "health care expedition," a makeshift health clinic set up at a fairgrounds, and he tells Bill Moyers, "It was absolutely stunning. When I walked through the fairground gates, I saw hundreds of people lined up, in the rain. It was raining that day. Lined up, waiting to get care, in animal stalls. Animal stalls." Looking back over his long career, Potter sees an industry corrupted by Wall Street expectations and greed. According to Potter, insurers have every incentive to deny coverage — every dollar they don't pay out to a claim is a dollar they can add to their profits, and Wall Street investors demand they pay out less every year. Under these conditions, Potter says, "You don't think about individual people. You think about the numbers, and whether or not you're going to meet Wall Street's expectations."

Note: To educate yourself on this important issue, watch this revealing PBS Bill Moyers segment available here.

For years, the Food and Drug Administration has withheld information about drugs and medical devices from the public when their makers cite trade secrecy — even in cases where the agency suspects that the products are causing serious illness or death. Now the new leadership at the F.D.A. may change that. The Obama administration ... is setting up a task force within the agency to recommend ways to reveal more information about F.D.A. decisions, possibly including the disclosure of now secret data about drugs and devices under study. The goal is to open up a system in which the agency failed to inform the public that a widely prescribed heartburn drug was especially toxic to babies; that a diabetes medicine and a painkiller increased heart attack risks; and that antidepressants increased suicidal thoughts and behavior in children and teenagers. “Many people have been harmed over the last decade because the F.D.A. has treated clinical trial results of drugs and devices as trade secrets,” said Dr. Steven Nissen, a cardiologist at the Cleveland Clinic who has campaigned for the release of such information. In 2007, Dr. Nissen published a study showing that Avandia, a popular diabetes medicine made by GlaxoSmithKline, increased the risk of heart attack by 42 percent. The data Dr. Nissen used was made public because of a lawsuit, but the agency had known of the possible risk for nearly two years. Repeated scandals led the Bush administration in 2005 to promise to make public its product safety investigations more quickly, but it did not recommend changing the laws and regulations that govern the release of trade secrets and agency records.

Note: For a powerful summary of corrupt practices by government and corporations in the pharmaceutical industry, click here.

Pharmaceutical stocks are skyrocketing on fears that a swine flu outbreak could go global. Manufacturers of antiviral drugs [and] companies gearing up to produce a vaccine ... are turning profits in an otherwise skittish and down market. Companies gearing up for swine flu, including Roche, Gilead Sciences and GlaxoSmithKline, the manufacturers of the leading antiviral flu medications, are best positioned to see a boost in profits if the disease escalates to epidemic proportions, analysts said. Tamiflu ... was developed by Gilead and manufactured by Roche. Both companies' share prices spiked soon after the U.S. government allowed for its stockpiles of the drug to be made publicly available. Gilead stock surged to $47.53 at the end of the day Monday, up 3.78 percent. Roche rose to $31.72, up 4.34 percent. The other major flu drug currently on the market is Relenza, also stockpiled and released by the government, and manufactured by GlaxoSmithKline. Shares of Glaxo closed surged Monday to $31.56, up 7.57 percent. Both Tamiflu and Relenza are stockpiled by governments and in the case of an outbreak the companies are often required to sell the drugs directly to the government at a discount. "Government stockpiling is viewed as boon for profits. Though the government gets a discount and the margins sold to the government are lower than those if they sold to Walgreens, from a stock perspective it's an unexpected positive surprise," he said.

Note: Pharmaceutical companies make big bucks from scares like the avian flu and swine flu. Yet are the recommended drugs really effective? Many studies say they are not. For analysis of profiteering by the pharmaceutical industry during a previous flu scare, click here. See this link for lots more.

It's not often that a place like Harvard Medical School gets an F – particularly when rivals Stanford, Columbia and the University of Pennsylvania are pulling A's and B's. But that's what happened recently when the members of the increasingly influential – and increasingly noisy – American Medical Student Association (AMSA) decided to grade 150 med schools on just how much money and gifts they're collecting from drug companies. The more goodies a school is vacuuming up from the industry, the worse its grade. It turns out that many professors and instructors are, legally, on the dole as well, and students are beginning to worry that what they're being taught is just as one-sided as what patients are being prescribed. Harvard, at the moment, is at the center of it. Of Harvard's 8,900 professors and lecturers, 1,600 admit that either they or a family member have had some kind of business link to drug companies – sometimes worth hundreds of thousands of dollars – that could bias their teaching or research. Additionally, pharma contributed more than $11.5 million to the school last year for research and continuing-education classes. And while Harvard might be the highest-profile name that was posted on AMSA's grade list, it was hardly the only one that flunked: 40 out of the 150 schools surveyed received F's; only 22 got an A or B. Harvard has convened a 19-member committee ... to review its pharma policy, though the university is hedging on whether it actually plans to change the way it operates.

