drugs

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As the state seeks reclassification of medical marijuana to a schedule 2 drug , Colorado pot activists are seeking full recreational use legalization, and by the looks of the amount of signatures they have collected, they are off to an overwhelmingly strong start. 7News reports that the Campaign to Regulate Marijuana Like Alcohol says it will turn in nearly 160,000 signatures in favor of the legalization initiative Wednesday to the Secretary of State’s Office — nearly double the 86,000 signatures required to put the question of pot legalization on the 2012 ballot. The state then has 30 days to decide whether or not the pot measure will be on the ballots, according to The Denver Post . If it gets approval, it would be the first measure approved for the 2012 Colorado election. The amendment seeks to make the personal use, possession and limited home-growing of marijuana legal for adults aged 21 and older. It establishes a system in which marijuana is regulated and taxed similarly to alcohol is currently. The act also would allow for the cultivation, processing, and sale of industrial hemp, according to the Campaign to Regulate Marijuana Like Alcohol website . The Associated Press reports that if the measure makes it onto the 2012 ballot, which appears likely, the much more difficult road of convincing a majority of Coloradans to challenge a federal drug law, like this measure would do, is ahead. Added to the challenges are the escalating rumors that a federal medical marijuana crackdown, similar to that which was seen in California , is on its way to Colorado. This would be the second recreational use legalization measure to appear on Colorado ballots, the first, which appeared in 2006, was voted down. “Because so many people have been hearing about marijuana and about the fact that it’s far safer than alcohol, they are becoming increasingly comfortable with acknowledging that an adult should be able to use it without fear of punishment,” Mason Tvert, head of the Campaign to Regulate Marijuana Like Alcohol, said to the Grand Junction Sentinel about the measure . Tvert also says that full legalization could result in an economic boom for the state and with the current flagging national economy, dollars and cents may get Colorado voters to think differently this time around. For now, the Campaign to Regulate Marijuana Like Alcohol plans to celebrate its success and end of the signature drive with a part at the Industry Lounge in Denver on Jan. 4 at 6 p.m.

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Pot Activists To Turn In Nearly 200,000 Signatures For Full Legalization Measure

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Huffington Post…

SAN ANTONIO – Breast cancer experts are cheering what could be some of the biggest advances in more than a decade: two new medicines that significantly delay the time until women with very advanced cases get worse. In a large international study, an experimental drug from Genentech called pertuzumab held cancer at bay for a median of 18 months when given with standard treatment, versus 12 months for others given only the usual treatment. It also strongly appears to be improving survival, and follow-up is continuing to see if it does. “You don’t see that very often. … It’s a spectacular result,” said one study leader, Dr. Sandra Swain, medical director of Washington Hospital Center’s cancer institute. In a second study, another drug long used in organ transplants but not tried against breast cancer — everolimus, sold as Afinitor by Novartis AG — kept cancer in check for a median of 7 months in women whose disease was worsening despite treatment with hormone-blocking drugs. A comparison group that received only hormonal medicine had just a 3-month delay in disease progression. Afinitor works in a novel way, seems “unusually effective” and sets a new standard of care, said Dr. Peter Ravdin, breast cancer chief at the UT Health Science Center in San Antonio. He has no role in the work or ties to drugmakers. Most patients have tumors like those in this study — their growth is fueled by estrogen. Results were released Wednesday at the San Antonio Breast Cancer Symposium and some were published online by the New England Journal of Medicine. They come a few weeks after federal approval was revoked for another Genentech drug, Avastin, that did not meaningfully help breast cancer patients. It still is sold for other tumour types. The new drugs are some of the first major developments since Herceptin came out in 1998. It has become standard treatment for a certain type of breast cancer. “These are powerful advances … an important step forward,” said Dr. Harold Burstein, a breast expert at Dana-Farber Cancer Institute in Boston who had no role in the studies. A reality check: The new drugs are likely to be very expensive — up to $10,000 a month — and so far have not proved to be cures. Doctors hope they might be when given to women with early-stage cancers when cure is possible, rather than the very advanced cases treated in these studies. Even short of a cure, about 40,000 U.S. women each year have cancer that spreads beyond the breast, and treatment can make a big difference in their lives. Rachel Midgett is an example. The 39-year-old Houston woman has breast cancer that spread to multiple parts of her liver, yet she ran a half-marathon in Las Vegas on Sunday. She has had three scans since starting on Afinitor nine months ago, and “every time, my liver lesions keep shrinking,” she said. “My quality of life has been wonderful. It’s amazing. I have my hair. … If you saw me you wouldn’t even know I have cancer.” Genentech, part of the Switzerland-based Roche Group, applied Tuesday to the federal Food and Drug Administration for permission to sell pertuzumab (per-TOO-zoo-mab) as initial treatment for women like those in the study. The drug targets cells that make too much of a protein called HER2 — about one of every four or five breast cancer cases. Herceptin attacks the same target but in a different way, and the two medicines complement each other. The study tested the combination in 808 women from Europe, North and South America and Asia and found a 6-month advantage in how long the cancer stayed stable. All women also received a chemotherapy drug, docetaxel. “That’s a huge improvement” in such advanced cases, said study leader Dr. Jose Baselga, associate director of the Massachusetts General Hospital Cancer Center. He is a paid consultant for Roche. So far, 165 deaths have occurred — 96 among the 406 women given Herceptin and chemo alone, and only 69 among the 402 women also given pertuzumab. Doctors won’t know whether the drug affects survival until there are more deaths. The most common side effects were diarrhea, rash and low white blood cell counts, which often occur with cancer treatment. The dual treatment did not cause more heart problems — an issue with other Herceptin combinations. “We’re really pleased that there were no new safety signals” and that pertuzumab is so promising, said Dr. Sandra Horning, Genentech’s global development chief of cancer drugs. Another study is testing pertuzumab in 3,800 women with early breast cancer. Genentech says it has not set a price for pertuzumab, but sells Herceptin for $4,500 a month to doctors, who mark it up and add fees to infuse it. Herceptin’s U.S. patent expires in 2019, so combination treatment might be more affordable once generic Herceptin is available. “Pertuzumab is a winner” and should win government approval, said Dr. Eric Winer of the Dana-Farber cancer centre. Dr. Gary Lyman, a treatment effectiveness researcher at Duke University, called the results “quite impressive,” unlike what turned out to be the case for Avastin. He was on an FDA panel that recommended accelerated approval for Avastin as well as the recent panel that urged revoking its use for breast cancer because later studies did not bear out its early promise. Winer and Lyman have no role in the new studies or financial ties to any drug companies. The other study tested Novartis AG’s Afinitor, which has long been sold for preventing organ rejection after transplants and to treat a few less common cancers including the type of pancreatic tumour that killed Apple founder Steve Jobs. It blocks one pathway cancer uses to spread. A one-month supply costs $11,000. The 724 women in the study were worsening despite treatment with hormone-blocking medicines. They all were given one they had not taken before, and some also got Afinitor. After about a year of follow-up, cancer progression was delayed 7 months in the group getting Afinitor and 3 months in the others. “The two together have a much greater effect than you would expect from either alone,” said study leader Dr. Gabriel Hortobagyi, breast cancer research chief at the University of Texas MD Anderson Cancer Center in Houston. “They snip two wires that are critical” for growth signals to continue, he said. However, the combo led to more side effects — mouth sores, anemia, shortness of breath, high blood sugar, fatigue and lung inflammation. “I have patients who tell me how long they live is not as important as the quality of the remainder of their life, where other patients will do just about anything and will tolerate any toxic levels or side effects,” Hortobagyi said. “This is clearly one additional option for patients.” The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center. ___ Online: Cancer conference: http://www.sabcs.org ___ Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Biggest Breast Cancer Advance In More Than A Decade?

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Jon Kyl Raises Prospect Of Tax Hostage-Taking Again

December 6, 2011

WASHINGTON — Sen. Jon Kyl announced Monday what it will really take to extend a payroll tax holiday for the middle class: an extension of tax breaks for the wealthy. The Arizona Republican, taking to the Senate floor after Democrats proposed a 1.9 percent surtax on income above $1 million to pay for the payroll tax break, argued that the tax cut didn’t work. But, he said, he’d still support its extension if the wealthy keep their breaks, too. “There’s no evidence this temporary tax cut has produced any new jobs,” Kyl argued, adding that he believes extending it would hurt Social Security, which is funded by the 6.2 percent payroll tax. “This is what pays for Social Security benefits. It’s bad economic policy, it’s bad tax policy, and certainly the surtax that would fund this is something that would very much hurt small business and job creation,” Kyl said, equating small businesses with the million-dollar-plus earners who would pay the surtax. Yet he would maintain the payroll tax cut if Congress also extends the Bush-era income tax cuts, including those for the top brackets. Democrats have long favored keeping the lower Bush rates for most taxpayers, but not for the wealthiest. “We should therefore only do it in circumstances that, in effect, override these objections — one of which would be to extend all of the taxes that expire at the end of next year,” Kyl said. Kyl, the No. 2 Republican in the Senate, appears to be the first GOP leader to raise the prospect of repeating last year’s hostage-taking, when Democrats caved in to GOP demands to extend the Bush-era and estate tax cuts for the rich in return for the payroll tax break, extended unemployment benefits and other breaks. “As I said a year ago, I was willing to support the extension of it because we extended the other tax rates as well,” Kyl said. “[If] we do that again, obviously it’s something that I would be supportive of.” The Democrats’ proposal to extend the payroll tax holiday, which includes the 1.9 percent surtax on incomes above $1 million to help pay for the $185 billion cost, would be deficit-neutral. Kyl’s solution of extending all tax breaks would wipe out the pay-for and would cost at least an additional $70 billion or so a year, based on the price tag for last year’s deal . Kyl also said he’d be open to other ways to pay for a payroll tax extension, but it was unclear what those methods would be, since he voted against Senate Minority Leader Mitch McConnell’s plan last week.

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Goldman Ordered To Hire Consultant To Review Mortgage Loans

September 1, 2011

NEW YORK (Lauren Tara LaCapra) – The U.S. Federal Reserve ordered Goldman Sachs Group Inc to hire a consultant to review practices of a former mortgage subsidiary on Thursday and said it plans to assess a monetary penalty for wrongful foreclosures. The Fed’s crackdown sent Goldman shares down 3.5 percent on Thursday, even as the bank announced that it had completed the sale of Litton Loan Servicing LP, the mortgage-servicing business at the heart of its foreclosure problems. Litton’s regulatory troubles stem largely from the practice of “robosigning,” in which bank employees signed foreclosure documents without reviewing case files as required by law. Many large banks, including Bank of America Corp, JPMorgan Chase & Co, Wells Fargo & Co and Citigroup Inc , have been targets of probes by state and federal regulators over the same issue, in the clean-up after a world financial crisis triggered in large part by bad mortgages in the United States and bonds backed by those loans. The Fed cited “a pattern of misconduct and negligence” at Litton in announcing its enforcement action against Goldman. An outside consultant will have to review all of Litton’s foreclosure activity in 2009 and 2010, to identify borrowers who suffered financial losses due to improper practices. Goldman will have to reimburse those customers and is also responsible for any fines that the Fed assesses after the review is complete. Separately, Goldman also reached a foreclosure-practices pact on Thursday with New York Financial Services Superintendent Benjamin Lawsky, helping clear the way for the bank to sell the business to Ocwen Financial Corp for $264 million. The bank agreed to forgive 25 percent of principal balances for struggling homeowners who are 60 days past due on mortgage payments, at a cost of $53 million. Goldman will also compensate some Litton home loan borrowers for wrongful foreclosures at an indeterminate cost. As part of the deal, Goldman, Litton and Ocwen all pledged to stop the robosigning practice, institute new staffing and training requirements for employees handling foreclosures and withdraw pending foreclosure actions that are based on faulty paperwork. They also agreed to compensate borrowers for wrongful foreclosures and strengthen protections for homeowners in relation to late payment fees and insurance costs. In return, Lawsky agreed to issue a “no objection” letter to the planned Litton-Ocwen transaction. [ID:nN06259001] But the agreement “does not preclude any future investigations of past practices or release any future claims or actions whatsoever,” the state agency said in a statement. Goldman shares closed down $4.06, or 3.5 percent, at $112.16 on the New York Stock Exchange. Ocwen Financial shares closed down 52 cents, or 3.8 percent, at $13.28. Goldman bought Litton in 2007 for $430 million, hoping to glean more information about the subprime mortgage market to help its trading business. But more recently, it has become a money-losing thorn in Goldman’s side. The bank began considering a sale of Litton late last year, as the mortgage market continued to suffer losses and state and federal regulators began investigating industry-wide foreclosure problems. Goldman wrote down the value of the business by $220 million in the first quarter. In a quarterly filing on Aug. 9, Goldman said Litton was facing probes by state attorneys general and banking regulators. A group of the nation’s largest banks are said to be working toward a settlement that could resolve some of those investigations and cost the industry billions of dollars. Ocwen is now the 12th largest mortgage-servicer in the United States after having acquired Litton, a relatively small player that ranked 23rd in the industry. (Additional reporting by Sakthi Prasad in Bangalore; Editing by Robert MacMillan, Steve Orlofsky, Gary Hill) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Report: Skinny Women Make More Money

June 19, 2011

For women constantly battling to drop a few pounds, a new study could be hard to swallow. From TIME : According to a study in the Journal of Applied Psychology, women who are “very thin” earn nearly $22,000 more than their “average weight counterparts.” The study was conducted by Timothy A. Judge from the University of Florida and Daniel M. Cable, from the London Business School, who examined the relationship between income and weight in men and women. The study, which included 23,939 participants, also finds that, while women are financially punished for any weight gain, very thin women receive the most significant drop in pay for the first few pounds of weight they put on. For American women who were below average weight, gaining 25 pounds produced an average salary decrease of $15,500. Once women reach an average weight, the report finds, further weight gain is penalized less, “presumably because the social preferences for a feminine body have already been violated.” Very thin men actually receive less than their average weight counterparts. They are rewarded for weight gain until they become obese, the study finds.

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Cash-Strapped States Cut Funding For HIV, AIDS Drugs

May 23, 2011

Cash-strapped states are scaling back efforts to provide life-saving medicines to HIV patients. The result: more than 8,300 people — a record number — are on waiting lists in 13 states to get antiretrovirals and other drugs used to treat HIV and AIDS or the side effects, mental health conditions or opportunistic infections. And that number probably understates the need, say advocates, who note that many states have simply eliminated waiting lists or reduced eligibility.

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Micromet’s Search-and-Destroy Cancer Missiles Lure Boehringer, Sanofi

