Pfizer is looking to bid up to $68 billion for rival drug maker Wyeth. The decision is an indictment of Pfizer’s own in-house R&D program, which has created a long string of busts and non-starters in recent years. It is also an acknowledgement of the success Fred Hassan has had in bringing Wyeth back from the brink.
However, will Pfizer finally acknowledge that real estate matters? The company has stubbornly stuck to its pricey digs lining blocks of East 42nd on Manhattan’s east side. Meanwhile, Wyeth occupies a sprawling campus in the less affluent, but more reasonably priced Philadelphia suburb of Collegeville. Pfizer doesn’t need two headquarters. Will image and CEO hubris win out over financial prudence? Only time will tell.
Wednesday, January 28, 2009
Arab Health
It’s been an amazing couple of weeks here at Pharm Aid. Pharm Aid is currently in the Middle East as the guest of the United Arab Emirates government. The festivities are culminating in an appearance at the Arab Health 2009 Congress. The Congress is a gathering point of healthcare decision makers from the Middle East, North Africa, Asia and those Europeans who want to escape the gray.
Earlier this week, I participated in a panel on reversing the trend of medical tourism in the region. Historically, wealthy Arab’s have gone first to the United States and now to Europe for their medical treatment. However, the exponential growth in western hospitals (like Partners Health/Harvard) opening in the region makes this trend unnecessary. I’ve predicted that in the next 5 years, we’ll begin see Americans and Europeans come to the UAE and other Gulf countries for their medical care.
Despite the global recession, the Middle East is perhaps the area least impacted. Governments here are still paying for healthcare expenditures.
Earlier this week, I participated in a panel on reversing the trend of medical tourism in the region. Historically, wealthy Arab’s have gone first to the United States and now to Europe for their medical treatment. However, the exponential growth in western hospitals (like Partners Health/Harvard) opening in the region makes this trend unnecessary. I’ve predicted that in the next 5 years, we’ll begin see Americans and Europeans come to the UAE and other Gulf countries for their medical care.
Despite the global recession, the Middle East is perhaps the area least impacted. Governments here are still paying for healthcare expenditures.
Sunday, January 18, 2009
HIPAA 2
Before 1996, Americans didn’t really have a choice in keeping their health insurance if they changed jobs or lost their jobs. Before 1996, personal medical information could be obtained and used for a variety of purposes.
But all of that changed with the Health Insurance Portability and Accountability Act (HIPAA). All Americans are familiar with the new rules that are provided to them at their doctor’s office and the new disclosure documents that need to be signed. In essence, HIPAA has changed medicine and healthcare in America, and those changes are for the better.
Yet, prior to the passage of HIPAA, there were groups and individuals arguing for patient privacy rights. These groups have failed to recognize that the passage of HIPAA should have put them out of business. Instead of recognizing that they aren’t needed, these patient privacy rights groups now make up lies and do everything possible to instill fear in patients. There’s still a lot of money to be made for scaring senior citizens.
With the news that the administration of President Barack Obama wants to push health IT records has set off a new jihad from the patient privacy rights zealots. These groups don’t want electronic medical records that could save patient’s lives. By definition, electronic medical records could be viewed by several different doctors. According to the folks behind this scheme, if a patient has an electronic medical record and then gets rush to the emergency room, the ER staff can’t access the patient’s file without explicit approval from the patient. So if the patient is unconscious, too bad for them.
This is going to be a fascinating battle to watch in Congress.
But all of that changed with the Health Insurance Portability and Accountability Act (HIPAA). All Americans are familiar with the new rules that are provided to them at their doctor’s office and the new disclosure documents that need to be signed. In essence, HIPAA has changed medicine and healthcare in America, and those changes are for the better.
Yet, prior to the passage of HIPAA, there were groups and individuals arguing for patient privacy rights. These groups have failed to recognize that the passage of HIPAA should have put them out of business. Instead of recognizing that they aren’t needed, these patient privacy rights groups now make up lies and do everything possible to instill fear in patients. There’s still a lot of money to be made for scaring senior citizens.