Note: For more along these lines, see concise summaries of deeply revealing news articles on Big Pharma corruption from reliable major media sources.

Pediatricians, gynecologists and even health insurers all call Gardasil, the first vaccine to prevent cervical cancer, a big medical advance. But medical groups, politicians and parents began rebelling after disclosure of a behind-the-scenes lobbying campaign by Gardasil's maker, Merck & Co., to get state legislatures to require 11- and 12-year-old girls to get the three-dose vaccine as a requirement for school attendance. Some parents' groups and doctors particularly objected because the vaccine protects against a sexually transmitted disease. Vaccines mandated for school attendance usually are for diseases easily spread through casual contact, such as measles and mumps. Bowing to pressure, Merck said Tuesday that it is immediately suspending its controversial campaign, which it had funded through a third party. Legislatures in roughly 20 states have introduced measures that would mandate girls have the vaccine to attend school. Texas Gov. Rick Perry on Feb. 2 issued an executive order requiring Texas girls entering the sixth grade as of 2008 get the vaccinations. Dr. Anne Francis, who chairs an American Academy of Pediatrics committee [stated] "I believe that their timing was a little bit premature," she said, "so soon after (Gardasil's) release, before we have a picture of whether there are going to be any untoward side effects." The country has been "burned" by some drugs whose serious side effects emerged only after they were in wide use, including Merck's withdrawn painkiller Vioxx. The vaccine also is controversial because of its price - $360 for the three doses required.

Note: $360 for every girl in school would amount to quite a hefty transfer of funds from taxpayers into the pockets of Merck. Could profit and campaign contributions be behind the move to make this mandatory?

Two UK-based academics have devised a way to invent new medicines and get them to market at a fraction of the cost charged by big drug companies. Sunil Shaunak, professor of infectious diseases at Imperial College ... calls their revolutionary new model "ethical pharmaceuticals". Improvements they devise to the molecular structure of an existing, expensive drug turn it technically into a new medicine which is no longer under a 20-year patent to a multinational drug company and can be made and sold cheaply. The process has the potential to undermine the monopoly of the big drug companies and bring cheaper drugs not only to poor countries but back to the UK. Professor Shaunak and his colleague from the London School of Pharmacy, Steve Brocchini, have linked up with an Indian biotech company which will manufacture the first drug - for hepatitis C. Hepatitis C affects 170 million people worldwide and at least 200,000 in the UK. Multinational drug companies put the cost of the research and development of a new drug at $800m (Ł408m). Professors Shaunak and Brocchini say the cost of theirs will be only a few million pounds. Professor Shaunak says it is time that the monopoly on drug invention and production by multinational corporations - which charge high prices because they need to make big profits for their shareholders - was broken. The team's work on the hepatitis C drug has impeccable establishment credentials. But the professors' ethical pharmaceutical model is unlikely to find much favour with the multinational pharmaceutical companies, which already employ large teams of lawyers to defend the patents which they describe as the lifeblood of the industry.

Note: This is very exciting news, but we'll see what happens when the hugely profitable pharmaceutical industry presses its might against this effort. For more, click here.

A division of the pharmaceutical company Bayer sold millions of dollars of blood-clotting medicine for hemophiliacs -- medicine that carried a high risk of transmitting AIDS -- to Asia and Latin America in the mid-1980's while selling a new, safer product in the West. The Bayer unit, Cutter Biological, introduced its safer medicine in late February 1984 as evidence mounted that the earlier version was infecting hemophiliacs with H.I.V. Yet for over a year, the company continued to sell the old medicine overseas. Cutter officials were trying to avoid being stuck with large stores of a product. Yet even after it began selling the new product, the company kept making the old medicine for several months more. In Hong Kong and Taiwan alone, more than 100 hemophiliacs got H.I.V. after using Cutter's old medicine. Many have since died. Cutter also continued to sell the older product after February 1984 in Malaysia, Singapore, Indonesia, Japan and Argentina. While admitting no wrongdoing, Bayer and three other companies that made the concentrate have paid hemophiliacs about $600 million to settle more than 15 years of lawsuits accusing them of making a dangerous product. Federal regulators helped keep the overseas sales out of the public eye. The Food and Drug Administration's regulator of blood products, Dr. Harry M. Meyer Jr....asked that the issue be "quietly solved without alerting the Congress, the medical community and the public."