June 14, 2010

By Ellen Gibson June 14 (Bloomberg) — Micromet Inc. , a 17-year-old biotechnology company with no medicines on the market, is attracting attention from product-hungry drugmakers. The lure: a technology for fighting cancer without using toxic chemicals. What Micromet has developed is a way to activate T-cells , the elite troops of the immune system, to attack malignancies, including a rare leukemia that strikes children. It has signed partnerships with five of Europe’s largest drug companies: Bayer AG , Sanofi-Aventis SA , AstraZeneca Plc , Merck KGaA and Boehringer Ingelheim GmbH . For years, companies like Micromet have struggled to perfect so-called immunotherapies that mobilize the body’s natural defenses against cancer. At the European Hematology Association ’s meeting in Barcelona on Saturday, Micromet announced that its leukemia treatment led to remission in almost four-fifths of patients in a trial. “With Micromet’s technology, you can give any T-cell the ability to recognize and kill the tumor,” said Michael Morse, an associate professor of medicine and tumor immunology specialist at Duke University School of Medicine in Durham, North Carolina. Although the technology is not fully tested, “there’s every reason to believe that this could work.” The company’s most-advanced drug, blinatumomab, is derived from a common immune-system protein called an antibody that its scientists refashioned to carry out an unnatural task. One end of the protein attracts T cells; the other is engineered to latch onto specific types of cancer cells. Replenishing Armies When batches of these proteins, called BiTEs, for bispecific T-cell engager, are released into the bloodstream, they not only summon the immune cells to attack the cancer, they also stimulate the body to produce more of the cells, thus replenishing its armies. “We’re leveraging the most potent arm of the patient’s immune system and directing it onto the tumor,” said Micromet chief executive officer Christian Itin in an interview. Immunotherapies got a boost on April 29 when the U.S. Food and Drug Administration approved Dendreon Corp. ’s first-of-its- kind cancer vaccine for prostate tumors. The day of its approval, Dendreon’s stock soared as much as 38 percent, and the Nasdaq Biotech Index had its biggest one-day rise in six months. It was a “landmark approval” that gave “positive momentum to the whole biotech space,” said Joseph Pantginis , an analyst at Roth Capital Partners LLC in Newport Beach, CA. Changing Mindset Like Micromet’s drug, Provenge primes the patient’s natural immune system. To make the vaccine, doctors extract white blood cells from a prostate-cancer patient, mix them with vaccine components and inject the combination back into the bloodstream. Provenge “opens a door and changes people’s mindset” about the immunotherapy approach, said Jeffrey Crawford , chief of medical oncology at Duke. The disease blinatumomab is designed to treat, acute lymphocytic leukemia or ALL, isn’t common, but it is a high priority for some doctors. One reason is that two-thirds of the 5,400 new cases in the U.S. each year are children, many of whom only survive with painful chemotherapy that continues for years. In adults the disease is harder to treat than in children; only 30 percent to 40 percent are cured with conventional chemotherapy. At the Barcelona hematology meeting, Micromet showed that blinatumomab can induce complete remission in patients who still had residual leukemia cells after multiple rounds of chemotherapy. About 80 percent of patients who stayed in the study were relapse-free at a median follow-up of 11 months. Killing Leukemia “With older patients, it’s very difficult to rout out the last bit of leukemia,” said Peter Marks , director of leukemia services at Yale-New Haven Hospital. Immunologic methods such as Micromet’s “can be very powerful,” he said. “A treatment that could specifically kill leukemia without causing toxicity would certainly be in demand,” he said. Micromet will begin the last phase of testing required for European approval of blinatumomab this June. Edward Tenthoff , an analyst with Piper Jaffray & Co. in New York, said it could be cleared for use in the U.S. by 2012, and within five years could see $1 billion in annual sales. “There have been no improvements in ALL treatment in three decades,” said Mark Reisenauer , Micromet’s chief commercial officer. “The only comparably underserved disease is melanoma.” Riddled With Cancer Libby Johns is the kind of patient who inspires cancer researchers to try harder. She was diagnosed with ALL in June 2009, a month after her second birthday. When her parents noticed bruising all over her legs, they brought her to the hospital, where doctors found that 90 percent of her bone marrow was riddled with cancer cells. Now three years old, Libby has had blood transfusions and continuous chemotherapy at the Hospital for Sick Children in Toronto, said her mother, Megan. The girl takes pills every day, has intravenous treatments once a month, and shots in the spine once every three months. This cycle, known as the “ maintenance ” phase of treatment, lasts 20 months. Libby must continue the regimen until August of next year. In the course of treatment, Libby’s hair has fallen out three times, and Megan says it’s a struggle to keep the girl’s weight up. Fevers and low blood sugar have put her in and out of the hospital, and when she’s home, the drugs can leave her lethargic. “Some days she doesn’t have the energy to do much,” her mother said. “We just stay home, watch movies, have picnics in the house. I try to let her lead as normal a life as possible.” Few Options While Libby is responding well to treatment, few options are available to children who are not cured with chemotherapy. For adults, who have a high relapse rate, an ineffective procedure called stem cell transplant is the only other line of defense, according to Yale’s Marks. Proven drugs are “very much needed,” he said. Each of Micromet’s partnerships with large drugmakers is aimed at a different, hard-to-treat cancer. The collaboration with Boehringer, announced May 5, will take aim at multiple myeloma , a deadly disease that starts in the bone marrow and often fails to respond to chemotherapy. Pantginis said drugmakers’ interest in the startup goes beyond a desire to license the small company’s drugs. They’re eyeing Micromet’s platform as a way to boost the effectiveness of cancer drugs they already sell, and also to extend the patent protection on those products, he said. If the companies can retool their older drugs using BiTE technology, they can stave off competition from generics in the future. Lab-Grown Proteins The concept of immunotherapy took a long time to bear fruit. In the early 1970s scientists started developing lab- grown proteins called monoclonal antibodies , designed either to block tumor growth or make tumors visible to other immune-system cells. They do this by homing in on specific molecules or “targets” on the surface of cancer cells. The first commercial success came in 1997, when Genentech Inc. and Biogen Idec Inc. launched Rituxan, a drug for non- Hodgkin’s lymphoma. This was followed by best-selling drugs led by Roche Holding AG ’s colon cancer drug Avastin, with almost $6 billion in global sales last year. While these drugs are a big business for companies, most have shortcomings as medicines, said Steven Rosenberg , chief of surgery at the National Cancer Institute in Bethesda, Maryland. “We need to do better than prolonging survival by months,” Rosenberg said. Most of these drugs target just one of multiple drivers of tumor growth. In just a matter of months, tumors in many patients grow resistant to the drugs. Second Generation Scientists at Micromet and other biotech companies said that second-generation antibodies of the sort they are testing will be more effective. Companies like Bothell, Washington-based Seattle Genetics Inc. and Waltham, Massachusetts-based Immunogen Inc. employ what’s known as the “payload” technique. The idea is to link a targeted antibody to a toxic drug that is unleashed once the medicine enters the tumor. One of these experimental drugs, T-DM1 for breast cancer, joins Roche’s best-selling Herceptin to a cancer-killing toxin using Immunogen’s technology and could be approved next year. “The industry understands the limitations of traditional antibodies,” said Micromet CEO Itin. “We’re starting to see very interesting clinical candidates to enhance the activity of antibodies. We’re seeing an evolution.” To contact the reporters on this story: Ellen Gibson in New York at egibson9@bloomberg.net ;

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Novartis Drug Backed by Panel as First Pill to Treat Multiple Sclerosis

June 10, 2010

By Catherine Larkin June 10 (Bloomberg) — Novartis AG won a U.S. panel’s backing to introduce the first pill to treat multiple sclerosis as an alternative to injectable drugs led by Biogen Idec Inc. ’s Avonex and Teva Pharmaceutical Industries Ltd. ’s Copaxone. Novartis’s Gilenia should be “generally recommended” as an initial treatment for MS, not just when other drugs fail, outside advisers to the Food and Drug Administration said in a 21-3 vote today in Silver Spring, Maryland. The panel voted unanimously in favor of the pill’s safety and effectiveness, while saying a lower dose should be tested after approval. The Swiss drugmaker has been in a race with Merck KGaA to sell the first pill to delay progression of MS. The neurological disease affects 2.5 million people worldwide, many of whom have trouble sticking with current therapies because they’re difficult to use or have side effects, according to the National Multiple Sclerosis Society , a New York-based patient group. “This is an enormously effective drug,” said Cynthia Sitcov, the panel’s patient representative. “I hope the agency approves it at the current dose.” The panel voted 20-5 in favor of a new study testing a 0.25 milligram Gilenia pill once a day, which the FDA suggested may be “much safer” than the 0.5 milligram proposed daily dose, which was linked to heart, lung and liver risks and infections in studies. The panel voted unanimously that the study can wait until after the drug is on the market. Novartis said testing a lower dose would take 2,000 patients and five to six years. Shares Rise American depositary receipts of Novartis, each representing one ordinary share, rose $1.52, or 3.3 percent, to $47.45 at 4 p.m. in New York Stock Exchange composite trading . The Basel, Switzerland-based company’s ADRs have declined 13 percent so far this year in New York trading. The FDA usually follows its panels’ recommendations, though it isn’t required to do so. The agency is scheduled to decide whether to approve Gilenia by September. The review, initially set for six months, was delayed three months when Novartis said May 25 that the FDA requested additional analysis of current data. The advisers also recommended that the first dose of the drug be taken under a doctor’s supervision to identify heart rhythm changes linked to starting treatment and suggested that additional testing may be needed to monitor potential eye and lung risks. Les Funtleyder , a health-care strategist at Miller Tabak & Co. in New York, said before the meeting that he expected the drug to become a first-choice option for doctors, also called first-line therapy, with peak sales topping $1 billion a year. ‘Big Advance’ “This will be used in first line eventually,” he said yesterday in a telephone interview. “It’s such a big advance to go to oral from injectable.” Merck, of Darmstadt, Germany, said this week that it had resubmitted its application to sell cladribine tablets as a treatment for MS. The FDA initially rejected Merck’s submission in November, saying it was incomplete. Multiple sclerosis causes the body to attack nerve cells through the immune system. Gilenia and cladribine blunt the attack by targeting white blood cells that harm the protective coating of nerve cells. Cladribine was approved more than a decade ago to fight leukemia. Mitsubishi Tanabe Pharma Corp. , of Osaka, sold rights to Gilenia to Novartis in 1997 and will help the company develop the drug in Japan. Biogen Idec said older treatments such as its Avonex and Tysabri shouldn’t be scrapped if Gilenia, chemically known as fingolimod, is cleared for sale. “While there is a desire among the MS community for the convenience of an oral treatment, it is important for patients and physicians to consider efficacy, safety and long-term experience before choosing any therapy,” the Cambridge, Massachusetts-based company said today in an e-mailed statement. “The safety profile of fingolimod has yet to be established in a larger number of patients in the real-world setting.” To contact the reporter on this story: Catherine Larkin in Silver Spring, Maryland, at clarkin4@bloomberg.net .

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Ecstasy Surge in Los Angeles Triggers Death, 18 Hospitalized after Rave

June 10, 2010

By Tom Randall June 10 (Bloomberg) — Rising use of the stimulant hallucinogen known as ecstasy led to 18 hospitalizations and one death after a New Year’s Eve dance party attended by 45,000 people in Los Angeles, a U.S. investigation found. The hospitalizations resulted from overdoses during the party, not from contaminated pills, according to the report by the U.S. Centers for Disease Control and Prevention in Atlanta. One patient was admitted to the intensive-care unit with multiple organ failure. Another partygoer, not included in the tally, died after consuming ecstasy, cocaine and heroin. The study is the first to examine a cluster of ecstasy- triggered hospital visits after an all-night electronic dance party known as a rave . Use of the drug is increasing, and many overdoses go underreported, according to the report. The number of patients at treatment programs in Los Angeles County citing ecstasy as their drug of choice increased almost sevenfold from 2005 to 2009. “Patients began to arrive at emergency departments shortly after the rave began,” investigators wrote in the report. “This cluster occurred in the setting of a likely overall increase in ecstasy use in Los Angeles County during 2005-2009, indicating a possible ongoing and underreported public health problem.” The party in the report was held at a rented public facility owned jointly by the city of Los Angeles and the state of California. Three separate stages featured music from 6 p.m. local time on December 31 to 4 a.m. on January 1. Raves are all- night dance parties that began in the 1980s at abandoned warehouses and outdoor areas, according to the report. More recently, raves have become organized events. Ecstasy Preference Forensic specimens containing ecstasy in Los Angeles County more than doubled to 13.4 cases per 100,000 residents in 2009 from 5.2 cases per 100,000 in 2005. Ecstasy preference at clinics increased to 1.65 cases per 100,000 residents, from 0.22 per 100,000, according to the study. A tablet obtained from one of the patients contained equal parts of MDMA, the chemical name for ecstasy, and caffeine. Thirteen of the patients had also ingested alcohol or other drugs including marijuana and prescription medications. About 894,000 people in the U.S. used ecstasy for the first time in 2008, a 45 percent increase from 2005, according to an annual survey conducted by the Substance Abuse and Mental Health Services Administration. To contact the reporter on this story: Tom Randall in New York at trandall6@bloomberg.net .

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Gary Shapiro: U.S.-Mexico Trucking Dispute Placing American Jobs at Risk

May 17, 2010

When Mexico’s President Felipe Calderon visits the White House on May 19, I hope President Obama takes time to mend the deteriorating U.S.-Mexico relationship, which recently soured over a trucking dispute. Last year, the Obama Administration responded to union requests that reversed several years of policy and blocked Mexican long-haul trucks from crossing the U.S. border. The Administration’s ruse of truck safety flew in the face of a total lack of evidence and years of peaceful trade. Mexico responded quickly…exercising legal rights under longstanding agreements by slapping high tariffs on $2.4 billion worth of American products. These tariffs hurt many American producers, including farmers and manufacturers. Reopening the U.S. border to Mexican long-haul trucks would lift the excessive tariffs placed on U.S. products. Such action would contribute greatly toward achieving President Obama’s pledge to double exports in the next five years. It would also help save and create some 25,000 U.S. jobs affected by the trading relationship , according to economists Laura M. Baughman and Joseph F. Francois. The only way to provide relief to those sectors affected by the tariffs is to do the right thing–reinstate the cross-border trucking program. Trade between the United States and Mexico totaled $368 billion in 2008, making Mexico our third-largest U.S. trading partner. As I first wrote in Huffington Post a year ago (See “Trucks, Drugs and NAFTA” ) at the start of this trade dispute, difficult economic times call for open markets to American goods. Instead, we have once again bowed to the pressures of big labor and unions who allege that Mexican trucks are not safe on U.S. highways. The union argument is nothing more than thinly veiled protectionism. Our government has a short window of opportunity to end this economically senseless dispute with Mexico. In two days, the presidents of these most powerful nations in the world will meet. They’ll surely focus on national security issues, drug wars and civil society, and it’s a perfect opportunity to also talk trade. I hope that President Obama will put the U.S.-Mexico trucking issue behind us by resolving this job killing, baseless, stand-off; U.S. manufacturers and farmers must pay hundreds of millions in high tariffs and these products cost so much as to be non-competitive. We cannot be taken seriously as a global leader on trade when we don’t even play by the rules we helped establish. Gary Shapiro is the president and CEO of the Consumer Electronics Association, which represents more than 2,000 U.S. technology companies.

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Onyx Anti-Tumor Medicine Nexavar Shows Broader Potential in Cancer Studies

April 19, 2010

By Ellen Gibson April 19 (Bloomberg) — Onyx Pharmaceuticals Inc. and Bayer AG’s Nexavar for liver and kidney tumors may have broader usefulness, according to a study testing how gene mutations affect drug effectiveness. The study found that Nexavar prevented lung-cancer from progressing in 61 percent of patients with KRAS mutations. The research, presented yesterday at the meeting of the American Association for Cancer Research in Washington, was designed to show how gene testing of tumors can improve treatment when drugs are matched with biomarkers that predict their success. Nexavar, not currently approved for lung tumors, showed the highest disease control of the four drugs used in the study of lung-cancer patients. The results from the study, dubbed BATTLE, were surprising because Nexavar had not worked in a previous trial of lung-cancer patients. “BATTLE arguably does indicate Nexavar has activity in this disease,” said Christopher Raymond , an analyst at Robert W. Baird & Co., in a note to investors. Not only does this data provide more evidence that tailored treatments work better, it helps answer the question, “What drugs can we move forward with?” said thoracic oncologist Edward Kim , who led the study at the University of Texas M.D. Anderson Center. Nexavar “is approved in two tumor types already. It gives us some nice hypotheses for further trials.” Onyx rose 65 cents, or 2.2 percent, to $30.78 at 9:40 a.m. in Nasdaq Stock Market composite trading. Earlier, the shares climbed 3.6 percent to $31.22, the biggest increase in a month. In the lung-cancer study, patients who had been treated with chemotherapy in the past underwent another biopsy. Tumor samples were tested for cancer biomarkers, including mutations to a gene called KRAS and EGFR, or epidermal growth factor receptor, a cell-signaling protein that causes cancer cells to grow and divide. Tumor Biomarkers Patients were placed into five marker groups. A first subset of patients was assigned to one of four drugs without regard to their biomarkers. Then patients in a second wave were assigned to medicines based on their particular tumor biomarkers, taking into consideration how people in the first group with similar biomarkers were faring. Overall disease control — defined as “non-progression” of the cancer — among all participants was 46 percent after eight weeks, Kim said. However, about 61 percent of patients with KRAS mutations had non-progression of their cancer when given Nexavar, Kim said in an Apr. 13 phone interview. By comparison, patients with KRAS mutations assigned to Tarceva, a treatment designed to inhibit EGFR, had just 22 percent disease control. Tarceva is jointly sold by Roche Holding AG , based in Basel, Switzerland, and OSI Pharmaceuticals Inc. , of Melville, New York. Nexavar Surprise Nexavar also showed the highest overall disease control of all the treatments in the study at 58 percent of patients. Other drugs used in the study were AstraZeneca Plc’s experimental Zactima and Eisai Co.’s Targretin. The Nexavar results were a surprise, according to the M.D. Anderson researchers. Two years ago, Bayer and Onyx halted a trial of Nexavar because the medicine failed to help lung cancer patients live longer than standard treatment. The KRAS mutation is found in 20 percent of lung-cancer patients and “nothing works,” said Roy Herbst , chief of thoracic oncology and co-author of the study. “When we treated them with Nexavar, we saw they did very well,” said Kim, director of clinical research in thoracic oncology. Nexavar, co-marketed by Leverkusen, Germany-based Bayer and Emeryville, California-based Onyx, is in the last stage of testing required for U.S. approval as a third-line monotherapy for lung cancer and as a first-line treatment in combination with chemotherapy, according to Onyx spokesperson Lori Murray . Next Steps “We’re very pleased that KRAS-mutated patients responded favorably,” Murray said of today’s study. “Onyx and Bayer are evaluating to determine potential next steps in our lung cancer development program.” Nexavar is approved for use in patients with kidney cancer and inoperable liver cancer, and worldwide sales of the drug were $844 million in 2009. While this study shows Nexavar can work in lung-cancer patients as a third or fourth line of treatment, winning approval as a first-line treatment in combination with chemotherapy “would be more meaningful commercially,” said Howard Liang , an analyst at Leerink Swann in Boston. Some doctors say they would like to see independent follow- up studies. “The results are surprisingly good,” said Anil Potti , an associate professor of medicine at Duke University, “but I hesitate to commit to the fact that this is a valuable drug in lung cancer yet.” For Related News and Information: Today’s most popular health-care stories: MNI HEA Top health stories: HTOP Bloomberg drug database: BDRG Onyx’s peer comparison: ONXX US RVR

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Prozac Pilots Can Fly as U.S. FAA Drops Decades-Old Ban on Four Medicines

April 2, 2010

By John Hughes April 2 (Bloomberg) — Pilots taking Prozac will be permitted to fly as U.S. regulators drop a decades-old ban on four antidepressants including the Eli Lilly and Co. drug. Risks from side effects, such as drowsiness, associated with the medications used to treat depression don’t pose a safety threat, the Federal Aviation Administration will announce today. “We have a better understanding of the drugs,” FAA Administrator Randy Babbitt said in an interview. “We know more about the illness, we know more about how to treat it.” The policy, which goes into effect on April 5, may cover as many as 10,000 pilots, such as aviators grounded because they suffer from depression or who take antidepressants in violation of rules, said Fred Tilton, the federal air surgeon. Organizations led the Aircraft Owners and Pilots Association, which represents 415,000 small-plane pilots, and the Air Line Pilots Association, the largest union for cockpit crews, had sought to lift the restriction. The FAA said its action is consistent with the views of the groups. “We really need to remove the stigma, if you will, of being treated for an illness,” Babbitt said. Under the policy, pilots can seek FAA permission to take one of four drugs — Lilly’s Prozac, Pfizer Inc. ’s Zoloft or Forest Laboratories Inc. ’s Celexa or Lexapro. Prozac, Zoloft and Celexa have lost patent protection and are available in generic form. Lexapro had $2.3 billion in revenue last year. All four drugs are in a class of antidepressants called SSRI’s, which help regulate mood by blocking reabsorption of the chemical serotonin, believed to play a role in behavior. The drugs give the brain access to more serotonin. Depression Bans FAA policy bans pilots from flying if they have depression because the condition can be distracting in the cockpit and pose a safety risk, according to the agency. Under the new policy, pilots with depression can seek treatment with one of the four medications and keep flying. An estimated 20 million people in the U.S. have depression , which can cause thoughts of suicide, sadness and feelings of worthlessness, according to the National Institutes of Health. The U.S. had almost 614,000 active pilots in 2008, the most recent FAA statistics, with about 95,000 working for commercial airlines, Tilton said. Pilots who show success controlling their depression for 12 months using one of the medications will be able to seek permission to fly, according to the FAA. The pilots will be monitored by FAA health specialists as an additional safeguard, the agency said. Pilots who violate the rule by flying without disclosing their antidepressant use will have amnesty for six months to step forward, Tilton said. Those pilots will be grounded, and could be eligible to fly within a few months if they show a successful history of treatment, he said. As many as 10 percent of Americans were taking an antidepressant as of 2005, the most recent time period available in a Columbia University study released last year. To contact the reporters on this story: John Hughes in Washington at jhughes5@bloomberg.net .

