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Medical Forum / General / General / January 2005

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A drug-company executive speaks out

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MrPepper11 - 30 Dec 2004 13:42 GMT
Houston Chronicle
Dec. 29, 2004

What big drug companies don't want you to find out
Those least able pay the most for prescriptions
By PETER ROST

The U.S. health-care system is the best in the world. Or so we are
often told. But is it really true?

It is certainly the best system for drug companies, which can charge
the highest prices in the world to some U.S. consumers. The
Congressional Budget Office has estimated that average prices for
patented drugs in 25 other top industrialized nations are 35 percent to
55 percent lower than in the United States.

And it is a pretty good system for hospitals, insurance companies and
others that deliver health-care services. Americans spend about twice
as much per person for health care as do Canadians, Japanese or
Europeans, according to the World Health Organization.

But it's not a good system for American citizens. The United States has
shorter life expectancies and higher infant and child mortality rates
than Canada, Japan and all of Western Europe except Portugal, according
to the WHO.

I'm a drug-company executive who has spent 20 years marketing
pharmaceuticals. And I'm troubled. I'm most troubled by the fact that
we stick it to the people who can afford it the least.

For instance, elderly people who use a Medicare discount card and have
to pay $1,299 annually for a drug that the Department of Veterans
Affairs purchases for $322, according to a comparison by Families USA.
Or middle-class families that lose health insurance and have to pay
$29,500 for an overnight hospital stay, when Medicaid would have paid
only $6,000, according to The Wall Street Journal.

It just doesn't make any sense. And, not surprisingly, the companies
with the biggest profits - those in the drug industry - have been
fighting hardest to maintain the status quo.

Our dirty little secret is that the drug industry already sells its
products, right here in the United States, at the same low prices
charged in Canada and Europe. It's done through rebates. These are
given to those with enough power to negotiate drug prices, such as the
VA.

A 2001 study by the consumer advocacy group Public Citizen found that
drug companies' favorite customers paid just a little over half the
retail price. This leaves the 67 million Americans without insurance to
pay cash, with no rebates, at double the prices paid by the
most-favored customers.

The fight against reimportation of drugs is a fight to continue to
charge our uninsureds full price while giving everyone else a rebate.

But what about all those programs drug companies provide to help the
indigent pay for drugs? If they really worked, the Kaiser Family
Foundation wouldn't have reported that 15 percent of uninsured children
and 28 percent of uninsured adults had gone without prescription
medication in 2000 because of cost, and 87 percent of uninsured
individuals with serious health problems reported trouble obtaining
medication.

People today have to choose between drugs and food. The journal
Diabetes Care recently reported on a study of older adults with
diabetes. One in three said they went without food to pay for drugs.

As a drug-company executive, I care about profits. When I was
responsible for a region in Northern Europe, I doubled sales in two
years by lowering drug prices, and in the process increased my
company's sales ranking in Sweden from No. 19 to No. 7 in less than two
years. I proved that it is possible to do good business with lower
prices.

It's encouraging to see that the American Medical Association recently
came out in favor of a system that would allow U.S. pharmacies and
wholesalers to reimport drugs safely from other countries. This is
exactly what Europe has had for more than 20 years.

It is outrageous to claim, as politicians and drug companies have done,
that the United States wouldn't be able to safely and cost-effectively
handle reimportation. A key trade association for European
pharmaceutical companies claims there has never been a confirmed case
in Europe of a counterfeit medication reaching a patient as a result of
reimportation. In Germany, this was verified last year by the Federal
Ministry of Health.

In the next five years, branded drugs with annual sales of $72.9
billion are expected to lose patent protection. So we in the drug
industry are fighting reimportation because we're worried about the
bottom line. But when we have to choose between that and the lives of
those who can't afford drugs, we have to choose life.

I joined this industry to save lives, not to take them. And that's the
reason I've chosen to speak out.

....

Rost is a vice president of marketing at Pfizer; the views expressed
here are his own, not those of his employer.
Don Klipstein - 30 Dec 2004 19:49 GMT
>The U.S. health-care system is the best in the world. Or so we are
>often told. But is it really true?
[quoted text clipped - 14 lines]
>than Canada, Japan and all of Western Europe except Portugal, according
>to the WHO.

 Although I agree with this, I would not blame mostly the USA's robber
baron club of a healthcare system for the health of Americans being worse
than that of those in other industrialized nations.  I give most of the
blame to the especially unhealthy lifestyles of all too many Americans.
 Americans eat too much of everything except not enough vegetables and
fiber, too much fat in general, too much saturated fat, too much trans fat
(mostly in partially hydrogenated oils), too much salt and are much too
sedentary.  I also suspect that enough Americans consume enough
recreational drugs to have some measurable impact on overall national
health statistics.  Americans also have HIV/AIDS more than people in other
"first world" nations, and I suspect also other sexually transmissible
diseases.

- Don Klipstein (don@misty.com)
George Conklin - 31 Dec 2004 00:50 GMT
> Houston Chronicle
> Dec. 29, 2004
[quoted text clipped - 97 lines]
> Rost is a vice president of marketing at Pfizer; the views expressed
> here are his own, not those of his employer.

