Industry reputation under fire at home and abroad
pharmafile | October 31, 2003 | News story | |
Continuing conflict over access to medicines in developing countries and growing distrust of big pharma in domestic markets is threatening to irreparably damage the industry's reputation.
A barrage of seemingly disparate developments has brought the issue of the industry's conduct – and public perception of it to the fore once again.
Mark Larsen, Wyeth President for Europe, Middle East and Africa, compares the convergence of these issues, along with growing business pressures, with the meteorological phenomenon of the 'Perfect Storm', and says the industry must question its practices, because others already are.
"Is it acceptable for us to wine and dine physicians and whisk them off to all parts of the world?" he asked an industry audience at a recent Economist conference. "If this practice ended up on the front page of the Wall Street Journal, how would I feel? That's a question we should ask ourselves more often."
His comments coincide with investigations into pharma company marketing practices in the US and Italy, while Bayer faces fresh allegations of a cover-up over its withdrawn Lipobay/Baycol cholesterol drug.
NBC/Wall Street Journal surveys conducted last summer have shown how far the industry's reputation has fallen in the eyes of the US public, who represent its most lucrative market.
Asked which industry had stopped listening and being sensitive to its customers, 36% of respondents answered healthcare [insurance systems], with drug makers coming second with 34%. Asked for their view of pharmaceutical companies, 54% answered either very negative or somewhat negative.
The disillusionment reflects a growing crisis in America's healthcare system, in which 41 million people have no health insurance whatsoever, and a third of its 40 million pensioners have no assistance in paying for their prescription medicines.
President George Bush has pledged to introduce legislation to extend Medicare, but has undercut a promise of increased federal investment with swinging tax cuts that will squeeze already over-stretched state healthcare plans.
Relations between many 'seniors' patient advocacy groups and the industry have been strained in recent years, but have come to a head in a row over GSK's blocking of cheap drugs imported into the US from Canada.
A Stop Glaxo Now Coalition has been formed and has tabled a bill to the House of Representatives to sue companies for up to $1 million if they block the parallel imports.
The trade from Canada to the US is now valued at $1 billion – less than 1% of US sales – but Mark Larsen says it could soon outstrip the industry's parallel trade problems in Europe. "I think we as an industry have to stand up to this or it will suffocate one of the really strong markets we are in."
He adds that the industry often fails to communicate its contribution to healthcare – indeed, medicines have helped create problems for healthcare systems by contributing to patients living longer. "Our pharmaceuticals are causing that trend, but we sometimes forget to make that point."
But the industry's role in the deadlocked row over access to medicines in the developing world carries an even greater moral imperative.
The UN estimates that 46 million people will die of AIDS in the 53 worst affected countries by the end of this decade, a situation aggravated by a lack of healthcare infrastructure, including virtually no access to effective medicines.
World Trade Organization talks to allow poorer countries to bypass drug patents in public health emergencies have ended without agreement once again, with many observers blaming the pharma industry's influence on the US negotiators.
The Guardian newspaper recently devoted a 12-page special to the industry's role in the AIDS crisis, with Chancellor Gordon Brown making a pointed reference to pharma's position of responsibility.
"Nobody can stand outside the need for action here and nobody can claim special interests or special privileges when people are dying unnecessarily," he said. "It's time that all recognise the responsibilities to help avoid unnecessary deaths and that means we've got to get an agreement for the trade round."
Negotiations will resume in Cancun, Mexico in September, and are likely to attract Seattle-style protest if no progress is made on addressing the crisis.