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Tahir Amin and Priti Radhakrishnan: When Medical Patents Weaken Health Care

April 1, 2010

As the health care debate limps forward, it’s time to consider a related but entirely overlooked topic: the availability of medicines. Ironically, the greatest barrier to making existing medicines more available or innovating new ones is an abused patent system. One major step forward — especially in developing countries — is to stop approving many frivolous drug patent applications. Yes, stop. As intellectual property lawyers, we know that without legal protection, scientific and commercial daring will wither. But in the pharmaceutical field, the patent system has recently become less a legitimate ally of invention and more a manipulative crutch for profit seeking. Fortunately, change may be coming for the patients who most need it — HIV/AIDS sufferers. Here’s how the system works in theory: when a drugmaker is granted a patent, the company is usually given a 20-year window of exclusivity to sell the medicine, after which the drug compound becomes available in the public domain. Quite often, generic manufacturers then enter the market and produce the medication at significantly lower prices. Pharmaceutical companies anticipate the end of exclusivity and pour resources into developing the next innovative treatment. Private actors who work hard to innovate should get a competitive advantage and the monopoly protection a patent confers. Private actors who bankroll lawyers to “innovate” multiple frivolous patent applications should not get the same privileges. But they are. Instead of looking for what’s next, the global pharmaceutical industry is exploiting its current stockpile. Often easier than creating new medicines, companies use patent laws around the world to harden their monopolies and protect their sales. Their method is to make slight changes to medications and submit new patent applications claiming entirely new innovations. These alterations usually don’t change the therapeutic impact of the drug. They don’t generate additional clinical benefits but rather simply represent a different method of manufacture, delivery, or storage. Frivolously extending old patents halts generic production and sales. The results are especially disastrous for HIV/AIDS sufferers. Especially in the developing world, when lower-cost generic versions of medications are not available, millions of poor people go without treatment because they cannot afford the patented drug. But there may be hope. Recent decisions by the Indian Patent Office establish a new standard of clinical benefit for the patient, by which patent applications are judged, making it more difficult for pharmaceutical companies to keep claiming exclusivity. This standard will be very helpful in a pending case. Abbott Laboratories has filed a patent application for the drugs Lopinavir/Ritonavir, arguably the most vital protease inhibitors in the world and essential to prevent the onset of AIDS in HIV-positive patients. But this is not the first time Abbott has sought a patent for Lopinavir/Ritonavir. In fact, it is the 30th time. Since 1992, the company has made dozens of minor modifications to the basic compound and sought patent approval around the globe in order to cement its monopoly. This time, in India, Abbott has combined several existing — and already patented! -techniques to help patients store the medicine without refrigeration, and take fewer pills. We applaud this move. But it is simply not a new invention, and each modification Abbott is adding has already been patented. Pharmaceutical companies can’t hide behind the periodic table of elements to defend their manipulation of patent systems. If the Indian Patent Office follows its new string of decisions and rejects the application, generic drugmakers are ready. Indian generic companies already supply developing countries with the cheapest possible HIV drugs. Competition led by the Indian manufacturers has brought ARV prices down from $10,000 per patient, per year, in 2000 to $130 in 2009. The numbers that really count are human. Generic Lopinavir/Ritonavir could save 200,000 lives in 43 countries. One drug, one rejected patent, one cost savings, 200,000 lives. And that’s just the beginning. Worldwide, there are almost ten million patients who need HIV drugs. Most can’t afford them. If the developing world flexed its new global muscles and established a 21st century standard of clinical benefit for patenting pharmaceuticals, tens of millions of lives would be healthier. From the patent office to human betterment. Isn’t that what the UK Parliament had in mind in 1624 when it authorized the first patent system? Let’s bring it into the modern age for modern needs. Let’s make denying weak patents the new frontier of science for patients.

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Health Law’s Biggest Surprise Is Page 1,617 Demanding What Drugs Work Best

March 25, 2010

By Alex Nussbaum, Meg Tirrell and Pat Wechsler March 25 (Bloomberg) — Page 1,617 of the 2,400-page law signed by President Barack Obama this week — the most sweeping change to U.S. health-care in 45 years — sparked little of the debate surrounding the expansion of coverage to 32 million Americans or its tax on employees’ “Cadillac” insurance plans. Yet the 43-page measure tucked inside the bill may have a far greater effect on medical care. The overhaul creates an institute, funded with $500 million or more annually, to spur studies of which drugs, devices and medical procedures work best. The boost for comparative- effectiveness research, as the field is known among health experts, will increase scrutiny on treatments used by millions of Americans, including cholesterol drugs led by Pfizer Inc. ’s Lipitor and heart stents from Medtronic Inc. , said John Sullivan , an analyst at Leerink Swann & Co. The findings may add scientific rigor to doctors’ decisions sometimes influenced more by marketing, said Jeffrey Lerner of the ECRI Institute , a nonprofit that conducts such research. In a health overhaul attacked by critics as too pricey, it’s one of the few measures with a chance to rein in U.S. medical spending that soared to $2.5 trillion last year, Sullivan said. Comparative effectiveness will probably be “a headwind for the health-care industry ,” the Boston-based analyst said in a March 23 phone interview. “If research shows that less complex and maybe less expensive products and therapies work just as well, that is not good news” for the companies. Subsidize Coverage The overhaul, the culmination of a yearlong battle between Democrats and Republicans, tightens restrictions on insurers, increases taxes on health-care companies and requires most Americans to get insured. The House voted March 21 to approve the bill, 219 to 212. Congressional Republicans, who unanimously opposed the legislation, will campaign this fall on a promise to repeal it, said Kentucky Senator Mitch McConnell , the Senate GOP minority leader, after Obama’s bill-signing. The law “cuts Medicare a half a trillion dollars, raises taxes by half a trillion dollars, and in all likelihood will drive the cost of insurance up,” he said. Comparative effectiveness is one of multiple tools in the law designed to pry savings from the system, said Peter Orszag , Obama’s budget director, in a March 23 telephone interview. The legislation also experiments with new payment systems for doctors, penalizes hospitals with high readmission rates and creates an independent commission to decide which treatments Medicare should pay for, he said. ‘Lower-Cost System’ “I don’t think there’s any one piece that, by itself, is the end-all-be-all” for slowing the growth in medical expenses, he said. “Together, they work to move toward a higher-quality, lower-cost system over time.” The health bill’s funding builds upon $1.1 billion approved by Congress last year for effectiveness research. The new legislation creates a nonprofit Patient-Centered Outcomes Research Institute and tasks it with setting a national agenda for the studies, as well as providing more money and disseminating results. The institute will be run by a 19-member board of governors with three representatives of drug, device and diagnostic- testing companies as well as patient advocates, doctors and the National Institutes of Health . The U.S. Comptroller General , a presidential appointee, must name the board within six months. Its funding will start at $10 million this year and reach about $500 million in 2013 when money from Medicare and a new insurer tax kicks in, according to an estimate from the Brookings Institution , a Washington-based research center. The budget may increase if insurance rolls grow, Brookings estimates. Spending Doubled National health-care spending has more than doubled over the last 35 years as a share of the overall economy, the Congressional Budget Office said in a December 2007 report . Even so, the U.S. lags behind other countries in life-expectancy and infant mortality rates, said Douglas Elmendorf , the agency’s director, in testimony to Congress last March. Studies suggest less than half of all medical care is backed up by adequate evidence of its effectiveness and “a substantial share” of spending “contributes little if anything to the overall health of the nation,” he said. The health-care law focuses on studies that assess effectiveness rather than compare costs. It also bars Medicare, the U.S. government insurer for the elderly, from using the research as the sole grounds for denying reimbursement for medical products or procedures. ‘Substantial’ Savings Still, “the savings can be substantial if you’re drawing a clinical study conclusion that a generic drug works as well as a branded drug,” said Leerink Swann’s Sullivan, offering one example of research that may be done. Therapies used by large numbers of people are likely to be investigators’ first targets. “You’re talking about saving not pennies on the dollar, but very substantial savings” if patients can replace a branded drug with a generic, he said. Along with statins such as New York-based Pfizer ’s Lipitor, Sullivan cited anti-inflammatory drugs that include Remicade, made by Johnson & Johnson of New Brunswick, New Jersey, and heart stents manufactured by Minneapolis-based Medtronic and Boston Scientific Corp. of Natick, Massachusetts. The research is likely to spur consolidation among health- care companies, said Lerner, chief executive officer at the ECRI Institute based in Plymouth Meeting, Pennsylvania, which serves governments and hospital systems. Smaller manufacturers may not have the resources to rebut studies questioning a product’s value, he said by telephone. Facing Competition “When you compete against other technologies, you’re going to have to demonstrate scientifically that you measure up and that takes time and money and sophistication,” Lerner said. “The companies are now going to have to not just launch new products with marketing hype, but they’re going to have to demonstrate evidence of superior clinical effectiveness,” said Vivian Coates , an ECRI vice-president. The fallout from a 2005 study of antipsychotic medications shows the most effective treatment doesn’t always win, said Robert Rosenheck , a psychiatry professor at Yale University School of Medicine in New Haven, Connecticut. The U.S.-backed study found a 50-year-old drug that may cost about $2.50 a day worked as well as newer medicines priced eight times higher, Rosenheck said. Sales of the next-generation antipsychotics, led by AstraZeneca Plc ’s Seroquel, Eli Lilly & Co. ’s Zyprexa and Johnson & Johnson’s Risperdal, nonetheless jumped 43 percent in four years to $14.75 billion by 2009, according to IMS Health Inc. , a collector of prescription-drug data based in Norwalk, Connecticut. “The overwhelming weight of very aggressive marketing for 15 years shapes attitudes in ways that aren’t likely to be changed by research,” said Rosenheck, author of two antipsychotic comparison studies, in a telephone interview. Active Marketing Comparative studies changed treatment of breast cancer, spurring doctors to end the routine removal of entire breasts after research found less drastic operations just as effective, Rosenheck said. “But those are mostly where there was no private corporation actively marketing its perspective.” Orszag, an economist trained at Princeton University in New Jersey and the London School of Economics, is a longtime proponent of comparative effectiveness. Orszag grew frustrated as a scholar at the Brookings Institution when so much attention was paid to the rising cost of Social Security, he said in a May interview. Health care represented a far larger share of the nation’s economy, he said. The budget chief eventually discovered the work of the Dartmouth Atlas of Health Care , a national study on regional variations on medical spending and outcomes in the U.S. Researchers at Dartmouth suggested $700 billion may be saved annually by eliminating differences in the cost of similar procedures and foregoing treatments not proven to help patients. ‘Huge Efficiencies’ “Huge efficiencies could be gained if we change the way we practice medicine,” Orszag said in May, when he argued for a government institute to gather more evidence. Republican critics argued throughout the yearlong overhaul battle that the concept was a stealth effort to deny health care to people who need it. The overhaul’s support for comparative research, tied to Medicare and the insurer tax, is “unprecedented” and should help insulate the program from politics, said Daniel Mendelson , a health-care expert in the White House Office of Management and Budget under former President Bill Clinton. The dedicated funding “shows the very, very deep commitment among members of Congress” to such studies, said Mendelson, now chief executive officer at Avalere Health LLC , a Washington consulting firm with government and industry clients. ‘Part of the Dialogue’ Companies need to recognize that comparative research is “a permanent part of the dialogue,” he said. Drugmakers , led by Pfizer, support the effort as “an important solution for better quality and ultimately better value in health-care,” said Randy Burkholder, an associate vice-president at PhRMA , the industry’s trade group in Washington, in a telephone interview. Device companies agree, said David Nexon, an executive vice-president for the industry’s AdvaMed trade group. Device makers favor the legislation because it focuses on clinical effectiveness, rather than cost, and because manufacturers will be part of the decision-making, he said in a telephone interview. The research may speed use of technologies proven better than existing treatments, Nexon said. “It takes about 17 years until a new technology is fully accepted as the dominant practice even for something that’s new and better,” he said March 23. “If you’ve got something that’s really superior, having these studies validate that can really speed up the adoption of new practices.” Volume and Value The research will have to overcome a payment system that rewards doctors for the volume of care done, rather than its value, said Devon Herrick , a health economist at the nonprofit National Center for Policy Analysis in Dallas. “There’s really very little incentive for a physician or hospital to follow cost-effectiveness studies,” Herrick said. “Often what we consider to be waste, a hospital considers that revenue . Traditionally, doctors never had to know about the cost of the drugs they’re prescribing. “Quite often what happens is you go to your doctor and they pull a free sample out of the pill cabinet,” Herrick said. “People like getting something for free, but they don’t know it’s the highest-price drug that the companies want to promote,” he said. To contact the reporters on this story: Alex Nussbaum in New York anussbaum1@bloomberg.net ; Meg Tirrell in New York at mtirrell@bloomberg.net ; Pat Wechsler in New York at +1- pwechsler@bloomberg.net .