With the news that the administration of President Barack Obama wants to push health IT records has set off a new jihad from the patient privacy rights zealots. These groups don’t want electronic medical records that could save patient’s lives. By definition, electronic medical records could be viewed by several different doctors. According to the folks behind this scheme, if a patient has an electronic medical record and then gets rush to the emergency room, the ER staff can’t access the patient’s file without explicit approval from the patient. So if the patient is unconscious, too bad for them.
This is going to be a fascinating battle to watch in Congress.
Thursday, January 15, 2009
Screwing Patients
No, this isn’t about some kinky physician engaging in kinky behavior. This is about America’s Health Insurance Plans.
For the last few years, UnitedHealth underpaid patients for out-of-network services. In effect, UnitedHealthcare skimmed 28% off the top of reimbursement back to patients. As a former UnitedHealthcare victim (UnitedHealthcare calls them “customers”), skimming was only one way the wealthy insurer defrauded patients. Another common scheme from UnitedHealthcare was to flat out refuse to cover certain diagnostic tests as “unnecessary” unless the physician gets a prior authorization. UnitedHealthcare is the only insurance carrier I’ve ever heard of that requires a prior authorization for a cholesterol test in a patient with a history of hyperlipidemia and heart disease.
While the recent high profile announcement of UnitedHealthcare defrauding consumers has made major news, it’s really epidemic of an industry problem. The folks that that brought us HMOs and care rationing came up with these skimming schemes. They are represented by America’s Health Insurance Plans (AHIP) – the trade association at the leading edge of the rationing of care for patients. Why pay for cancer treatment for a patient when you can pay a multi-million dollar bonus to the CEO of the health plan?
As Congress and the new Obama Administration look at health reform and ways to expand coverage, they should take a serious look at America’s Health Insurance Plans. It’s time to Be Part of Health Care Reform, and America’s Health Insurance Plans are not part of the solution.
Reference: New York Times
For the last few years, UnitedHealth underpaid patients for out-of-network services. In effect, UnitedHealthcare skimmed 28% off the top of reimbursement back to patients. As a former UnitedHealthcare victim (UnitedHealthcare calls them “customers”), skimming was only one way the wealthy insurer defrauded patients. Another common scheme from UnitedHealthcare was to flat out refuse to cover certain diagnostic tests as “unnecessary” unless the physician gets a prior authorization. UnitedHealthcare is the only insurance carrier I’ve ever heard of that requires a prior authorization for a cholesterol test in a patient with a history of hyperlipidemia and heart disease.
While the recent high profile announcement of UnitedHealthcare defrauding consumers has made major news, it’s really epidemic of an industry problem. The folks that that brought us HMOs and care rationing came up with these skimming schemes. They are represented by America’s Health Insurance Plans (AHIP) – the trade association at the leading edge of the rationing of care for patients. Why pay for cancer treatment for a patient when you can pay a multi-million dollar bonus to the CEO of the health plan?
As Congress and the new Obama Administration look at health reform and ways to expand coverage, they should take a serious look at America’s Health Insurance Plans. It’s time to Be Part of Health Care Reform, and America’s Health Insurance Plans are not part of the solution.
Reference: New York Times
Monday, January 12, 2009
NitroMed Entertains Private Equity Offer
NitroMed, manufacturer of BiDil, has received an offer from Deerfield Management, a private equity firm in December. Earlier today, Deerfield Management upped its offer for NitroMed.
BiDil was the first drug approved in an a racial sub-population. The drug got the nod back in 2005 for heart failure in African Americans.
Given the cheap valuations on Wall Street, private equity firms and big pharmas are going to continue gobbling up smaller biotech firms.
BiDil was the first drug approved in an a racial sub-population. The drug got the nod back in 2005 for heart failure in African Americans.