 Is Rost looking for a new job?
Matt Beckwith - 31 Dec 2004 12:55 GMT
Hurray to Mr. Ross for speaking out, endangering his job in the
process.  He makes some excellent points.  I learned a lot from his
statement.  I hope his words are taken to heart by Americans.

However, a couple of his concepts I find a bit misleading.

> The
> Congressional Budget Office has estimated that average prices for
> patented drugs in 25 other top industrialized nations are 35 percent to
> 55 percent lower than in the United States.

The U.S. health care system is geared toward those who have insurance.
The insured do not pay high costs for drugs.  They pay a copay for each
prescription.  Also, the insurance companies do not pay full price for
the drugs.

> I'm a drug-company executive who has spent 20 years marketing
> pharmaceuticals. And I'm troubled. I'm most troubled by the fact that
> we stick it to the people who can afford it the least.

In other words, those who don't have insurance.  In this country, those
who don't have insurance are largely people who are unemployed.  Many
are those who qualify for medical assistance but haven't taken the time
to apply for it.  (Of course, many are uninsured who are employed but
worked for small companies or for themselves.  And the elderly, though
insured, are not adequately covered.)

I also agree with the follow-up post about unhealthful American
lifestyles.  Europeans visiting the U.S. are amazed at how much
Americans eat at each meal, and at how fat Americans are.
George Conklin - 01 Jan 2005 13:45 GMT
> Hurray to Mr. Ross for speaking out, endangering his job in the
> process.  He makes some excellent points.  I learned a lot from his
[quoted text clipped - 27 lines]
> lifestyles.  Europeans visiting the U.S. are amazed at how much
> Americans eat at each meal, and at how fat Americans are.

 Life expectany is still going UP, not down, and lifestyle, not medical
care, is the reason.  Of the 35 years of increased life expectancy since
1900, only 5 is attributed the medical care and the rest to social changes
like, you guessed it, better food.
bae@cs.toronto.no-uce.edu - 01 Jan 2005 18:26 GMT
>  Life expectany is still going UP, not down, and lifestyle, not medical
>care, is the reason.  Of the 35 years of increased life expectancy since
>1900, only 5 is attributed the medical care and the rest to social changes
>like, you guessed it, better food.

I wonder where that attribution came from.  I would think that most of
the 35 years came from reduced infant and childhood mortality, mainly
due to vaccination and public health measures like better sanitation.
The introduction of the sulfa drugs and later the antibiotics probably
accounts for most of the rest.

I suppose you could count it as a lifestyle change to expect sewage-free
drinking water, pasteurized milk and to vaccinate your children, but it
would be a stretch to call availability of effective drugs to fight
infections a lifestyle change.  I'd put vaccinations down to "medical
care" myself, unless you don't include preventive measures (including
screening for disease at an early, treatable stage) as "medical care".

100 years ago, 1 child in 10 died of diphtheria alone.  Other childhood
diseases killed many, both directly and from secondary infections that
can now be controlled by antibiotics.  Newborns died of umbilical
tetanus, their mothers died of childbed fever, infants and young
children died of gastrointestinal disorders due to contaminated water
and unpasteurized milk.  One young adult in four died of tuberculosis.
Pneumonia killed people of all ages, and even minor wounds caused death
from tetanus or septicemia.  

Note that if half the population dies by the age of one, the rest can
live to 100, and life expectancy will still be 50, so saving the lives
of many infants and children will have a far more dramatic effect on
life expectancy than adding a few years to lives of the elderly.

As for the rest, life expectancy in developed countries has gone up
only slightly if at all in the past few decades.  Some is due to
lifestyle factors like the reduced number of smokers and the
recognition of the role of diet and exercise in postponing the diseases
of aging, but I would think more is due to earlier detection and better
treatments for such diseases.  Cervical cancer used to be the major
cancer killer of women of relatively young age.  The Pap test probably
added enough decades of life for enough women to cause a minor increase
in the life expectancy figures.

If you ever get a chance to look at 19th century cause-of-death
records, you'll see that most people died in childhood of "fevers" and
"fluxes", or named diseases, like smallpox and lockjaw.  Those who
survived to adulthood died of consumption and blood poisoning and
"fevers".  An appalling number of women in their twenties died in
childbirth and of childbed fever, and their infants with them.  Those
who made it to middle age seem to have done pretty well, but once they
reached sixty, their deaths are usually recorded as "old age".

Another educational exercise is to examine the tombstones in an old
rural cemetery, perhaps one that served only a few families.  You'll
see how half a dozen or a dozen children of various ages died in a
period of a few weeks as some epidemic came through.  Often several
siblings or cousins share a marker.  You'll see the graves of young
women who successively married the same man, often buried with their
infant of a few days.  Off in a corner, you'll see many closely spaced
markers of infants and young children.  Calculate the average age at
death, and you'll see that it's very low, mostly due to deaths of the
young.  Most such deaths no longer occur, largely due to vaccination,
sanitation and antibiotics.
 
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