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Health Law’s Biggest Surprise Is Page 1,617 Demanding What Drugs Work Best

March 25, 2010

By Alex Nussbaum, Meg Tirrell and Pat Wechsler March 25 (Bloomberg) — Page 1,617 of the 2,400-page law signed by President Barack Obama this week — the most sweeping change to U.S. health-care in 45 years — sparked little of the debate surrounding the expansion of coverage to 32 million Americans or its tax on employees’ “Cadillac” insurance plans. Yet the 43-page measure tucked inside the bill may have a far greater effect on medical care. The overhaul creates an institute, funded with $500 million or more annually, to spur studies of which drugs, devices and medical procedures work best. The boost for comparative- effectiveness research, as the field is known among health experts, will increase scrutiny on treatments used by millions of Americans, including cholesterol drugs led by Pfizer Inc. ’s Lipitor and heart stents from Medtronic Inc. , said John Sullivan , an analyst at Leerink Swann & Co. The findings may add scientific rigor to doctors’ decisions sometimes influenced more by marketing, said Jeffrey Lerner of the ECRI Institute , a nonprofit that conducts such research. In a health overhaul attacked by critics as too pricey, it’s one of the few measures with a chance to rein in U.S. medical spending that soared to $2.5 trillion last year, Sullivan said. Comparative effectiveness will probably be “a headwind for the health-care industry ,” the Boston-based analyst said in a March 23 phone interview. “If research shows that less complex and maybe less expensive products and therapies work just as well, that is not good news” for the companies. Subsidize Coverage The overhaul, the culmination of a yearlong battle between Democrats and Republicans, tightens restrictions on insurers, increases taxes on health-care companies and requires most Americans to get insured. The House voted March 21 to approve the bill, 219 to 212. Congressional Republicans, who unanimously opposed the legislation, will campaign this fall on a promise to repeal it, said Kentucky Senator Mitch McConnell , the Senate GOP minority leader, after Obama’s bill-signing. The law “cuts Medicare a half a trillion dollars, raises taxes by half a trillion dollars, and in all likelihood will drive the cost of insurance up,” he said. Comparative effectiveness is one of multiple tools in the law designed to pry savings from the system, said Peter Orszag , Obama’s budget director, in a March 23 telephone interview. The legislation also experiments with new payment systems for doctors, penalizes hospitals with high readmission rates and creates an independent commission to decide which treatments Medicare should pay for, he said. ‘Lower-Cost System’ “I don’t think there’s any one piece that, by itself, is the end-all-be-all” for slowing the growth in medical expenses, he said. “Together, they work to move toward a higher-quality, lower-cost system over time.” The health bill’s funding builds upon $1.1 billion approved by Congress last year for effectiveness research. The new legislation creates a nonprofit Patient-Centered Outcomes Research Institute and tasks it with setting a national agenda for the studies, as well as providing more money and disseminating results. The institute will be run by a 19-member board of governors with three representatives of drug, device and diagnostic- testing companies as well as patient advocates, doctors and the National Institutes of Health . The U.S. Comptroller General , a presidential appointee, must name the board within six months. Its funding will start at $10 million this year and reach about $500 million in 2013 when money from Medicare and a new insurer tax kicks in, according to an estimate from the Brookings Institution , a Washington-based research center. The budget may increase if insurance rolls grow, Brookings estimates. Spending Doubled National health-care spending has more than doubled over the last 35 years as a share of the overall economy, the Congressional Budget Office said in a December 2007 report . Even so, the U.S. lags behind other countries in life-expectancy and infant mortality rates, said Douglas Elmendorf , the agency’s director, in testimony to Congress last March. Studies suggest less than half of all medical care is backed up by adequate evidence of its effectiveness and “a substantial share” of spending “contributes little if anything to the overall health of the nation,” he said. The health-care law focuses on studies that assess effectiveness rather than compare costs. It also bars Medicare, the U.S. government insurer for the elderly, from using the research as the sole grounds for denying reimbursement for medical products or procedures. ‘Substantial’ Savings Still, “the savings can be substantial if you’re drawing a clinical study conclusion that a generic drug works as well as a branded drug,” said Leerink Swann’s Sullivan, offering one example of research that may be done. Therapies used by large numbers of people are likely to be investigators’ first targets. “You’re talking about saving not pennies on the dollar, but very substantial savings” if patients can replace a branded drug with a generic, he said. Along with statins such as New York-based Pfizer ’s Lipitor, Sullivan cited anti-inflammatory drugs that include Remicade, made by Johnson & Johnson of New Brunswick, New Jersey, and heart stents manufactured by Minneapolis-based Medtronic and Boston Scientific Corp. of Natick, Massachusetts. The research is likely to spur consolidation among health- care companies, said Lerner, chief executive officer at the ECRI Institute based in Plymouth Meeting, Pennsylvania, which serves governments and hospital systems. Smaller manufacturers may not have the resources to rebut studies questioning a product’s value, he said by telephone. Facing Competition “When you compete against other technologies, you’re going to have to demonstrate scientifically that you measure up and that takes time and money and sophistication,” Lerner said. “The companies are now going to have to not just launch new products with marketing hype, but they’re going to have to demonstrate evidence of superior clinical effectiveness,” said Vivian Coates , an ECRI vice-president. The fallout from a 2005 study of antipsychotic medications shows the most effective treatment doesn’t always win, said Robert Rosenheck , a psychiatry professor at Yale University School of Medicine in New Haven, Connecticut. The U.S.-backed study found a 50-year-old drug that may cost about $2.50 a day worked as well as newer medicines priced eight times higher, Rosenheck said. Sales of the next-generation antipsychotics, led by AstraZeneca Plc ’s Seroquel, Eli Lilly & Co. ’s Zyprexa and Johnson & Johnson’s Risperdal, nonetheless jumped 43 percent in four years to $14.75 billion by 2009, according to IMS Health Inc. , a collector of prescription-drug data based in Norwalk, Connecticut. “The overwhelming weight of very aggressive marketing for 15 years shapes attitudes in ways that aren’t likely to be changed by research,” said Rosenheck, author of two antipsychotic comparison studies, in a telephone interview. Active Marketing Comparative studies changed treatment of breast cancer, spurring doctors to end the routine removal of entire breasts after research found less drastic operations just as effective, Rosenheck said. “But those are mostly where there was no private corporation actively marketing its perspective.” Orszag, an economist trained at Princeton University in New Jersey and the London School of Economics, is a longtime proponent of comparative effectiveness. Orszag grew frustrated as a scholar at the Brookings Institution when so much attention was paid to the rising cost of Social Security, he said in a May interview. Health care represented a far larger share of the nation’s economy, he said. The budget chief eventually discovered the work of the Dartmouth Atlas of Health Care , a national study on regional variations on medical spending and outcomes in the U.S. Researchers at Dartmouth suggested $700 billion may be saved annually by eliminating differences in the cost of similar procedures and foregoing treatments not proven to help patients. ‘Huge Efficiencies’ “Huge efficiencies could be gained if we change the way we practice medicine,” Orszag said in May, when he argued for a government institute to gather more evidence. Republican critics argued throughout the yearlong overhaul battle that the concept was a stealth effort to deny health care to people who need it. The overhaul’s support for comparative research, tied to Medicare and the insurer tax, is “unprecedented” and should help insulate the program from politics, said Daniel Mendelson , a health-care expert in the White House Office of Management and Budget under former President Bill Clinton. The dedicated funding “shows the very, very deep commitment among members of Congress” to such studies, said Mendelson, now chief executive officer at Avalere Health LLC , a Washington consulting firm with government and industry clients. ‘Part of the Dialogue’ Companies need to recognize that comparative research is “a permanent part of the dialogue,” he said. Drugmakers , led by Pfizer, support the effort as “an important solution for better quality and ultimately better value in health-care,” said Randy Burkholder, an associate vice-president at PhRMA , the industry’s trade group in Washington, in a telephone interview. Device companies agree, said David Nexon, an executive vice-president for the industry’s AdvaMed trade group. Device makers favor the legislation because it focuses on clinical effectiveness, rather than cost, and because manufacturers will be part of the decision-making, he said in a telephone interview. The research may speed use of technologies proven better than existing treatments, Nexon said. “It takes about 17 years until a new technology is fully accepted as the dominant practice even for something that’s new and better,” he said March 23. “If you’ve got something that’s really superior, having these studies validate that can really speed up the adoption of new practices.” Volume and Value The research will have to overcome a payment system that rewards doctors for the volume of care done, rather than its value, said Devon Herrick , a health economist at the nonprofit National Center for Policy Analysis in Dallas. “There’s really very little incentive for a physician or hospital to follow cost-effectiveness studies,” Herrick said. “Often what we consider to be waste, a hospital considers that revenue . Traditionally, doctors never had to know about the cost of the drugs they’re prescribing. “Quite often what happens is you go to your doctor and they pull a free sample out of the pill cabinet,” Herrick said. “People like getting something for free, but they don’t know it’s the highest-price drug that the companies want to promote,” he said. To contact the reporters on this story: Alex Nussbaum in New York anussbaum1@bloomberg.net ; Meg Tirrell in New York at mtirrell@bloomberg.net ; Pat Wechsler in New York at +1- pwechsler@bloomberg.net .

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`Berkeley Mafia’ Now Has $514 Billion at Stake: William Pesek

March 7, 2010

Commentary by William Pesek March 8 (Bloomberg) — It’s quite troubling that Sri Mulyani Indrawati has been roped into a corruption scandal. Indonesia’s finance minister isn’t necessarily shady. If she were, my confidence in Southeast Asia’s biggest economy would be shaken. Many are wisely giving Sri Mulyani the benefit of the doubt after parliament voted for a criminal probe of a bank bailout that she helped engineer. This is probably dodgy politics aimed at robbing President Susilo Bambang Yudhoyono of his most competent staffers, including Vice President Boediono . What is clear is that politics have taken an erratic turn that will distract policy makers from the economy and that’s bad news for investors. Those looking to score political points are missing the big picture: Indonesia’s $514 billion economy hangs in the balance. There is much riding on how Yudhoyono handles a crisis that threatens one of the world’s most promising nations. Handle it well, and investors’ esteem for Indonesia will increase. Bungle the crisis and skepticism will grow. The common view that Indonesia is an obvious buy must now be in question. Indonesia’s economy is famously corrupt. Transparency International ranks it behind Egypt, Djibouti and Algeria in its latest Corruption Perceptions Index . It’s moving in the right direction, though, and investors are noticing. The Jakarta Composite Index surged 87 percent in 2009. The rupiah gained 16 percent against the dollar. Sri Mulyani deserves considerable credit for the macroeconomic stability that is impressing markets. A decade ago, the economy was dusting itself off from the Asian crisis and 32 years of corrupt leadership under dictator Suharto . Back then, Indonesia risked going the way of the Soviet Union. Today, it’s among the most stable economies in Asia. ‘Berkeley Mafia’ The “Berkeley Mafia” is having the last laugh. That’s the colorful band of economists sent to study at the California university in the mid-1960s. They returned home championing low inflation, balanced budgets and deregulation. They had much to do. The economy Suharto inherited was a mess, with four-digit inflation and a mountain of debt. His predecessor, Sukarno, spent 20 years lavishing money on expensive monuments, nationalizing industry and funding budget deficits with excessive borrowings from abroad. The Berkeley Mafia helped turn things around. Growth averaged 6.5 percent a year from 1965 to 1997, when Southeast Asia crashed. Over time, though, Suharto did his part to foul things up anew. Suharto’s rule was dominated by family, friends and a military of unchecked influence. In 2007, a few months before Suharto’s death, the United Nations Office on Drugs and Crime alleged he stole as much as $35 billion, 1.3 percent a year on average of gross domestic product. Suharto’s lawyer dismissed the claim as fiction. Suharto Inc. Indonesia is still trying to dismantle Suharto Inc. Many of the policies Yudhoyono has used since 2004 to do that are Berkeley Mafia-esque. That success helps explain why the president is standing by his finance minister and not showing her the door. At least not yet. Sri Mulyani is part of the new, improved Indonesian mystique. Asia’s most high-profile female economic official is also one of the most respected. Sri Mulyani has been a competent, calming presence, one of the adults in the room as her young democracy prepares itself to join the ranks of the “BRIC” economies — Brazil, Russia, India and China. When Sri Mulyani travels to Davos, Switzerland, for the annual meeting of the World Economic Forum or visits Tokyo, New York and London, people listen. When she explains what’s afoot in Jakarta in her matter-of-fact way, she instills trust and reflects well on her boss, Yudhoyono. Dangerous Game So, if you are an ambitious politician who wants to wound the president, who better to go after than his star finance minister? Let’s go one better and go after Yudhoyono’s right hand, Boediono. What makes sense politically is a dangerous game to play with the nation’s 235 million people. The investigation that parliament approved involves the 6.7 trillion rupiah ($721 million) rescue of PT Bank Century in 2008. While everyone agrees there were abuses during the process, lawmakers are split on whether Boediono, who was central-bank governor at the time, and Sri Mulyani should be legally responsible. Boediono and Sri Mulyani argue that the bailout helped the country weather the global credit crisis. It occurred amid the market chaos that followed the collapse of Lehman Brothers Holdings Inc. Just as many Americans cringed at their government propping up Wall Street, many Indonesians looked askance at saving PT Bank Century. Systemic Failure Here is how Yudhoyono put it in a March 4 speech: “Why should we save a bank that has been clumsily managed and led by people who ran away with their customers’ money? No matter how disturbed we were with that, the government had to rescue the Indonesian economy from a systemic failure.” Legitimate questions should be raised, yet it’s hard not to conclude the campaign against Sri Mulyani is personal. Some well-heeled politicians saw their net worth dwindle when Sri Mulyani opposed closing the bourse as shares plunged in 2008. Corruption and bad infrastructure slow the process of spreading the benefits of growth and reducing poverty. Risks of terrorism in the nation with the largest Muslim population make it harder to attract the investment needed to maintain last year’s 4.5 percent growth rate. This is as big a test as Yudhoyono will ever face. ( William Pesek is a Bloomberg News columnist. The opinions expressed are his own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. To contact the writer of this column: William Pesek in Tokyo at wpesek@bloomberg.net

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End-of-Life Warning at $618,616: Was It Worth It?

