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Dr. Mercola
May 31 2008
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The Beginning of the End for Big Drugmakers?

drug industry, financial dangerSome of the world’s biggest drug companies, including GlaxoSmithKline and AstraZeneca, are facing their worst crisis in decades. Shrinking drug pipelines, increased competition from generics and a slew of patent expirations are putting them in financial danger.

“For the first time in history, the industry will have negative growth in 2011,” says Alexis de Rosnay, global co-head of health care at Lehman Brothers.

Richard Girling, global co-head of health care at Merrill Lynch, says: “The problem is not so much the size of companies but the concentration and reliance on single products. This has been exacerbated by a lack of innovation over the years.”

In the United States alone, drugs worth more than $62 billion in 2006 sales are due to go off patent between 2008 and 2012, which means rival companies will be able to produce generic versions of the same drugs.

Drug companies have acknowledged that radical changes in research and development are needed in order for the industry to reinvent itself.

Dr. Mercola Dr. Mercola's Comments:
Folks, this is not just another case of Chicken Little warning that the sky is falling. The fact that the drug cartel is facing negative growth in 2011 for the first time in history is big news. And great news, at that.

According to a report by PricewaterhouseCoopers, Pharma 2020: The Vision, the leading pharmaceutical companies will lose between 14 percent and 41 percent of their existing revenues as a result of patent expirations between 2010 and 2012.

But don’t start rejoicing just yet.

In an attempt to save their falling dynasty, drugmakers are likely to:
  • Pursue aggressive ad campaigns to doctors and patients
  • Increase drug prices
  • Attempt to extend patents on existing medications
You can also expect more scrambling to develop new “blockbuster” (i.e. money-making) drugs. In 2007, for example, pharmaceutical and biotechnology companies invested nearly $60 billion -- a record amount, up nearly $3 billion from 2006 -- to research and develop new drugs and vaccines.

The Pharmaceutical Research and Manufacturers of America (PhRMA) -- the U.S. drug industry’s Washington lobby group -- said this investment “reflects the continued commitment of America’s pharmaceutical research companies to lead the world in the pursuit of new, life-saving and life-enhancing medicines.”

But don’t let their altruism fool you.

The drug companies are ramping up spending on research and development (R&D) because they’re scared to death that once their patents expire, they’ll be out of “new-and-improved” drugs to peddle to unsuspecting patients.

And as for their development of “new and life-saving” drugs, well, most new drugs are "me-too" or copycat drugs that have little or no therapeutic gain over existing drugs. This certainly undercuts the industry's claim that R&D expenses are used to discover new treatments for serious and life-threatening illnesses.

I have a hard time believing anything that comes from PhRMA anyway, considering they’re the same lobby group that was implicated in a misleading campaign to scare policymakers and the public into accepting exorbitant drug profits. Here’s how they like to operate:

1. First they claim that they need huge profits to develop new drugs, even while drug companies get hefty taxpayer subsidies.

2. Second, the companies gouge taxpayers while spending millions from their profits to buy access to lawmakers and defeat pro-consumer prescription drug legislation.

The Drug Cartel is Slowly Beginning to Crumble

The drug industry is spending more than ever on R&D and sales and marketing, all while producing fewer drugs. Their financial performance is dwindling, and people around the world are growing tired of their underhanded reputation.

Make no mistake: the battle is just beginning. But I believe positive changes are inevitable. Even PricewaterhouseCoopers predicted that health care will shift in focus from treatment to prevention.

If you want to do your part in chipping away at the drug industry, I encourage you to reduce your reliance on prescription drugs. Start today -- do not wait until you’re sick.