Merck has granted a royalty-free license for its promising Covid-19 pill to a United Nations-backed nonprofit in a deal that would allow the drug to be manufactured and sold cheaply in the poorest nations, where vaccines for the coronavirus are in devastatingly short supply. The agreement with the Medicines Patent Pool, an organization that works to make medical treatment and technologies globally accessible, will allow companies in 105 countries, mostly in Africa and Asia, to sublicense the formulation for the antiviral pill, called molnupiravir, and begin making it. Merck reported this month that the drug halved the rate of hospitalizations and deaths in high-risk Covid patients who took it soon after infection in a large clinical trial. Affluent nations, including the United States, have rushed to negotiate deals to buy the drug, tying up large portions of the supply even before it has been approved by regulators and raising concerns that poor countries could be shut out of access to the medicine, much as they have been for vaccines. Generic drug makers in developing countries are expected to market the drug for as little as $20 per treatment (a 5-day course), compared to the $712 per course that the U.S. government has agreed to pay for its initial purchase. "The Merck license is a very good and meaningful protection for people living in countries where more than half of the world's population lives," said James Love, who leads Knowledge Ecology International, a nonprofit research organization.

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In a major legal setback for President Donald Trump on a high-profile consumer issue, a federal appeals court has ruled that his administration lacks the legal authority to force drug companies to disclose prices in their TV ads. Where most plans to overhaul the cost of drugs are complex, mandating that companies disclose prices is something any consumer can relate to. Separate from the court case, legislation that would lower drug costs for Medicare beneficiaries with high bills is stuck in Congress. There's also a separate bill that would mandate drug companies to disclose their prices in consumer advertising. On TV ads, the unanimous decision by a panel of the U.S. Court of Appeals for the District of Columbia Circuit did not address a core argument of the pharmaceutical industry, that forcing companies to disclose their prices in advertising violates their free speech rights. Instead the three-judge panel ruled that the Department of Health and Human Services overstepped its legal authority by requiring disclosure under the umbrella of its stewardship of Medicare and Medicaid. When the disclosure rule was announced last year, administration officials were confident that it would be in effect by now. Drug pricing details were expected to appear in text toward the end of commercials.

Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption and Big Pharma profiteering from reliable major media sources.

Allowing Americans to purchase lower-priced medicines from other countries would save the federal government alone more than $6 billion, according to a new analysis from the Congressional Budget Office. Under existing law, drugmakers are permitted to produce pharmaceuticals abroad and then import them into the United States, where ... they charge Americans the highest prices for medicines in the world. However, while drugmakers themselves are allowed to import medicines, current law prohibits U.S. consumers and pharmaceutical wholesalers from doing so, even when the same medicines are sold at much lower prices abroad. Spending millions on campaign donations and lobbying, the pharmaceutical industry has for years successfully fought off legislation to end the prohibition. This year — nearly 17 years after President Bill Clinton’s administration killed ... drug importation legislation — the importation initiative has once again been renewed. Looking to take advantage of President Donald Trump’s promise to lower drug prices, Vermont Sen. Bernie Sanders ... introduced the Affordable and Safe Prescription Drug Importation Act on Feb. 28. Overall, campaign spending by the pharmaceutical industry is skyrocketing. Congressional donations from pharmaceutical PACs are up 11 percent as compared with a similar time frame in 2015, and donations to ranking members of health-related committees have risen by 80 percent from two years ago. Lobbying is also on the rise, according to a Kaiser Health News analysis.

Note: For more along these lines, see concise summaries of deeply revealing news articles on government corruption and Big Pharma profiteering.