March 4, 2010

By Amanda Bennett March 4 (Bloomberg) — It was some time after midnight on Dec. 8, 2007, when Dr. Eric Goren told me my husband might not live till morning. The kidney cancer that had metastasized almost six years earlier was growing in his lungs. He was in intensive care at the Hospital of the University of Pennsylvania in Philadelphia, and had begun to spit blood. Terence Bryan Foley, 67 years old, my husband of 20 years, father of our two teenagers, a Chinese historian who earned his Ph.D. in his 60s, a man who played more than 15 musical instruments and spoke six languages, a San Francisco cable car conductor and sports photographer, an expert on dairy cattle and swine nutrition, film noir and Dixieland jazz, was confused. He knew his name, but not the year. He wanted a Coke. Should Terence begin to hemorrhage, the doctor asked, what should he do? This was our third end-of-life warning in seven years. We fought off the others. Perhaps we could dodge this one too. Dr. Keith Flaherty, Terence’s oncologist, and I both believed that a new medicine he had just begun to take would buy him more time. Keep him alive if you can, I said. Let’s see what the drug, Pfizer Inc. ’s Sutent, can do. Terence died six days later, on Friday, Dec. 14, 2007. What I couldn’t know then was that the thinking behind my request — along with hundreds of decisions we made over seven years — was a window on the impossible calculus at the core of the U.S. health-care debate. Expensive Last Chances Terence and I didn’t have to think about money, allocation of medical resources, the struggles of more than 46 million uninsured Americans, or the impact on corporate bottom lines. Backed by medical insurance provided by my employers, we were able to fight his cancer with a series of expensive last chances like the one I asked for that night. How expensive? The bills totaled $618,616, almost two- thirds of it for the final 24 months, much of it for treatments that no one can say for sure helped extend his life. In just the last four days of trying to keep him alive — two in intensive care, two in a cancer ward — our insurance was charged $43,711 for doctors, medicines, monitors, X-rays and scans. Two years later, the only thing I know for certain that money bought was confirmation that he was dying. Some of the drugs probably did Terence no good at all. At least one helped fewer than 10 percent of all those who took it. Pharmaceutical companies and insurers will have to sort out the economics of treatments that end up working for only a small subset. Should everyone have the right to try them? Terence and I answered yes. Each drug potentially added life. Yet that too led me to a question I can’t answer. When is it time to quit? Science, Emotion, Costs Congress didn’t touch the issue in last year’s attempt to pass a health-care bill . The mere hint of somehow limiting the ability to choose care as aggressively as Terence and I did created a whirlwind of accusations that the ill, aged and infirm would be forced before government “death panels.” As the debate heated up, I remembered the fat sheaf of insurance statements that arrived after Terence’s death. Our children, Terry, 21, and Georgia, 15, assented to my idea of gathering every record to examine what they would show about end-of-life care, its science, emotions and costs. I knew Terence would have approved. Along with my colleague Charles Babcock, I spent months poring over some 4,750 pages of documents collected from six hospitals, four insurers, Medicare, three oncologists, and a surgeon. Those papers tell the story of a system filled with people doing their best. And they raise complex questions about a health-care system that consumes 17 percent of the economy. Days to Decipher As I leafed through the stack of documents, it was easy to see why 31 percent of the money spent on health care goes to paperwork and administration, according to research published in 2003 by the New England Journal of Medicine. That number has either stayed the same or grown, said Dr. Steffie Woolhandler , a professor at Harvard Medical School and a co-author of the study cited by the journal. Some bills took days to decipher. What did “opd patins t” or “bal xfr ded” mean? How could I tell if the dose charged was the same as the dose prescribed? The documents revealed an economic system in which the sellers don’t set and the buyers don’t know the prices. The University of Pennsylvania hospital charged more than 12 times what Medicare at the time reimbursed for a chest scan. One insurer paid a hospital for 80 percent of the $3,232 price of a scan, while another covered 24 percent. Insurance companies negotiated their own rates, and neither my employers nor I paid the difference between the sticker and discounted prices. ‘It’s Completely Insane’ In this economic system, prices of goods and services bear little relation to the demand for them or their cost to make — or, as it turns out, the good or harm they do. “No other nation would allow a health system to be run the way we do it. It’s completely insane,” said Uwe E. Reinhardt , a political economy professor at Princeton University, who has advised Congress, the Veteran’s Administration and other agencies on health-care economics. Taking it all into account, the data showed we had made a bargain that hardly any economist looking solely at the numbers would say made sense. Why did we do it? I was one big reason. Not me alone, of course. The medical system has a strong bias toward action. My husband, too, was unusual, Flaherty said, in his passionate willingness to endure discomfort for a chance to see his daughter grow from a child to a young woman, and his son graduate from high school. Pricing Hope After Terence died, Flaherty drew me a picture of a bell curve, showing the range of survival times for kidney cancer sufferers. Terence was way off in the tail on the right-hand side, an indication he had indeed beaten the odds. An explosion of research had made it possible to extend lives for years — enough to keep our quest from having been total madness. Terence used to tell a story, almost certainly apocryphal, about his Uncle Bob. Climbing aboard a landing craft before the invasion of Normandy, so the story went, Bob’s sergeant told the men that by the end of the day, nine out of 10 would be dead. Said Bob, on hearing that news: “Each one of us looked around and felt so sorry for those other nine poor sonsabitches.” For me, it was about pushing the bell curve. Knowing that if there was something to be done, we couldn’t not do it. Believing beyond logic that we were going to escape the fate of those other poor sonsabitches. It is very hard to put a price on that kind of hope. The Kidney Shadow We found the cancer by accident, on Sunday, Nov. 5, 2000, in Portland, Oregon. Our son Terry had had a dozen friends over for his 12th birthday. I was making pancakes and shipping the boys home. Terence had been having stomach cramps for weeks. Suddenly he was lying on the bed, doubled over in pain. Our family doctor ordered him to the emergency room. We were immediately triaged through. Not a good sign, I thought. The kids sat on the waiting room floor spreading Barbies and X-Men around them, while Terence writhed in a curtained alcove. When he returned from a scan, the doctor said, almost as an aside: There’s a shadow on his kidney. When he’s feeling better, you’d probably better take a look at it. We were both annoyed. Why would we even think about a shadow on his kidney? His kidney wasn’t the problem. He was in such pain he could barely breathe. ‘We Got It’ The cause turned out to be a violent ulcerative colitis. The damaged colon was removed on Dec. 13. The surgery left him so weak that he spent three weeks, including Christmas morning, immobile in a chair. Colleagues packed meals. My sister wrapped presents. My boss sent her husband to put up our lights. In pity, I got Terence the cat he had long wanted, an orange kitten howling in a box under the tree. And the shadow? We were so grateful he was out of pain that we would have ignored it had someone at the hospital not called to urge us to address it. Within a month, Terence was in surgery, and Dr. Craig Turner had taken out the diseased kidney. Emerging from the five-hour operation on Jan. 18, Turner confirmed the worst: He thought the shadow was cancer. A week later, when Terence was well enough to walk into the doctor’s office, Turner was reassuring. “We got it all,” he said. Terence was visibly moved. “Thank you for saving my life,” he said. ‘We Were Lucky’ Kidney cancer is uncommon, accounting for less than 4 percent of all cancers, or about 50,000 new cases in the U.S. last year, according to the Kidney Cancer Association . Terence was typical: an older man, overweight and an ex-smoker. The disease is symptomless for a long time, so most kidney cancers are discovered accidentally, or too late. We were lucky. The first tool for fighting it is usually the one used since medieval times: the knife, or its technological equivalent. If a tumor is removed early enough, before it flings microscopic cells into the bloodstream that can implant in other organs, surgery is close to a cure. The statistics looked good. By the traditional method of staging — a 7 centimeter tumor with no sign of having spread — Terence had an 85 percent chance of surviving five years. The bills from Regence Blue Cross & Blue Shield of Oregon show the operation was relatively inexpensive, too, just over $25,000, or only about 4 percent of the total charged to keep Terence alive. Insurance paid a discounted $14,084. Terence and I paid $209.87. The lab soon cast a chill on our optimism. Only 50 Cases Terence had collecting duct cancer, the rarest and most aggressive form, named for the part of the kidney where it is thought to originate, according to the pathology report. If that was correct, Terence had almost no chance of making it to the end of the year. In every study I could find, almost everyone with collecting duct cancer died in months, sometimes weeks. Unlike others, most kidney cancers don’t respond well to chemotherapy. There was no accepted treatment after surgery. What’s more, there was almost nothing known about collecting duct cancer. In all the medical literature at that time, Turner and I could find only 50 cases documented worldwide, and nothing had proved effective in halting it. “Watchful waiting” was the recommended path. Waiting for him to die was what we feared. He didn’t die. He got better. We didn’t know why. We tried not to think about it. ‘Too Much Stuff’ By the spring of 2002, we had moved to Lexington, Kentucky, where I was the editor of the newspaper and Terence was creating an Asia Center at the University of Kentucky. He began moving Chinese and Japanese history books to his office. On Saturdays we drove through the bluegrass to take seven-year-old Georgia to riding lessons. We reluctantly let 13-year-old Terry crowd-surf at his first rock concert. Then, on May 6, 2002, I was at work when Terry called, panic in his voice. “Mom, come home. Dad is very sick.” His father was in bed, his face flaming with fever, shaking with chills under a pile of blankets. He could barely speak. “The cancer is in my lungs,” he said. “I’ve got six to nine months left.” A scan had spotted the cancer’s spread. Not wanting to worry us, Terence had secretly begun taking Interleukin-2. If he recovered, he figured, we would never know how close he came; if he died, he would have spared us months of anguish. Suddenly his actions over the last several weeks made sense. He had been giving away musical instruments and pieces of art. “I have too much stuff,” he had told me, a bizarrely improbable statement coming from him. Bow Ties What he didn’t reckon on was that the drug would make him violently ill. But it was the only possible therapy at that time. Injections of the protein — at $735 a dose — were intended to stimulate the immune response to help fight off the cancer’s invasion. The overall response rate was about 10 percent. For most, it did nothing. That evening, for the one and only time, I felt pure terror. I spent the night awake in our dark living room. A few days later I visited a therapist. “I can’t survive without him,” I said. “What does he say when you feel this way?” she asked. “He says I can handle anything.” “You’ll need to say that to yourself.” On a rainy Monday last September, I visited Terence’s oncologist in Lexington. Dr. Scott Pierce remembered his patient, his grey fedora and bow ties, and his personality. The Long Odds “The first thing he said was, ‘Doc, do you have any female patients who have recently died? I need to find a widower so my wife can meet her next husband,’” Pierce recalled. Terence had learned he was going to die, and the first thing he thought was to look after me. Knowing the long odds, Pierce told me he had prescribed Interleukin-2 simply because it was all there was. Terence stopped taking it after just a few weeks, unable to stand the side effects. I shook off my fear and plunged into the Internet. If there was something out there that could save him, I was going to find it. One colleague had been snatched from dying of AIDS by a chance introduction to a doctor who prescribed an experimental antiviral cocktail. Another had beaten leukemia with a cutting- edge bone marrow transplant. We could defeat this, too. I downloaded papers, presentations to the Kidney Cancer Association, abstracts from the National Library of Medicine . I called researchers and oncologists, pathologists and fellow journalists. When the research became overwhelming, I hired a retired nurse to help. My boss’s wife, a nurse herself, began her own information quest. I became part of an online community. After I messaged one couple about a clinical trial in Texas, they offered us their spare bedroom. Terence’s Dream Earlier this year, I called “LMODRNGRRL,” a frequent cancer-forum poster from those years. A furniture dealer named Laura Lear, she told me she had left her business in Los Angeles to help her boyfriend in New York. Robert Cowan, also a furniture dealer, had collecting duct cancer. Like me, it was she who drove the search for information. “I spent all my time online,” she said. She firmly believes the drug they settled on — Novartis AG ’s Gleevec, for which insurance paid $3,000 a month — extended his life, although it was never approved for use on kidney cancer. He died in September 2003 at 43, almost two years after his diagnosis. Throughout the spring and summer of 2002, Georgia, then 8, rode her bicycle up and down the shaded streets of South Ashland Avenue. Thirteen-year-old Terry and his friends Shannon, Hughes and Tanner came in last at their first battle of the bands. Terence sounded optimistic. “It’s my dream,” he said. “Some day we’re going to gig together.” Visiting Pompeii The truth was we were both shaken at the dire prognosis. “What would you regret dying without having seen?” I asked. He answered without hesitation: “Pompeii.” So we pulled Terry from his 8th grade class, Georgia out of 2nd, and flew off to Italy to see the excavated remains of the city once buried under volcanic ash. We walked the cobbled streets, poked into frescoed houses, taverns and baths, and took an eerie comfort from the 2,000-year-old shapes of families huddled together, trying to ward off disaster. By then our research had led us to the Cleveland Clinic, where Dr. Ronald Bukowski has specialized in kidney cancer for more than 20 years. At our first meeting, in August 2002, Terence explained that he had the rare collecting duct cancer. A Clinical Trial “No you don’t,” Bukowski said. We were confused. How did he know? “You’re sitting here,” he said. “If you had collecting duct, you would be dead.” Bukowski argued that the disease was growing so slowly that we should simply watch and wait. We did, until December 2005, when a scan showed the cancer in his lungs had begun to grow. By this time, drugs designed to attack a tumor’s blood supply were appearing to slow the growth of a wide range of cancers. Bukowski recommended we enter a clinical trial, which at that time was pretty much the only way to get these targeted therapies. He referred us to Flaherty in Philadelphia, where we had moved in June 2003 when I changed jobs. The drugs Flaherty was testing — Avastin and Nexavar –had showed promise individually. The trial would find out how they worked together. Terence signed papers agreeing to more or less standard terms: The manufacturers, Genentech Inc. and Bayer AG , would pay for the drugs; we, or our insurers, would cover all other costs. Cancer in Retreat In March 2006, he took his first intravenous dose of Avastin, an hour-long process, and swallowed his first Nexavar. The side effects were hard. There were rashes, sometimes debilitating stomach pains. But he continued teaching, picking up the kids at school, studying and writing. He worked on his book of Chinese poetry. He decided to learn to play the violin and to read and write Arabic. Every two weeks he went for an Avastin drip, and every month for a chest scan. Every month we waited for the results. At first the cancer didn’t budge. Then it began to retreat. I learned that over the years of Terence’s battle with cancer, some insurers drove harder bargains than others. In December 2006, for example, UnitedHealthcare, a unit of UnitedHealth Group Inc. , paid $2,586 to the University of Pennsylvania hospital for a chest scan; in March 2007, after I switched employers, WellPoint Inc. ’s Empire Blue Cross & Blue Shield paid $776 for the same $3,232 bill. ‘Any Soldier’ The entire medical bill for seven years, in fact, was steeply discounted. The $618,616 became $254,176 when the insurers paid their share and imposed their discounts. Of that, Terence and I were responsible for $9,468 — less than 4 percent. During the trial, Terence packed boxes for the troops in battle, loading them in our kitchen with deodorant, Wet Wipes, Mars Bars, Kool-Aid, beef jerky, batteries and magazines. A veteran of Naval intelligence and the Air Force reserves, he walked almost every day to the post office with a box addressed to “Any Soldier.” Behind the counter, the smiling lady with the long red hair extensions became his friend. Every so often a soldier in Iraq or Afghanistan would drop him a thank-you note. Life went on. Then, in August 2007, from half a world away, I heard the cancer return. I was working in China when he coughed during one of our phone calls. By the time I got home he knew it was because of the growth of one of the lung’s cancerous spots. $27,360 a Dose By now, more than six years since we first saw the shadow, I was used to the scares. Avastin’s side effects — fatigue, stomach ailments, rashes — had been getting him down, and the doctor had agreed back in May to let him stop treatments. So we’ll go back on the Avastin, I thought, or cut out or laser out the growth, add new treatments and go on. At a retirement party a few days later, my heart ached for my dear friend, whose breast cancer had returned. What were our lives going to be like without her? How were we going to comfort her husband and daughter? Terence coughed through the dinner. The bills and records document our renewed fight as summer in Philadelphia turned to autumn. Terence resumed Avastin. Because he wasn’t in a clinical trial, our insurance company was billed: $27,360 a dose, for four treatments, more than the cost of the surgery to remove his kidney in 2000. An Unacknowledged Battle He coughed almost continuously. His weight plunged. He needed help on the stairs. He began to use a cane. When his friend Woody came to visit, he couldn’t muster the breath to blow his cornet. He coughed and coughed and coughed. In the last week of October, he called me at work. “I can’t pick Georgia up at school,” he said. “I can’t get out of the chair.” On Halloween, his Dracula costume stayed in the basement. We put the candy on the doorstep. On Nov. 8, we saw a specialist, Dr. Ali Musani. Unable to stand or sit unassisted, Terence lay on the floor and refused to get up. Alarmed, Musani admitted him to the hospital. He was there for four days, during a quiet, unacknowledged battle. On one side were Flaherty and I, believing this to be a temporary setback. On the other were doctors and nurses preparing their patient for the end. On Nov. 10, before discharging him, a doctor propped one of Terence’s scans on a light board and showed us a blizzard of white spots, thousands of tumors covering his lungs. Avastin wasn’t stopping it. Terence Was Game Flaherty and I weren’t going to give up. Sutent, another targeted therapy, had been approved the year before. It worked as Avastin did, by stopping cancer’s ability to build extra blood vessels to feed its growth, but in a different way. One $200 pill a day. A shot at more life. Sutent might have even more serious side effects — rashes, fatigue, stomach distress, strokes — but Terence was game. He began taking it on Nov. 15. At home, he drew a line down the middle of a piece of paper. On one side he wrote things to throw away. On the other, things to keep. “Stop that!” I snapped. “You aren’t going to die.” I prepared for what I expected would be a new phase of our life. I found protein drinks online and protein bars in a bodybuilding shop. I got forms for a handicapped license plate, and looked into outfitting our row house with a stair lift. 210 Calories He was no longer able to get in and out of bed alone, so I hired a health aide. Whatever he craved, I bought. I wrote down everything he ate. Cold grapefruit slices. Chicken noodle soup. Clam chowder. I counted the calories he consumed one day: 210. On Friday, Dec. 7, just as the aide was packing to leave, Terence looked up, startled, as the corners of his mouth foamed bright red with blood. It was a struggle to get him down our narrow stairs to the ambulance. In the emergency room it was clear something was seriously wrong. “What’s your name?” asked the ER doctor. Terence responded correctly. “What’s the date?” Terence gave the doctor what the kids and I recognized as “Daddy’s ‘Just how dumb are you?’ look.” But he couldn’t answer. “Who’s the president of the United States?” That triggered something. “That moron Bush,” he said. Terence was admitted that night to a ward where Eric Goren was doing his last intensive care overnight shift of a three- year residency. In a small break room, alongside vending machines selling soft drinks and chips, Goren told me that bleeding from the lungs might suddenly become uncontrollable. If that happened, what should he and his team do? No Heroic Measures I wanted to see whether Flaherty still thought Sutent could make a difference. I couldn’t reach him. Goren and I settled on what the hospital called Code-A. Do everything possible to prevent a major bleed or anything life-threatening. Don’t take heroic measures if death seems inevitable. I called the children in. My sister picked up Georgia at a sleepover, and Terry’s friends Suzie, Ben and Will brought him from a party. My decision, so hard on Saturday, was easy by Monday. The scans now were showing signs of cancer in his brain, surrounded by a cascade of hundreds of tiny strokes. I had Terence’s signed living will, but I didn’t need it. I knew what this man who lived for books, music and ideas would want. Flaherty arrived. He looked shaken. “I didn’t expect this,” he said. Reading Their Goodbyes That afternoon I signed the papers transferring Terence to hospice. The next day, Tuesday, the hospital staff took away the machines and the monitors. The oncologists and radiologists and lab technicians disappeared. Another group of people — hospice nurses, social workers, chaplains and counselors for me and the children — began to arrive one by one, as the focus shifted from treating Terence to easing our transition. For the next three days, with Terence in the same hospital bed, we spent $14,022 on the pain medications ativan and dialudid, and on monitoring for him and counseling for a different kind of pain management for the children and me. The cost was less than a third of the previous four days’ $43,711. Terence drifted into a coma on Tuesday. I e-mailed his friends and read their goodbyes aloud, hoping he could hear and understand. I slept in a chair. At about 2:30 a.m. Friday, a noise in the hall startled me. I awoke just in time to hold his hand as he died. They gave me back his wedding ring the next day. Looking back, memories of my zeal to treat are tinged with sadness. Since I didn’t believe my husband was going to die, I never let us have the chance to say goodbye. Black-Bordered Notes Ten days later, the kids hung Daddy’s Christmas stocking alongside our three. I mailed the cards he had addressed months earlier, slipping in a black-bordered note. I threw away the protein bars, gave the energy drinks to a shelter and flushed an opened bottle of Sutent down the drain. Would I do it all again? Absolutely. I couldn’t not do it again. But I think had he known the costs, Terence would have fought the insurers spending enough, at roughly $200,000, to vaccinate almost a quarter-million children in developing countries. That’s how he would have thought about it. Late last year, I waded through a snowstorm to Keith Flaherty’s office in Boston, where he had moved to a new job that would let him intensify his work on targeted therapy. Did we help Terence? Or harm him? There’s a possibility, he said, that the treatment actually made the cancer worse, causing it to rage out of control at the end. Or, as another doctor suggested in passing at the time, that the strokes were a side effect of the Sutent, and not the cancer. Another Bell Curve Flaherty and I looked at the numbers. The average patient in his trial got 14 months of extra life. Without any treatment, Flaherty estimates that for someone at Terence’s stage of the disease it was three months. Terence got 17 months — still within the realm of chance, but way, way up on the bell curve. There’s another bell curve that starts about where Terence’s left off. It charts the survival times for patients treated not just with Sutent, Avastin and Nexavar but also Novartis’s Afinitor and GlaxoSmithKline Plc’s Votrient, made available within the past three years. Doctors and patients now are doing what we dreamed of, staggering one drug after another and buying years more of life. Slides on the results of the clinical trial, presented at the 2008 meeting of the American Society of Clinical Oncology, showed that Avastin and Nexavar worked well on a wide variety of patients. Only Flaherty and I know that the solitary tick mark at 17 months was Terence. Only I know that those 17 months included an afternoon looking down at the Mediterranean with Georgia from a sunny balcony in Southern Spain. Moving Terry into his college dorm. Celebrating our 20th anniversary with a carriage ride through Philadelphia’s cobbled streets. A final Thanksgiving game of charades with cousins Margo and Glenn. And one last chance for Terence to pave the way for all those other poor sonsabitches. —-With assistance from Charles R. Babcock in Washington. Editors: Robert L. Simison , Anne Reifenberg To contact the reporter responsible for this story: Amanda Bennett in New York at Abennett6@bloomberg.net