The first thing you can do is regularly review this newsletter to keep you current on the latest deceptions and frauds the drug companies are trying to get away with. Then follow these 10 basic tenets of optimal health:

   1. Eat a healthy diet that’s right for your nutritional type (paying very careful attention to keeping your insulin levels down)
   2. Drink plenty of clean water
   3. Manage your stress
   4. Exercise
   5. Get plenty of appropriate sun exposure
   6. Limit toxin exposure
   7. Consume healthy fat
   8. Eat plenty of raw food
   9. Optimize insulin and leptin levels
  10. Get plenty of sleep 

If you want even further proof that the drug industry’s hold on health care is beginning to loosen, listen to this hilarious, yet so true, rant about pharmaceuticals from comedian Bill Maher.

As he says, "If you believe you need all the pills and drugs the pharmaceutical industry says you do -- then you're already on drugs."
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Community Comments ( 75 )
 		Comment on this Article
  
  
"David"
 [ Joined on 08/06 ] [ Posted on May 13, 2008 ]
24 Points        
   
 
Savvy User
Oh no...quick, someone pass me a box of tissues....
 [ Reply ]
Mercola
  
technologist
 [ Joined on 05/08 ]  [ Posted on May 15, 2008]
5 Points        
   
Novice User
  Mercola
I will send you a box.  It is about time the drug companies got a comeuppance.
Mercola
  
KelleyEidem
 [ Joined on 11/07 ]  [ Posted on May 31, 2008]
8 Points        
   
Apprentice User
  Mercola

LOL! There are prescription medications that can help you solve your weeping problem. ;-)

Kelley Eidem

  
  
justnow
 [ Joined on 01/08 ] [ Posted on May 31, 2008 ]
22 Points        
   
 
Novice User

We in Canada  have a real problem come, upon us....Health Canada is desperatly trying to get in a new bill....bill C-51....which would have all herbal medicines band from everyone from consumers to practioners !!!!!! This is just insane because obviously Pharmacudical companies see ( and fear ) that many folks are now involved in alternative medicine...( and getting great results !!!) and no longer interrested in medical drugs....

THis has infuriated Health Canda and they are desparetly trying have this ridiculous bill approved !!!!

My Mother would be dead right now had we not tryed herbal medicine !!!  We live in a insane world, where it is all about money....not saving peoples lives !!!!!

 [ Reply ]
Mercola
  
Health buff
 [ Joined on 01/07 ]  [ Posted on June 4, 2008]
2 Points        
   
Novice User
  Mercola

Hi Justnow

I was about to mention Canada and the natural health issue. When will people wake up to Natural health that is the only way we can stop the pharacudical companies By everyone banding together. I know it falls on deaf ears when you try to prmote it. Friends and family all around having health issues nobody askes why do I not have issues?

signed :health
  
  
curlilox
 [ Joined on 08/07 ] [ Posted on May 14, 2008 ]
22 Points        
   
 
Savvy User
Let me think. . . . yesterday I just found out my landlady (to a farm we rent) is on 14 different prescriptions, and wonders why she feels so lousy!  And they think they are losing money?????  Not as long as they keep gullible people on their drugs!  I talk to the people in this area about positive, natural alternatives and they think I'm crazy!  "Well, I'll just wait and see what the doctor says next time I go in!"  NOT IN THIS HOUSE!
 [ Reply ]
Mercola
  
carley44
 [ Joined on 11/07 ]  [ Posted on May 15, 2008]
18 Points        
   
Novice User
  Mercola
This so true and very sad. My mother now dead was on about 10-12 different drugs. She died thinking she needed all of them! I could never convince her that she felt bad because she was on all that crap. She always did whatever the doctor told her! Her medicine cabinet looked like a drug store. Talk about brainwashed, god rest her soul she was my mom, but she was dumber than two rocks.....
Mercola
  
Reverend Alan
 [ Joined on 12/07 ]  [ Posted on May 31, 2008]
12 Points        
   
Apprentice User
  Mercola

Isn't it in the government run public schools where we are first 'brainwwashed' into trusting the government to have our best interests at heart? Our teachers showed us films about the marvelous world we lived in where the drug companies were saving lives with each new drug invented. Something magical happens when it is the first time we are told something; we believe it completely as long as the source is a trusted and respected source, like your beloved school teacher. Once someone "knows" something [because they have been told it] it is practically impossible to get them to even consider that they were lied to. Ask them to prove to you that these drugs do good and no harm and they just won't like you for disturbing their sleep.