As deaths from painkillers and heroin abuse spiked and street crimes increased, the mayor of Everett took major steps to tackle the opioid epidemic devastating this working-class city north of Seattle. Mayor Ray Stephanson stepped up patrols, hired social workers to ride with officers and pushed for more permanent housing for chronically homeless people. The city says it has spent millions combating OxyContin and heroin abuse. So Everett is suing Purdue Pharma, maker of the opioid pain medication OxyContin, in an unusual case that alleges the drugmaker knowingly allowed pills to be funneled into the black market and the city of about 108,000. “Purdue Pharmaceuticals was knowingly putting OxyContin into the black market in our community,” Stephanson told CBS Seattle affiliate KIRO-TV earlier this year. He said the opioid crisis caused by “Purdue’s drive for profit” has overwhelmed the city’s resources, stretching everyone from first responders to park crews who clean up discarded syringes. In 2007, Purdue Pharma and its executives paid more than $630 million in legal penalties to the federal government for willfully misrepresenting the drug’s addiction risks. The same year, it also settled with Washington and other states that claimed the company aggressively marketed OxyContin ... while downplaying the addiction risk. A Los Angeles Times report [published last summer] found Purdue had evidence that pointed to illegal trafficking of its pills but in many cases did nothing to notify authorities or stop the flow.

Note: For other reliable information on pharmaceutical involvement in the huge increase in opioid deaths, see Dr. Mercola's excellent article. For more along these lines, see concise summaries of deeply revealing pharmaceutical corruption news articles from reliable major media sources.

The world cannot rely solely on free markets to deliver medicines needed by billions of people in poor countries, so governments should commit to a legally binding convention to coordinate and fund research and development. That's the conclusion of a major United Nations report. The high-level panel was set up last year by UN Secretary-General Ban Ki-moon to find solutions to the "policy incoherence" between the rights of inventors, international human rights law, trade rules and public health needs. The final report ... calls for a de-linkage of R&D costs and drug prices — at least in areas where the system is failing, such as tropical diseases and the hunt for new antibiotics against "superbug" resistant bacteria. The report attacks the "implicit threats" it says are sometimes used by Western governments and companies to stop poorer countries from exercising their right to over-ride drug patents under World Trade Organization rules. That may not go down well in Washington, given the United States' long-standing defence of the international intellectual property system, which has governed world trade for more than two decades. The panel also calls for greater transparency on the true cost of developing a new drug, citing estimates of anything between $150 million US and $4 billion US per medicine. And it wants disclosure on the real prices paid by insurers and governments for drugs, after discounts. The UN panel consisted of representatives from government, academia, health activism and industry.

Note: Big Pharma has long lobbied for protection of its rights to huge profits from new medicines and kept secret its costs for R&D by refusing to separate these costs from marketing costs. For lots more, read a profoundly revealing essay by the former head of one of the most prestigious medical journals in the world. For more along these lines, see concise summaries of deeply revealing news articles on Big Pharma corruption and income inequality.

Major drug companies took hefty price increases in the U.S., in some cases more than doubling listed charges, for widely used medications over the past five years, a Reuters analysis of proprietary data found. Prices for four of the nation's top 10 drugs increased more than 100 percent since 2011, Reuters found. Six others went up more than 50 percent. Together, the price increases on drugs for arthritis, high cholesterol, asthma and other common problems added billions in costs for consumers, employers and government health programs. Extraordinary price hikes by two small companies, Turing Pharmaceuticals and Valeant Pharmaceuticals International Inc ... drew new attention to drug costs. Turing expected to book $200 million by raising the price of Daraprim, an antiparasitic used for a rare infection, by 5,000 percent, according to company documents released by Congressional investigators. Routine price increases by bigger players may draw less attention, but they add up. Sales for the top 10 drugs went up 44 percent to $54 billion in 2014, from 2011, even though prescriptions for the medications dropped 22 percent, according to IMS Health data. Even after discounts, pharmacy benefit managers told Reuters they pay annual price increases on top medications of up to 10 percent. By comparison, the U.S. consumer price index rose an average of 2 percent annually over the last five years.

Note: For more along these lines, see concise summaries of deeply revealing big Pharma profiteering news articles from reliable major media sources.

The U.S. Department of Justice has reached a settlement in the largest health care fraud case in U.S. history. The ruling, which included accusations of false advertising, forced the once widely respected British drugmaker, GlaxoSmithKline ... to pay a record-shattering $3 billion to various plaintiffs and the Department of Justice. Despite this $3 billion settlement, advertising fraud is on the rise in the United States. Expert public relations teams are called in to spin stories and confuse consumers. It is clear there is not enough being done to prevent, stop or resolve matters of false advertising in this country. The effect of the GlaxoSmithKline case has yet to be fully seen. If GlaxoSmithKline is [creative and deceptive] then we might see it roll out ads that skew the $3 billion loss in its favor - blatantly distorting the ruling as an endorsement of its products. At this point, even as regulators secure record-breaking settlements, the American people are losing, and the corporate spin teams are winning, the fight. Record settlements mean little if the deception continues. While winning lawsuits is a first step, what really matters is changing corporate behavior.