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Bristol-Myers Names Andreotti CEO to Replace Cornelius Upon May Retirement

March 3, 2010

By Shannon Pettypiece March 3 (Bloomberg) — Bristol-Myers Squibb Co. ’s newly named Chief Executive Officer Lamberto Andreotti says he is confident he can overcome the loss of $11 billion in revenue to generic competition by 2016. Now he must convince investors. Andreotti, 59, will replace James Cornelius , 66, the CEO since 2007, when Cornelius retires May 4, Bristol-Myers said yesterday in a statement. Andreotti will meet with investors tomorrow in New York, where he said he will lay out his plan to boost Bristol-Myers earnings after the loss of patent protection on its blood-thinner Plavix in 2012. The son of a former Italian prime minister, Andreotti has spent 12 years at Bristol-Myers and last year was named president and chief operating officer. To offset the pending patent losses, Cornelius made nine acquisitions and licensing deals to get access to new medicines and planned to cut $2.5 billion in spending by 2012. Andreotti said he will increase the number of purchases and reshape the company at a quicker pace. “I am well aware of the challenges in front of us,” Andreotti said yesterday in a conference call with reporters. “Bristol, in my opinion, is well positioned to overcome these challenges.” Analysts and investors have been unconvinced that the actions taken by Cornelius were aggressive enough. Of the 22 analysts who follow the company, five recommend investors buy the stock. Bristol-Myers shares have lost 2.1 percent of their value this year while the Standard & Poor’s 500 Health Care Index has gained 1.8 percent. Bristol-Myers rose 33 cents, or 1.4 percent, to $24.72 in New York Stock Exchange composite trading yesterday. ‘Very Painful’ “The Plavix patent expiration is going to be very painful, and I think investors are underestimating this,” said Vishal Manchanda of Mehta Partners LLC in New York, who has a “sell” rating on Bristol-Myers, in a telephone interview last week. “I do expect a dip in the share price; that is almost certain.” Andreotti was long seen as a top contender for the CEO’s position and his selection isn’t a surprise to investors, said Les Funtleyder , a Miller Tabak & Co. analyst in New York, in a telephone interview. Now, Andreotti must deliver on the company’s pipeline of experimental medicines, Funtleyder said. “Barring the CEO’s ability to go in and create new drugs, they’re really at the mercy of their research and development departments,” he said yesterday in a telephone interview. Drugs with $136 billion in annual sales industrywide will face generic competition within five years, according to IMS Health Inc., a research company in Norwalk, Connecticut. No drugmaker faces a bigger threat from generics than Bristol- Myers, which will lose products accounting for 60 percent of its 2009 earnings, according to Cowen & Co. in Boston. Plavix, Avapro Copies of Plavix and the blood-pressure medicine Avapro are set to flood the market in 2012, erasing $7.4 billion in sales , said Seamus Fernandez , an analyst in Boston for Leerink Swann & Co. Sales of the antipsychotic Abilify will start to tumble in 2014, eliminating about $3 billion in revenue by 2016. Even if all the drugs being developed at Bristol-Myers make it to market as planned, sales in 2016 will fall about $3.9 billion lower than in 2011, Fernandez said. Andreotti said he plans to make more acquisitions in the near term to help address those losses, and has $10 billion in cash to do so with. Since 2007, when Cornelius became CEO, the company has made nine licensing agreements and acquisitions . Only one of those deals, though, will produced a product scheduled to come to market before 2016. That’s the skin cancer treatment ipilimumab, which it got from its $2.4 billion acquisition of Medarex Inc. last year, Fernandez said in a research report. $475 Million in Sales If approved by regulators, ipilimumab may achieve $475 million in annual sales by 2016, Fernandez said. Bristol-Myers has six medicines in the final stages of testing and is studying 11 marketed products for additional indications, according to the company’s Web site. Andreotti, the son of former Italian prime minister Giulio Andreotti , started at Bristol-Myers as general manager of Italian operations and head of the company’s European cancer business. Cornelius will remain chairman after stepping down from the CEO post. Cornelius was previously chairman and interim chief executive officer of Guidant Corp., a medical device maker. He took the helm in April 2007 after his predecessor, Peter Dolan , was dismissed over his failed attempt to prevent generic Plavix competition. ‘An Operator’ “What Jim brought was leadership,” said Tony Butler , an analyst with Barclays Capital in New York, referring to Cornelius. “Bristol, at the time, needed leadership. Now Bristol needs to execute. Lamberto, a little bit more, is an operator,” he said in a telephone interview. Cornelius’ tenure can’t be judged until the fate of Bristol- Myers’s drugs in development is known, Miller-Tabak’s Funtleyder said. “Right now, we have to give him an incomplete” he said. “You won’t know whether his strategy pays off until post- Plavix, probably 2013, 2014, and there’ll be a lot of Monday- morning quarterbacking over whether he made the right moves.” To contact the reporter on this story: Shannon Pettypiece in New York at spettypiece@bloomberg.net .

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Aspirin Doesn’t Prevent Heart Attacks in Those With No Symptoms

March 2, 2010

By Nicole Ostrow March 2 (Bloomberg) — Aspirin doesn’t prevent heart attacks or strokes in people who have a high risk of heart disease yet show no symptoms, a study in Scotland found. Half of the 3,350 people in the study were given low-dose aspirin after a screening test showed they had a higher-than- average risk for heart disease. They had a similar number of heart attacks and strokes to the other half of participants taking a placebo, researchers reported today in the Journal of the American Medical Association . The study is the first to look at an apparently healthy population, screen them for their heart disease risk using a test that detects artery blockages in their legs and then try to reduce that with aspirin, lead author F. Gerald Fowkes said. Aspirin has been shown to lower heart attacks in people who have symptoms of heart disease, and more studies are needed to find a way to prevent cardiovascular problems in people who have a high risk and no symptoms, he said. “One of the problems we have with coronary heart disease and stroke is we’re still not that good at preventing it in people who are supposedly healthy,” said Fowkes, a professor of epidemiology at the University of Edinburgh, in a telephone interview today. “We’ve not cracked that. This was an opportunity to pick people who are at increased risk and try to target a new population to try to prevent getting a heart attack or stroke.” Alternative Drugs Research is needed to see if Pfizer Inc. ’s Lipitor and AstraZeneca Plc ’s Crestor, two cholesterol-lowering drugs called statins, work in these patients to reduce their risk of heart attack or stroke, Fowkes said. Another approach is to test whether Bristol Myers Squibb Co. ’s Plavix, an anti-clotting drug, works in this group. More than 81 million people in the U.S. have one or more forms of cardiovascular disease, including coronary artery disease, high blood pressure and chest pain, according to the American Heart Association. It is the leading cause of death in the U.S. Aspirin helps prevent clots from forming in the arteries and has been shown to be effective in people who have symptoms of heart disease, said Jeffrey Berger , an assistant professor of medicine and surgery at New York University, who wrote an accompanying editorial in the journal. Right Population “I still think aspirin is a very effective drug,” Berger said in a telephone interview today. “We just have to find the right population to do it in for prevention of first heart attack or stroke.” Fowkes said he isn’t sure why aspirin didn’t appear to work in the study. It may be that the trial wasn’t large enough to detect a difference or people didn’t continue taking their aspirin, he said. The study included 3,350 people who had a low score on a test called the Ankle Brachial Index . The test measures blood pressure at the ankle compared with pressure in the arm. It is used to determine if someone has peripheral artery disease, or blocked arteries in their legs and other parts of the body, which increases the risk of heart attack and stroke. Eight Years Those in the study were randomly assigned to receive either a low-dose, 100 milligram aspirin tablet or a placebo. They were followed for about eight years. The researchers found that 181 people, or 10.8 percent, of the aspirin group and 176 people, or 10.5 percent, of the placebo group had a heart attack or stroke. Today’s study, was sponsored in part by the British Heart Foundation and Bayer AG, maker of a low-dose aspirin for cardiac health. Future trials should help identify patients who have increased levels of blood platelets, Berger said. Doctors know they have a higher risk for heart disease. Such research may determine if aspirin therapy decreases heart attacks and strokes by reducing those platelet levels, he said. For Related News and Information: To contact the reporter on this story: Nicole Ostrow in New York at nostrow1@bloomberg.net .

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Mason Tvert: Businesses Should Stay on Marijuana’s Good Side

February 5, 2010

A recent brouhaha between Starbucks Coffee and marijuana legalization advocates raises an important question for the broader business community: Can major national companies be successful absent the patronage of marijuana consumers and others who support marijuana policy reform? Not too long ago, it was absolutely necessary for businesses to maintain an appearance of opposition to marijuana use and legalization. But the times they are a-changin’, and it is beginning to seem like many major companies are striving to maintain an appearance of NOT opposing marijuana use and legalization. Late last month, Safer Alternative For Enjoyable Recreation ( SAFER ) — the organization I run — called for a nationwide boycott of Starbucks Coffee after it and other companies appeared on the “sponsor” page of the Colorado Drug Investigators Association (CDIA), a shady group of law enforcement officials lobbying to wipe out the state’s voter-approved medical marijuana system and keep marijuana as illegal as possible. With a board of directors composed almost exclusively of narcotics agents, along with a website and merchandise decorated in a skull motif with images of the grim reaper, military helicopters, and the slogan “Death on Drugs,” it’s safe to say these guys are not so much concerned with public safety as they are with fighting — and maintaining — an endless war against marijuana and other drugs. After all, it provides them with job security, and marijuana enforcement is their bread and butter. Word of the boycott spread quickly across the web, and with a boost from some traditional media coverage (including some in Starbucks’s hometown of Seattle) resulted in thousands of Americans contacting CEO Howard Schultz to let him know they would not be giving their business to his company until it did some explaining. Not long after, Starbucks issued a formal statement in which it distanced itself from the CDIA and assured the Starbucks faithful it does not support such anti-marijuana crusaders. Another business listed as a “sponsor” on CDIA’s website was The North Face , one of the leading producers of hiking and mountain sports equipment and apparel. After receiving messages from people swearing off their products, the company took action to ensure everyone knows they are not actually a sponsor of the CDIA and do not support the group’s mission. In light of all the bad publicity and these major companies disputing any tie to the CDIA, the organization removed its Web site entirely . Apparently they do not have quite the level of support from the business community that they were suggesting. As the Seattle Weekly reported , there’s more to this story than meets the eye: Starbucks was just one of many local and national companies whose logo was on CDIA’s website. (Also included: The North Face and Enterprise-Rent-a-Car.)… But what Starbucks, or any of those other brands, did for CDIA isn’t really clear. According to Starbucks HQ, no money was involved. So most likely…the “sponsorship” CDIA bragged about probably came down to a couple free lattes handed out at one or two stores. Either way, it’s nothing but a minor brew-ha-ha. But more evidence that we’ve now entered an (amazing) alternate dimension, where speaking out against pot actually gets you more bad PR than speaking out for it. In the past, businesses faced with anti-marijuana publicity would either remain silent or speak out to assure the public they are opposed to marijuana use and its legalization. Yet the major companies mentioned above did not stay silent; instead, they took action to ensure the public knows they are NOT opposed. In some sense, this was the case with Subway and several other companies that opted to stick with Michael Phelps after his bong hit heard ’round the world. In fact, Subway even seemed to work the situation into its marketing , incorporating the tag-line, “Be yourself,” into the Phelps commercials and launching a new Web site — “SubwayFreshBuzz.com”. As for the one business that dropped him, the Kellogg Company , it found itself on the wrong end of a highly publicized nationwide boycott that drew more customers’ attention than its tainted peanut butter recall. Indeed, it seems like more and more big businesses are beginning to realize the importance of staying on the good side of those who support marijuana reform. And rightly so. The latest polls are finding that a majority of Americans support treating marijuana like alcohol, and support is even greater on both highly populated U.S. coasts. Moreover, this particular community happens to be one of the most vocal out there. When President Barack Obama solicited questions from the public for an on-line forum , the three most popular among the 3.5 million votes were related to marijuana legalization. And just last week, marijuana-related questions topped the list of those asked of the President for his on-line “CitizenTube” address. Nevertheless, many companies are still towing the anti-marijuana line. YouTube is under fire for censoring those marijuana questions from the President’s address, and Chase Bank just sparked the ire of drug policy reform advocates when it completely cheated a national student-based organization out of a grant it legitimately won in the company’s on-line grant contest. Of course there are also the professional sports leagues and Olympic organizations that punish players for using marijuana (including last year’s National League Cy Young Award Winner , last year’s Super Bowl MVP , and of course the greatest Olympian in history ). But the fight rages on, and those vocal marijuana reform supporters do not seem to be tiring. Students for Sensible Drug Policy ( SSDP ) has called for a boycott of Chase Bank that has already convinced thousands of people to swear off using it, and organizations like the Marijuana Policy Project ( MPP ) are pushing hard to ensure the blogosphere is aware of YouTube’s censorship. Sooner or later, these companies will come to realize that they must respect the fact that marijuana consumers and supporters of reform are everywhere . And if they expect to keep their business, maintain their market-shares, and ensure healthy bottom lines, they must end their anti-marijuana madness. After all, it’s not just those prime-time athletes who enjoy marijuana, but in many cases the fans… and the bank account holders… and the on-line video watchers… and the mountain climbers… and, of course, the coffee drinkers.

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Pfizer Mystery Drug for Alzheimer’s Awaits Validation of Russian Promise