Once someone has been told something no amount of facts, evidence or proof is going to change their mind. They "know" because they were told. Big Pharma has developed "telling" into an art form. And they get trusted doctors to repeat the telling.

Which cigarette is it that most doctors recommend to their patients today?

Oh, and sadly, you are not exempt from being told something and believing it.  
Mercola
  
sobber
 [ Joined on 10/07 ]  [ Posted on June 3, 2008]
       
   
This user is BELOW novice level and all their comments need to be reviewed with great caution.
  Mercola

this big pharma evil comes from america and spreads to other countries; I am going for citizenship exam next week and the questions are if u believe in an american government and I will have to lie again... but that is how they spread it, they force you the right answers in promise of getting something (citizenship)...
  
  
Dennis A
 [ Joined on 06/06 ] [ Posted on May 14, 2008 ]
20 Points        
   
 
Novice User
My first thought was that this is good news – But my elation of the news is tempered with concern as to what “corrective” action(s) the pharmaceutical companies may contrive to deviate from the forecast provided by the industry analysts. Will this now spawn further bogus maladies aka “disease mongering” in order to create new drugs to offset the projected market losses? Merck did this with the HPV vaccine to offset the VIOXX debacle. Or will the big drug companies lobby congress to modify the drug patent guidelines? You can bet they will do whatever is necessary to survive. We will have to watch this closely.
 [ Reply ]
Mercola
  
Pat Ormsby
 [ Joined on 06/06 ]  [ Posted on June 1, 2008]
9 Points        
   
Savvy User
  Mercola

TomT, thank you for trying!  Don't be discouraged by the negative response from many.  People are too scared to look the devil in the face ;-(
Mercola
  
Tanya1
 [ Joined on 12/07 ]  [ Posted on June 1, 2008]
       
   
Novice User
  Mercola

to tomt_ 9/11 is a drop in the ocean. after a dose of jordan maxwell you will see that the story gets more complicated. it certainly doesn't remain on political ground....the story goes back pre babylon, pre caesar
Mercola
  
pbpace
 [ Joined on 06/06 ]  [ Posted on June 3, 2008]
       
   
Novice User
  Mercola

Tom T,

I notice you posting the same kooky, unsubstantiated theories on every thread. We're on to your vindictive little political machinations. Please post your ramblings on moveon.org.  Leave this site for people who wish to discuss health-related issues. BTW, I'm no Dubya loving robot either.
  
  
seg
 [ Joined on 11/06 ] [ Posted on May 14, 2008 ]
19 Points        
   
 
Savvy User
The games have already begun.......Natural Health practitioners watch out..GSK have already gone after dietary supplement manufacturers and it would'nt surprise me one bit if they made it illegal to discuss natural health stuff on the Internet, after all WE and the INTERNET are THEIR worse nightmare.......

 [ Reply ]
Mercola
  
Tanya1
 [ Joined on 12/07 ]  [ Posted on June 1, 2008]
       
   
Novice User
  Mercola

yeah what happened to codex alimentarius
  
  
fingurl
 [ Joined on 04/08 ] [ Posted on May 31, 2008 ]
14 Points        
   
 
Novice User

Proud to be "drug free" now 3 years!  No more Synthroid, Paxil, Wellbutin, migraine meds, sleep meds, pain meds, and the occasional anti-biotic, and of course no more over the counter anything!

All above replaced by following Dr. Mercola's 10 basic tenets of optimal health!

 [ Reply ]
Mercola
  
PatsyK
 [ Joined on 03/08 ]  [ Posted on June 1, 2008]