This interesting New York Times piece — a review of recent positive business stories about the mega-drug companies — has led some analysts to speculate the worst is over and industry profits may be on the rise again, as if they ever were really down…
Although there was much scrutiny aimed at the FDA last year — all of it deserved — the article chose to veer toward the positive, sidestepping the many alarming imbalances that allow one-pill cures and procedures — key cogs in the conventional medicine machine — to prosper.
What was most worrisome to me about the piece: A nearly 7 percent increase in new prescriptions for the first full week of 2006, a rapid acceleration from the last quarter of 2005, a frightening number from a Merrill Lynch research report. Why the jump? One analyst says the new Medicare prescription drug plan is spurring seniors to fill their prescriptions faster, just one more big government project that’s been overpriced and undersold.
Toward the end, however, another analyst — who’s usually been pessimistic and right on the money — believes a poor public image, beyond greedy pricing and thin pipelines will continue to hobble the fortunes of drug companies for the near term.
New York Times February 3, 2006Registration Required