February 2, 2010

By Michelle Fay Cortez Feb. 2 (Bloomberg) — Doctors may learn next month that Dimebon, a 27-year-old hay fever treatment and one of the most mysterious compounds yet tried to fight dementia, is poised to become their newest and perhaps best weapon against Alzheimer’s. Medivation Inc. , the start-up that persuaded Pfizer Inc. , the world’s biggest drugmaker, to help develop Dimebon, may be ready to release new research data during the first week of March, said Bengt Winblad , head of Alzheimer’s research at the Karolinska Institute in Stockholm and a leader of the European trials for the product. The study may confirm a 2008 finding in Russia that patients functioned better and thought more clearly after swallowing Dimebon tablets three times a day. The data augur a make-or-break moment for San Francisco- based Medivation, which has no products on the market and has recorded losses exceeding $150 million since 2003. Pfizer, which hasn’t brought a new drug to market that generates more than $1 billion a year since the pain pill Lyrica won U.S. clearance in 2004, has pinpointed Alzheimer’s as one of six focuses of research. Doctors say millions of patients may benefit. The 183-patient Russian study, reported in the Lancet in July 2008, “showed the most effective and sustained benefit that we’ve ever seen in Alzheimer’s,” Samuel Gandy , associate director of the Alzheimer’s Disease Research Center at Mount Sinai School of Medicine in New York, said in a telephone interview. “There is nothing that’s currently approved that compares to it and nothing else really in the pipeline that compares to it.” Drug Failures Some patients were better after taking the drug for 18 months than they were at the start of the trial, something never previously seen with the progressive disease. Gandy, who wasn’t involved in the research, said the drug stands to win approval even if the next study “is only half as good as the original.” Few Alzheimer’s candidates beat the odds. There hasn’t been a new drug for the disease since Namenda, from New York-based Forest Laboratories Inc. , was approved in 2003, and almost a dozen drugs in mid- to late-stage testing have failed since then, according to data compiled by Bloomberg. Drugs that looked exciting in early studies have turned into disappointments, while others that appeared less promising ended up successful, said Constantine Lyketsos, chair of psychiatry at Johns Hopkins Bayview Medical Center in Baltimore. “Ultimately with Dimebon, the data will speak,” Lyketsos said. “Even if it was hugely promising and exciting, it would be a little while before it ends up on the market. My patients and families need realistic hope at this point and I’m not sure that’s realistic hope at this point.” Stock Ratings Now valued at $1.13 billion, Medivation may plunge 35 percent in Nasdaq trading if the study fails, said Ian Sanderson , an analyst at Cowen & Co. in Boston. Success may propel the stock to rise 20 percent, he said. Sanderson rates the shares “neutral.” Seven other analysts say investors should buy Medivation and one has a “sell” opinion, according to Bloomberg data. Medivation has risen 80 percent in Nasdaq Stock Market composite trading in the last 12 months as investors anticipate the study results. The shares advanced 1.6 percent yesterday, to $33.82. Pfizer shares rose 29 percent in the past 12 months, and climbed 13 cents, to $18.79, in New York Stock Exchange composite trading. Positive results would usher Dimebon into a $4 billion a year market that may almost triple by 2018, said Matthew Winton, an analyst at Decision Resources Inc. in Waltham, Massachusetts, in a telephone interview. ‘Very Excited’ Analysts said they expect Medivation and New York-based Pfizer to file for regulatory approval of Dimebon in 2011. Results from the 525-patient Connection study could move that date forward, company officials said. “We’re all very excited that we will reproduce exactly what was seen in the other trial,” said Briggs Morrison , senior vice president of Pfizer’s primary-care development group, in a telephone interview. “If that data comes together and in our conversations with regulators they feel that it’s a strong package worthy of filing, we all have a passion to get these important medicines to patients.” In its initial studies, Dimebon was effective in all five areas examined and the improvements lasted longer than the effects seen in separate research on rival therapies. If the results are confirmed, the drug may generate at least $1.6 billion in annual sales by 2015, Sanderson said. The top spot in the market is now held by Pfizer and Tokyo-based Eisai Co. ’s Aricept, which generates $2.5 billion a year. Russian Researchers Medivation acquired Dimebon, which has been used since 1983 to treat hay fever in the former Soviet Union, from a company formed by Sergey Bachurin, a researcher at the Institute of Psychologically Active Compounds, in Chemogolovka, Russia. The drug was first identified as a possible way to protect neurons when the Russian Academy of Science , in Chernogolovka, Russia, started in the early 1990s to screen libraries of compounds for their ability to block a key brain receptor. Belief in the drug was bolstered when researchers found it improved learning in brain-damaged rodents. If Dimebon beats the 70 percent failure rate seen in drug development, the results — and clearances from the U.S. Food and Drug Administration and its European counterparts — may arrive before scientists pinpoint how the product works. What Patients Want Investigators once thought Dimebon combined the activity seen with the two types of drugs already approved for Alzheimer’s disease: medicines such as Pfizer’s Aricept that increase levels of a brain chemical that helps transmit messages between nerves, and drugs such as Forest’s Namenda, that block the absorption of toxic levels of another neurotransmitter. Studies dispelled that hypothesis, and what Dimebon does inside the brain remains unknown. Patients don’t care why a drug works — only if it does. “Many of my patients or their spouses say, ‘If I could at least keep my husband or wife as she is now, I would be very happy,’ ” said Karolinska’s Winblad. “In a way, that’s what you do with this drug. You prolong the time to the decline.” Dimebon is one of five Alzheimer’s medicines that may reach the market in the next decade, Winton said. The drugs, including products from Johnson & Johnson in New Brunswick, New Jersey; Elan Corp. in Dublin; Pfizer; Baxter International Inc. in Deerfield, Illinois; and Eli Lilly & Co. in Indianapolis, may spur an $11 billion market by 2018 as prices and the number of patients climb, Winton said. Approved Drugs Most of the potential Dimebon competitors reduce levels of amyloid plaque , a substance that builds up in the brain of people with Alzheimer’s. The four approved drugs, which ease symptoms for as much as six months, generated $6.3 billion in the 12-months ended Sept. 30, according to IMS Health Inc. , a research company in Norwalk, Connecticut. Scientists have now focused on Dimebon’s effect on mitochondria , so-called power plants that generate energy in cells, with laboratory studies showing it improves cells’ function and helps them withstand stress. “The data is really clear, but it is in cell culture,” Maria Ankarcrona, a Karolinska researcher, said in an interview. “Stressed cells respond more to Dimebon than normal cells.” Alzheimer’s is a progressive disease that starts with mild forgetfulness and eventually robs patients of memories and independence. It afflicts 30 million people worldwide, a number that may exceed 100 million by 2050, according to Alzheimer’s Disease International, an advocacy group based in London. Losing Lipitor Pfizer, with revenue of $48.3 billion in 2008, needs new medications to replace the sales it will lose when its biggest- selling drug, the cholesterol-lowering drug Lipitor, loses patent protection in 2011. The patent on Aricept expires at the end of this year. Pfizer paid Medivation $225 million in September 2008 to help develop Dimebon for Alzheimer’s and Huntington’s disease, and may pay an additional $500 million as the drug proceeds through the regulatory process. Pfizer is covering 60 percent of the development costs in the U.S. and will get a like portion of the profits. The Medivation development program includes five pivotal trials of Dimebon, for use alone and in combination with existing drugs, and for patients with disease ranging from mild to severe. The 183 volunteers in the first such study, in Russia, were given either Dimebon or a placebo for six months, while other anti-dementia drugs weren’t allowed. Additional Research The researchers evaluated the last patient enrolled in the 525-patient Connection study in December and are now starting to analyze the findings, Winblad said. The results should be available by early March, and Medivation and Pfizer may be able to release the findings by then, he said. Pfizer’s Morrison and Medivation CEO David Hung said the data will be released by July. “The Connection study is an important study, but it’s only one of a number of studies,” Hung said. “We have a lot of shots on goal.” To contact the reporter on this story: Michelle Fay Cortez in London at mcortez@bloomberg.net

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Karzai Says Afghanistan May Need Foreign Troops for Another 10 to 15 Years

January 28, 2010

By James Rupert and Thomas Penny Jan. 28 (Bloomberg) — A $500 million plan to entice Taliban fighters to quit the growing insurgency in Afghanistan will form the centerpiece of a conference in London after President Hamid Karzai warned that international troops may be needed in his country for as many as 15 years. More than 60 foreign ministers are meeting top Afghan officials to approve a political strategy backing the U.S.-led troop surge. The ministers will show support for Afghan President Hamid Karzai and resolve to stabilize his country, while countering falling public support for the war in Europe and the U.S. by offering a timeline for troops to come home. “This conference marks the beginning of the transition process, agreeing the conditions under which we can begin district by district, province by province, transferring the responsibility for security from international forces to Afghan forces,” U.K. Prime Minister Gordon Brown said in a speech today opening the one-day meeting. Governments at the conference will pledge about $500 million, German Chancellor Angela Merkel said, to provide jobs, homes and farming help for Taliban fighters who return to civilian life. Alexander Dobrindt, deputy leader of Merkel’s sister party, the Christian Social Union , dubbed the plan a “Taliban cash-for-clunkers” program. Conference attendees will also renew pressure on Karzai to reduce official corruption that has weakened his government. Karzai, in an interview with BBC television, said he’ll present a “new, invigorated” anti-corruption plan. The blueprint will include more deadlines, laws and regulations than previous plans, he said. Sanctions Lifted The reconciliation offer “goes to those who are not part of al-Qaeda or other terrorist networks who have accepted the Afghan constitution,” Karzai said. The United Nations Security Council this week lifted sanctions against five former Taliban officials, in what Afghan UN ambassador Zahir Tanin called “a message for anyone in the Taliban that wants to join the peace process.” The Taliban’s regional commander for southern Afghanistan, Akhtar Mohammad, dismissed the London conference as “nonsense that will do nothing to bring Taliban to the negotiating table.” In a telephone interview from an undisclosed location, Mohammad repeated the guerrillas’ demand that all foreign forces leave Afghanistan. In trying to stabilize the Afghan government before 2011, when the U.S. plans to begin reducing its military forces, governments may be hampered by Karzai’s political weakness. The Afghan leader has failed to get parliament to approve his full Cabinet 12 weeks after being declared the winner of a fraud- tainted election. ‘Loss of Momentum’ The conference, hosted by the British government , will try to reverse what “was essentially a loss of momentum in the whole Afghan project” last year because of distractions around the disputed elections, plus Taliban military gains, said Mark Sedwill , the British ambassador to Afghanistan, who was appointed this week as the top civilian North Atlantic Treaty Organization official in the country. In 2009, 520 NATO troops were killed in the Afghan war, a 76 percent jump over 2008, according to the casualty-monitoring Web site iCasualties.org . NATO is getting 38,500 reinforcements in Afghanistan that will bring its troop strength to almost 150,000 in the ninth year of the war. Foreign Troops Needed Afghanistan may need the support of international forces for as long as 15 years, Karzai told the BBC. For training the Afghan forces, “five to 10 years is enough,” Karzai said. “With regard to sustaining them, the time may be extended to 10 to 15 years.” Since 2003, several Afghan reconciliation plans have collapsed because the government failed to deliver on promises of land, money or jobs for Taliban who quit the war. “This time they have to be sure the money gets through,” said Shada Islam , an analyst at the European Policy Centre , a research institute in Brussels. The new effort has a better chance because it has greater international support, Afghan Finance Minister Omar Zakhilwal said in an interview with Bloomberg Television yesterday. The U.S. backs the plan, its special representative for Afghanistan and Pakistan, Ambassador Richard Holbrooke , told MSNBC this week in an interview. Germany will contribute $70 million, Merkel has said. Mullah Omar A reconciliation program should work at local and provincial levels to woo lower-level Taliban, and should exclude the Taliban leadership including its commander, Mullah Omar , former Afghan Foreign Minister Abdullah Abdullah told Bloomberg Television in an interview yesterday at the World Economic Forum in Davos, Switzerland. Afghanistan is seen as the world’s second-most corrupt country, according to the annual survey by Transparency International , a Berlin-based corruption-monitoring group. Graft has outstripped the country’s violence as the biggest worry for Afghans, 59 percent of whom called it their top concern in a survey released this month by the UN Office on Drugs and Crime. To contact the reporters on this story: James Rupert in New Delhi at jrupert3@bloomberg.net ; Thomas Penny in London at tpenny@bloomberg.net ;

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Taliban Pay-for-Peace Plan to Be Put in Motion at London Afghan Conference

January 27, 2010

By James Rupert Jan. 28 (Bloomberg) — A $500 million plan to entice Taliban fighters to quit the growing insurgency in Afghanistan will be put in motion today by governments at a conference in London. More than 60 foreign ministers will meet top Afghan officials to approve a political strategy backing the U.S.-led troop surge. The ministers will seek to show support for Afghan President Hamid Karzai and resolve to stabilize his country, while countering falling public support for the war in Europe and the U.S. by pledging troops can start coming home by 2011. “The trick in London will be to balance these two conflicting messages,” said Shada Islam , an analyst at the European Policy Centre , a research institute in Brussels. Governments attending the one-day meeting will pledge about $500 million to fund Taliban fighters who return to civilian life, German Chancellor Angela Merkel said Jan 26. The money will go for housing, jobs and agriculture. A senior member of Merkel’s Christian Social Union sister party, CSU General Secretary Alexander Dobrindt, dubbed it a “Taliban cash-for- clunkers” program. Conference attendees also will renew pressure on Karzai to reduce official corruption that has weakened his government. “We have made it clear that we want a transparent Afghan government and that fighting corruption must be a high priority,” Merkel told reporters yesterday after meeting Karzai in Berlin. Sanctions Lifted The reconciliation bid comes as the United Nations Security Council this week lifted sanctions against five former Taliban officials, in what the Afghan UN ambassador, Zahir Tanin , called “a message for anyone in the Taliban that wants to join the peace process.” The Taliban dismissed the London talks as “a waste of time” and repeated demands for a pullout of international forces, Pakistan’s GEO television reported, citing an e-mailed statement. In trying to stabilize the Afghan government before 2011, when the U.S. plans to begin reducing its military force, governments may be hampered by Karzai’s political weakness. The Afghan leader has failed to get parliament to approve his full Cabinet 12 weeks after being declared the winner of a fraud- tainted election. The London meeting will skip some issues, in part because Afghan government departments “still don’t have permanent ministers in all of the jobs,” said Mark Sedwill , the British ambassador to Afghanistan, who was appointed this week as the top civilian North Atlantic Treaty Organization official in the country. ‘Loss of Momentum’ The conference, hosted by the British government , will try to reverse what “was essentially a loss of momentum in the whole Afghan project” last year because of distractions around the disputed elections, plus Taliban military gains, Sedwill told reporters last week. In 2009, 520 NATO troops were killed in the Afghan war, a 76 percent jump over 2008, according to the casualty-monitoring Web site iCasualties.org . Since 2003, several Afghan reconciliation plans have collapsed because the government failed to deliver on promises of land, money or jobs for Taliban who quit the war. “This time they have to be sure the money gets through,” said the European Policy Centre’s Islam. The new effort has a better chance because it has greater international support, Afghan Finance Minister Omar Zakhilwal said in an interview with Bloomberg Television yesterday. U.S. Backing The U.S. backs the plan, its special representative for Afghanistan and Pakistan, Ambassador Richard Holbrooke , told MSNBC this week in an interview. Germany will contribute $70 million, Merkel has said. A reconciliation program should work at local and provincial levels to woo lower-level Taliban, and should exclude the Taliban leadership including its commander, Mullah Omar , former Afghan Foreign Minister Abdullah Abdullah told Bloomberg Television in an interview yesterday at the World Economic Forum in Davos, Switzerland. With governments in Britain, Germany and the U.S. losing support for any long-term commitment of their troops in Afghanistan, today’s conference will try to set “an indicative timeline” for NATO to hand over security control of districts and provinces to Afghan troops and police, Sedwill said. Merkel said yesterday she wants all security operations to be carried out by Afghan forces from 2014. Yet she said that setting any deadline for withdrawing foreign troops would be a “mistake” that would “only encourage the Taliban to carry out more attacks.” Corruption Concern Afghanistan is seen as the world’s second-most corrupt country, according to the annual survey by Transparency International , a Berlin-based corruption-monitoring group. Graft has outstripped the country’s violence as the biggest worry for Afghans, 59 percent of whom called it their top concern in a survey released this month by the UN Office on Drugs and Crime. Corruption has made it harder for Western governments to sell troop increases in Afghanistan to voters at home. NATO is getting 38,500 reinforcements in Afghanistan that will bring its troop strength to almost 150,000 in the ninth year of the war. While conceding that corruption is a problem rooted in “weak institutions” in Afghanistan, Zakhilwal disputed as “flawed” a conclusion by the UN report that Afghans pay annually the equivalent of 23 percent of the country’s gross domestic product in bribes. The Afghan government will detail its new anti-corruption plans at today’s conference, said Zakhilwal. “What we are aiming is not a 100 percent removal of corruption, but significant reduction, which will be possible.” To contact the reporter on this story: James Rupert in New Delhi at jrupert3@bloomberg.net .

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China Executes British Drug Smuggler, Ignoring Brown’s Appeal for Clemency

December 29, 2009

By Ben Richardson Dec. 29 (Bloomberg) — China executed a British national today for smuggling heroin, brushing off pleas from the U.K. government for clemency and protests that the father of five was suffering from a mental illness and unfit to stand trial. “I condemn the execution of Akmal Shaikh in the strongest terms,” U.K. Prime Minister Gordon Brown said in a statement the Foreign Office released after receiving confirmation from China that the sentence had been carried out. “No mental health assessment was undertaken,” he said. Shaikh’s execution is the first of a national from a European Union country in China in 50 years, according to the charity Reprieve , which campaigns for death row prisoners globally. China carried out more executions than the rest of the world put together last year, Amnesty International says. There has been no independent confirmation from China’s government. The state-run Xinhua News Agency, often the first to release information from official stories, said earlier today that the Supreme Court had confirmed the death sentence. China typically carries out executions soon after the court’s go-ahead. The execution was carried out at 10:30 a.m. local time in Urumqi, the capital of China’s westernmost Xinjiang province, Reprieve said, without saying where it got the information. Shaikh’s family carried out a vigil outside the Chinese Embassy in London seeking a reprieve, the charity said on its Web site. The execution followed repeated attempts to have Shaikh examined by a doctor to assess his mental health, Reprieve said. ‘No Evidence’ “China’s refusal to even allow a proper medical evaluation is simply disgusting,” Reprieve director Clive Stafford Smith said. The British government and Reprieve had failed to provide documentary evidence that Shaikh or members of his family had a mental illness, Xinhua said. “Drug trafficking is considered a heinous crime according to world consensus,” Xinhua cited the Supreme Court verdict as saying. “Chinese law requires that everybody who commits a crime be treated equally. The use of the capital punishment creates an effective deterrent against drug trafficking.” At his last appeal hearing, Shaikh’s 50-minute testimony was “rambling and often incoherent” and “greeted with incredulity and sometimes mirth by court officials,” Reprieve said. The charity also published e-mails it said were from Shaikh and illustrated his mental instability. ‘Long History’ “Our specific concerns about the individual in this case were not taken into consideration despite repeated calls by the prime minister, ministerial colleagues and me,” Foreign Secretary David Miliband said in the U.K. government’s statement. “These included mental health issues, and inadequate professional interpretation during the trial.” Shaikh was arrested with 4 kilograms of heroin in September 2007, according to a statement by Reprieve. He was suffering a delusion and being manipulated by a drug gang, it said. Shaikh, from Kentish Town in London, had a “long history of strange behavior” and believed he was going to record a hit single in China, Reprieve said. The gang had promised to help him record the song , and asked him to carry the suitcase on a flight for them, according to the statement. He told authorities that the suitcase wasn’t his and he didn’t know about the drugs. Before landing in Urumqi, Shaikh had been living in Poland, where he met a man named Carlos, who told him he had contacts in the music business in China, according to Reprieve. Song Witnesses cited by Reprieve recounted a history of deteriorating mental health in Poland. Shaikh had written a song called “Come Little Rabbit” that he wanted to record, said Gareth Saunders, a U.K. musician who met Shaikh there, according to testimony on Reprieve’s Web site dated Dec. 28. Saunders said he had only just heard of Shaikh’s circumstances. “It was clear that Akmal had absolutely no musical talent, no sense of timing, and the song itself was dreadful,” Saunders wrote, adding that he was “totally delusional,” living in a shelter and seemingly homeless. Shaikh became the first European executed in China for 58 years since Antonio Riva was shot by firing squad in 1951, accused of plotting to kill Mao Zedong , Reprieve said. To contact the reporter on this story: Ben Richardson at brichardson8@bloomberg.net ; Ed Johnson in Sydney at ejohnson28@bloomberg.net .