Note: For lots more from reliable sources on corporate corruption, click here.

Propelled by an increase in prescription narcotic overdoses, drug deaths now outnumber traffic fatalities in the United States, a Times analysis of government data has found. Drugs exceeded motor vehicle accidents as a cause of death in 2009, killing at least 37,485 people nationwide, according to preliminary data from the U.S. Centers for Disease Control and Prevention. While most major causes of preventable death are declining, drugs are an exception. The death toll has doubled in the last decade, now claiming a life every 14 minutes. By contrast, traffic accidents have been dropping for decades because of huge investments in auto safety. Public health experts have used the comparison to draw attention to the nation's growing prescription drug problem, which they characterize as an epidemic. This is the first time that drugs have accounted for more fatalities than traffic accidents since the government started tracking drug-induced deaths in 1979. Fueling the surge in deaths are prescription pain and anxiety drugs that are potent, highly addictive and especially dangerous when combined with one another or with other drugs or alcohol. Such drugs now cause more deaths than heroin and cocaine combined.

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Last year, Stanford banned its physicians from giving paid promotional talks for pharmaceutical companies. One thing it didn't do was make sure its faculty followed that rule. A ProPublica investigation ["Dollars for Docs"] found that more than a dozen of the school's doctors were paid speakers in apparent violation of Stanford policy - two of them were paid six figures since last year. Conflict-of-interest policies have become increasingly important as academic medical centers worry that promotional talks undermine the credibility not only of the physicians giving them, but also of the institutions they represent. Yet when it comes to enforcing the policies, universities have allowed permissive interpretations and relied on the honor system. That approach isn't working. Many physicians are in apparent violation, and ignorance or confusion about the rules is widespread. As a result, some faculty physicians stay on the industry lecture circuit, where they can net tens of thousands of dollars in additional income. Critics of the practice say delivering talks for drug companies is incompatible with teaching future generations of physicians. That's because drug firms typically pick the topic of the lecture, train the speakers and require them to use company-provided presentation slides.

Note: "Dollars for Docs" is an ongoing investigation into the influence of drug company marketing payments on medical providers. To search for a doctor in the database, click here.

Many drug trials involve a placebo, a sham drug whose results are compared with the results of the real medication. A placebo is supposed to contain a harmless substance, such as sugar or vegetable oil, which has no significant effect on the body. In [a new] study, researchers delved into 176 studies published in reputable medical journals ... from January 2008 to December 2009 to see if placebo contents were disclosed and if so, what they were. The study authors argue that placebo ingredients may not always be as inconsequential as some may think. They write: "For instance, olive oil and corn oil have been used as the placebo in trials of cholesterol-lowering drugs. This may lead to an understatement of drug benefit: The monounsaturated and polyunsaturated fatty acids of these 'placebos,' and their antioxidant and anti-inflammatory effects, can reduce lipid levels and heart disease." Certain placebos, they add, may skew results in favor of the active drug. The researchers referenced a trial for a drug used to treat anorexia linked with cancer in which a lactose placebo was used. Since lactose intolerance is common among cancer patients, the fact that some suffered stomach problems from the placebo may have made the actual drug look more beneficial. "Perfect placebo is not the aim," they write, "rather, we seek to ensure that its composition is disclosed."

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Johnson & Johnson CEO William Weldon delivered both a mea culpa and clear admission to [the Committee on Oversight and Government Reform] that his company let the public down through numerous recent drug recalls. He also admitted that the company secretly bought up defective drugs without informing regulators and consumers of its actions. The committee has been investigating circumstances that have led to more than half a dozen recalls this year of non-prescription cold and pain drugs such as Tylenol, Benadryl and Motrin made by Johnson & Johnson's McNeil Consumer Healthcare unit. Weldon's [pledge] to never let this happen again was met with some skepticism. [Committee Chairman Edolphus Towns (D-NY)] said [the] testimony indicates some very serious problems in "the way Johnson & Johnson viewed its responsibility to the public and its day-to-day relationship with the FDA." There is often a thin line between "working cooperatively" and having a "cozy relationship," he said. "The documents we have seen in this case indicate this line may have been crossed early and often."

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