Given the cheap valuations on Wall Street, private equity firms and big pharmas are going to continue gobbling up smaller biotech firms.
Actavis For Sale
The Wall Street Journal is reporting that Actavis could be up for sale in the coming weeks. The private equity firms backing Actavis have had financial difficulties with the stock market declines.
Ironically, I was talking with some industry folks in New York last week and this came up. There’s definitely interest from Pfizer to expand it’s generic market presence.
It will be interesting to see who eventually snatches up Actavis.
Ironically, I was talking with some industry folks in New York last week and this came up. There’s definitely interest from Pfizer to expand it’s generic market presence.
It will be interesting to see who eventually snatches up Actavis.
Saturday, January 10, 2009
Pharmalot Throws In the Towel
Ed Silverman, a.k.a., Pharmalot, has thrown in the towel on his blog. Newhouse News and The Star-Ledger of New Jersey have pulled the plug on a number of outlets, including Pharmalot. Silverman took a buy-out last year.
It’s a new era… But somehow, given all of his writings on preemption and lawsuits, I think we’ll see Ed Silverman again. He'll be over at Elsevier in a role yet to be named.
It’s a new era… But somehow, given all of his writings on preemption and lawsuits, I think we’ll see Ed Silverman again. He'll be over at Elsevier in a role yet to be named.
Sunday, January 4, 2009
2008 Goes Down in Flames
There’s no doubt about it, 2008 was a terrible year for the pharmaceutical and life science industries. Terrible just about doesn’t do it justice. It was a miserable year for everyone except for trial lawyers and their allies.
In 2008, the FDA completely threw out the user fee agreements and companies were not getting timely review of products. The FDA’s shifting standards in trial designs became the apex of frustration for biotech and pharmaceutical companies.
Curiously, despite all of the drama playing itself out, manufacturers were quiet. Very quiet. But more on that in a minute.
Unfortunately, 2009 doesn’t look much better for the industry. The trial lawyers and their allies are investing hundreds of millions of dollars in the pre-emption issue (the notion that we should allow states and communities to pass laws that supersede federal standards…a can of worms designed to make billions for trial lawyers in frivolous lawsuits).
Yet the industry has been quiet. Over the last 18 months, many of the companies have been looking at their business model and setting themselves up for future success. The sales rep arms race is over and thousands of reps have lost their jobs. Companies like AstraZeneca are looking at outsourcing their manufacturing. And at least one major pharmaceutical company is looking at a business model based on the holding company concept where it would become a holding company of biotech companies and products. Expectations for the industry have never been lower on Wall Street, which buys the industry some time to make changes and set itself up for future success.
2009 will definitely be a challenging year, but it isn’t looking quite as bad as 2008.
In 2008, the FDA completely threw out the user fee agreements and companies were not getting timely review of products. The FDA’s shifting standards in trial designs became the apex of frustration for biotech and pharmaceutical companies.
Curiously, despite all of the drama playing itself out, manufacturers were quiet. Very quiet. But more on that in a minute.
Unfortunately, 2009 doesn’t look much better for the industry. The trial lawyers and their allies are investing hundreds of millions of dollars in the pre-emption issue (the notion that we should allow states and communities to pass laws that supersede federal standards…a can of worms designed to make billions for trial lawyers in frivolous lawsuits).
Yet the industry has been quiet. Over the last 18 months, many of the companies have been looking at their business model and setting themselves up for future success. The sales rep arms race is over and thousands of reps have lost their jobs. Companies like AstraZeneca are looking at outsourcing their manufacturing. And at least one major pharmaceutical company is looking at a business model based on the holding company concept where it would become a holding company of biotech companies and products. Expectations for the industry have never been lower on Wall Street, which buys the industry some time to make changes and set itself up for future success.
2009 will definitely be a challenging year, but it isn’t looking quite as bad as 2008.
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