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Obesity Becomes Shionogi Gamble in Search for Another Crestor Blockbuster

December 22, 2009

By Kanoko Matsuyama Dec. 22 (Bloomberg) — Persistence may pay off for Shionogi & Co. as it struggles to turn a promising scientific advance into a best-selling diet pill. The Japanese company, discoverer of the blockbuster cholesterol medicine Crestor, plans to stick with velneperit, an experimental obesity drug, after one of two key studies failed and Merck & Co. , Johnson & Johnson and GlaxoSmithKline Plc abandoned similar treatments. Shionogi is betting on a world market with the potential to expand 20-fold to $10.5 billion by 2018, according to estimates by London-based Datamonitor Plc. Even if it should eventually gain regulatory approval, velneperit may not be enough to offset the potential drop in annual sales when Crestor loses patent protection in 2016, said Gareth Powell , a fund manager in London. “I’ve not been impressed with the drug,” said Powell, who invests in health-care stocks for Polar Capital Partners Ltd., the manager of $2 billion of assets. “If they relied on this as the sole replacement of Crestor, I’d be pretty nervous.” Powell’s holdings don’t include Shionogi shares. Analysts at Barclays Plc in London and at Mitsubishi UFJ Securities Co. and Mizuho Securities Co. , both of Tokyo, are omitting the product from revenue estimates for Osaka-based Shionogi. The drugmaker needs velneperit and AIDS treatments it is developing with Glaxo to make up for the revenue plunge foreseen for Crestor, which now accounts for a quarter of Shionogi’s 223 billion yen ($2.5 billion) in annual sales, when the cholesterol drug loses patent protection in less than seven years. Side Effects Drugmakers have failed to find a weight-loss formula without side effects. Wyeth, now a unit of New York-based Pfizer Inc., pulled its fen-phen diet pill in 1997 and put aside $21 billion to settle a decade of litigation after the drug combination was linked to heart and lung damage. Paris-based Sanofi-Aventis SA dropped its weight-loss drug Acomplia, which the company had expected to generate $3 billion a year, in October 2008 after European regulators deemed that the risks of the pill outweighed its benefits. The drug had failed to win backing from a U.S. Food and Drug Administration panel in June 2007 over reports of suicide risks. Merck, of Whitehouse Station, New Jersey, and Pfizer stopped developing drugs similar to Acomplia. For drugmakers, the allure of the weight-loss market is hard to resist. The world had at least 400 million obese adults in 2005, a figure that may jump 75 percent to 700 million by 2015, according to the Geneva-based World Health Organization . Overweight and obese people face greater risk of heart attacks, strokes and diabetes than those with less body mass, according to the U.S. Centers for Disease Control and Prevention, based in Atlanta. Damped Sales Product withdrawals and failed treatments in the pipeline have hurt global sales of obesity drugs, which totaled $514 million last year, Datamonitor said. The number of obese adults in seven markets, including the U.S. and U.K., will climb at least 14 percent to 143 million in the decade to 2018, and assuming that a quarter of them will be treated for a year at $1 a day, the market could swell to $10.5 billion, the research company said. Velneperit is a gamble, as the latest tests showed that patients taking the drug shed 4.6 percent of their weight. While that compared with 1.2 percent for those given a placebo, medicines from Orexigen Therapeutics Inc. of La Jolla, California, and Vivus Inc. of Mountain View, California, have advanced further in development and yielded more weight loss. Without Velneperit Shionogi rose 1.1 percent to close at 1,949 yen in Tokyo trading. The stock has dropped 18 percent in the past 12 months, compared with a 6.4 percent gain for Japan’s benchmark Topix Index . For now, Shionogi is commanding growing sales and profit without help from its obesity drug, said Yasuhiro Nakazawa , an analyst at Mitsubishi UFJ Financial Group Inc. in Tokyo. The drugmaker’s operating profit will climb more than 20 percent annually through March 2013, Nakazawa said. He is one of 13 analysts, among 17 tracked by Bloomberg, who recommend buying Shionogi shares, citing sales led by Crestor . Shionogi, which discovered Crestor, sold rights to the drug to AstraZeneca Plc’s forerunner Zeneca Group in April 1998. In October, Shionogi halted its search for a partner to help develop velneperit outside Japan, as the company planned to carry out more studies to achieve a stronger result on the drug’s efficacy, President Isao Teshirogi said at an analysts’ briefing in November. Promising Test The company announced in February the outcome of two clinical tests, in the second of three stages required by regulators. One shows some promise: 35 percent of patients on a restricted diet who took velneperit for 54 weeks lost more than 5 percent of their weight, almost three times the proportion for those who were given a dummy pill. In the other test, there was little weight-loss difference between patients taking the drug and those on placebo. “The efficacy just wasn’t all that exciting,” Polar Capital’s Powell said. Shionogi is conducting new trials of velneperit in combination with an older medicine, Xenical from Basel, Switzerland-based Roche Holding AG. The Japanese company expects results around November 2010, pushing back by one year what had been its schedule to enter the final stage of development. The delay means the drug may not reach the market in time to help make up for Crestor’s patent expiration, said Hiroshi Tanaka , an analyst at Mizuho Securities in Tokyo. Advanced Drug Testing Besides the obesity pill, only one drug originating from Shionogi is in advanced stages of patient studies in the U.S., the world’s largest pharmaceutical market. The company is working with Glaxo on an HIV treatment that blocks an enzyme the virus uses to hijack healthy cells. Alpharetta, Georgia-based Sciele Pharma Inc., owned by Shionogi, has at least two drugs in advanced development: a spray to prevent premature ejaculation, and Adrenamate, a treatment for anaphylaxis, a potentially deadly allergic reaction. Shionogi said it is sticking with velneperit because the treatment shows more promise than Merck’s MK-0557. In one study involving dieting patients, Merck’s drug showed the test subjects regained some weight after finishing treatment. When combined with weight-loss medicines sold by Abbott Laboratories of Abbott Park, Illinois, and Roche, the drug didn’t show as much benefit as those products alone. Velneperit works by blocking a receptor called neuropeptide Y5, which plays a role in food cravings. ‘Can do Better’ “Merck tried everything it could and gave up,” Takuko Y. Sawada, Shionogi’s head of drug development, said in an interview from its laboratory in Osaka. The Japanese company “can do better” because of differences in the way velneperit shows its effect on weight management, Sawada said. Merck ended development of MK-0557 for obesity in 2005. The weight loss after one year of treatment wasn’t clinically meaningful, Ian McConnell , a Merck spokesman, said in an e-mail. Glaxo, Johnson & Johnson and Novartis also stopped testing drugs in the same class as MK-0557. “The human response to food is extremely complex,” McConnell said. “It appears that interfering with one pathway may not have a dramatic effect because there could be other pathways serving as backup systems that compensate for the change caused by the drug.” Terminated Project Melinda Stubbee, a spokeswoman for London-based Glaxo, said its project was no longer active. Ernie Knewitz , a spokesman for New Brunswick, New Jersey-based J&J, said development of its drug stopped several years ago. Eric Althoff , a spokesman at Basel, Switzerland-based Novartis, said its project was terminated. All three didn’t elaborate. Targeting Y5 alone probably can’t reduce body weight by much more than 5 percent because humans eat as a form of protection, said Herbert Herzog , head of the neuroscience research program at the Garvan Institute of Medical Research in Sydney. “As soon as you are starving and your body feels like your energy level is low, it’s driving you toward feeding,” Herzog said. “You are not programmed not to eat.” The U.S. FDA published guidance for the industry in February 2007 on developing medicines for weight loss. Products must meet at least one of two benchmarks. The first requires a minimum difference of 5 percentage points between weight loss from the drug and that from a placebo; otherwise, at least 35 percent of the group taking the drug must lose no less than 5 percent of body weight and the effect must be seen in twice as many patients as those on placebo. Rival Drugs Arena Pharmaceuticals Inc. , of San Diego, and Vivus plan to submit their respective obesity treatments, lorcaserin and Qnexa, to the FDA this year. Orexigen has said it will present its medicine, Contrave, in the first half of 2010. Most of those drugs combine at least two proven treatments to get around the need to eat. Contrave mixes an antidepressant with a narcotic. “Appetite is a fundamental function that humans can’t survive without,” said Kazuhiko Tatemoto, who co-discovered neuropeptide Y. “There are many pathways that control appetite so if you deactivate one, others get activated.” To contact the reporter on this story: Kanoko Matsuyama in Tokyo at kmatsuyama2@bloomberg.net .

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Cephalon’s Treanda Medicine Poised for Ten-Fold Sales Surge on New Data

December 7, 2009

By Meg Tirrell Dec. 7 (Bloomberg) — Cephalon Inc. ’s tumor fighter Treanda may reach $1 billion in annual sales, more than ten times revenue last year, with data supporting its use as a first- choice therapy for doctors against immune system cancers. Treanda is approved for patients with a slow-growing form of non-Hodgkin lymphoma that doesn’t respond to other drugs. About 30,000 Americans have the disease. When used with Roche Holding AG’s Rituxan in a study, Treanda stalled cancer growth 20 months longer than a four-drug chemotherapy cocktail also paired with Rituxan, the current standard of care. Lymphomas attack immune system filters in the body, called nodes, which trap infections and allow them to be destroyed by white blood cells. The newest data on Treanda was reported Dec. 5 at the American Society of Hematology meeting in New Orleans. It may make the drug, with only $75 million in 2008 revenue, the first therapy doctors use to treat this disease, and a company top-seller, said David Amsellem , of Piper Jaffray & Co. “It could be a widely used alternative” to the chemotherapy standard, said Amsellem, an analyst based in New York, in a Dec. 3 interview. “Could it make Treanda into blockbuster type of agent, up to $1 billion in peak sales? I don’t think that’s beyond the realm of possibility.” Cephalon, based in Frazer, Pennsylvania, declined 7 cents, or less than 1 percent, to $55.38 in Nasdaq Stock Market trading on Dec. 4. The shares lost 28 percent in 2009 before today. 3.8% of Revenue The cancer drug generated just 3.8 percent of Cephalon’s $1.97 billion in revenue last year, its first on the market. The company’s top product, Provigil for sleep disorders, had 2008 sales of $998.4 million. Treanda was cleared on March 20, 2008, for patients with chronic lymphocytic leukemia, a cancer of the soft tissue inside bones where blood cells are made. The drug won U.S. approval seven months later as a back-up therapy for patients with the slow-growing form of non-Hodgkin lymphoma, or NHL. The trial, with more than 500 patients, showed Treanda delayed cancer growth for 55 months, compared with 35 months for those taking the standard regimen. After a median observation time of 32 months, 40 percent of the Treanda-treated patients had the disease completely disappear, compared with 31 percent on the older therapy, the data show. Treanda also had fewer infections and less hair loss than the standard therapy, the research found. ‘A Homerun’ “It’s basically a homerun — not only was it less toxic, but it was more efficacious,” said Richard Van Etten , director of the Tufts Medical Center Cancer Center in Boston, in a Dec. 5 interview. “It is potentially practice-changing.” The four-drug chemotherapy, called CHOP, includes cyclophosphamide, adriamycin, vincristine and the steroid prednisone. Rituxan , with $2.59 billion in the U.S. sales last year for Roche’s Genentech unit, is typically added to the older medicines to improve survival. Cambridge, Massachusetts-based Biogen Idec Inc. co-markets Rituxan with Roche. “CHOP has been the standard of care for three decades, and this is the first truly different combination,” said Vincent Picozzi, a hematologist and oncologist at the Virginia Mason Clinic in Seattle, and a scientific committee member at ASH, in an interview. Using Treanda instead of the CHOP cocktail in slow-moving NHL treatment could increase the number of U.S. patients taking Treanda each year to about 30,000 people, Piper Jaffray’s Amsellem said. ‘First-Choice Potential’ The Treanda-Rituxan combination “has the potential to become the treatment of first choice,” said Mathias J. Rummel, the lead study author and head of the hematology department at the University Hospital in Giessen, Germany. His research was done without funding from Cephalon. Almost 66,000 people will be diagnosed this year with non- Hodgkin lymphoma, or NHL, according to the White Plains, New York-based Leukemia & Lymphoma Society . About half will have an indolent, or slowly progressing, form of the disease. Treanda costs about $36,000 a year, representing a sales opportunity of about $275 million if a quarter of the indolent non-Hodgkin lymphoma patients in the U.S. use the drug, Amsellem said. The treatment is also being prescribed with increasing frequency to patients as a first-line attack on chronic lymphocytic leukemia, or CLL, an approved indication, he said. “Adding up usage in CLL, usage in relapsed/refractory NHL and first-line NHL, one could envision Treanda approaching $1 billion in sales three to four years from now,” Amsellem wrote in an e-mail. Second Study Another Treanda study at the hematology meeting combines the drug with Rituxan for chronic lymphocytic leukemia, and showed “very encouraging efficacy,” Cephalon Chief Medical Officer Lesley Russell said in an interview. The company needs to examine the data and documentation in the study to determine whether it can be submitted to the U.S. Food & Drug Administration for approval of a new use of Treanda, she said. “I would hope that toward the middle of next year we would have some idea of whether we can do this,” Russell said by telephone Dec. 3. “To see better efficacy and better tolerability is quite a significant advance.” Treanda may be included in reference books called compendia that Medicare uses to decide whether to pay for cancer patients’ unapproved treatments, said Bret Holley , an analyst with Oppenheimer & Co. in New York. While the drug is unlikely to receive FDA approval for its third use through the German study, it may gain compendia listing by the end of 2010, he said. While Cephalon may not promote Treanda for unapproved uses, physicians are free to prescribe the drug for so-called off- label purposes. Reimbursement Barrier “A compendia listing would remove many barriers to reimbursement, and we expect Treanda’s frontline NHL use to increase as a result,” Holley wrote in a Nov. 10 research note. He estimates Treanda sales will peak at $700 million from non- Hodgkin lymphoma and chronic lymphocytic leukemia uses, with about $300 million from first-line treatment of NHL. Cephalon has started its own trial similar to the German study, Russell said. The company expects to complete it in the third quarter of 2011 and to see the data by the end of that year, according to spokeswoman Jen Antonacci . To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net .

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Merck’s Cholesterol Pill Woes May Intensify on Loss to Abbott’s Niaspan

November 16, 2009

By Shannon Pettypiece Nov. 16 (Bloomberg) — A finding that Merck & Co.’s cholesterol pills Vytorin and Zetia didn’t reopen clogged arteries as well as Abbott Laboratories ’ Niaspan has set off a medical debate on heart treatment strategies. In the trial, researchers reported finding a reduction in the thickness of artery walls in patients given Niaspan, while those on Zetia had no change. Artery thickness is believed to be a predictor of risk in heart attack and stroke because it restricts blood flow, the researchers said. The results reported yesterday at the American Heart Association meeting in Orlando, Florida, may raise doctor awareness of the role of good cholesterol, or HDL, in heart health. It could also pump up sales for Abbott’s drug, a form of niacin, or Vitamin B, that increases HDL, and mean less revenue for Merck’s Zetia and Vytorin, which combines Zetia with the statin simvastatin to lower bad cholesterol, or LDL. “There will be an up-tick in the use of niacin because of this,” said Steven Nissen , chief of cardiology at the Cleveland Clinic in Ohio, in an interview yesterday. “It was quite a compelling result. Yes, it is a small study; yes, it isn’t a substitute for a large definitive outcomes trial. But I do think it will get attention, and I do think it will inform us about the choices we have about what therapies we should administer.” Revenue Drop Revenue for Zetia and Vytorin could fall 20 percent, or $800 million, with a negative finding, said Seamus Fernandez , a Leerink Swann & Co. analyst in a note to investors last week. Sales for the two drugs have dropped 14 percent this year to about $3 billion. Merck, located in Whitehouse Station, New Jersey, rose 12 cents to $33.10 in New York Stock Exchange composite trading on Nov. 13, and has risen 21 percent in 2009. Abbott, of Abbott Park, Illinois, fell 28 cents to $52.95. It has declined 4 percent for the year. Roger Blumenthal , a professor of cardiology at Johns Hopkins University in Baltimore, said the study shouldn’t be used by doctors to decide treatment. In an editorial released by the New England Journal of Medicine, Blumenthal described artery thickness as a secondary measurement for heart risks that may not give the same result as a study gauging the total number of heart attacks and strokes from use of the drugs. Further, the benefits of Niaspan may also be exaggerated because the study was ended early, he said. The study wasn’t “large or long enough to draw broad conclusions’,’ said Ken Frazier , Merck’s president of global human health, in an interview yesterday “If people stop lowering LDL there are going to be deaths, that is a fact.” Four Months Sooner Allen Taylor, the study author and a cardiologist at Washington Hospital Center in the District of Columbia, said he ended the trial about four months sooner than expected when it became clear that Niaspan had significantly outperformed Zetia. It wouldn’t have been in the patients’ best interest to keep the trial going, Taylor said in a telephone interview. The study was able to reach a conclusion with fewer patients and over a shorter time period than first thought because the technology being used was more precise than expected, he said. The negative result is the third in two years for Zetia and Vytorin. The first trial, dubbed Enhance, found Vytorin didn’t help artery health more than Merck’s Zocor, sold generically as simvastatin for 77 percent less. Data presented in July 2008, in a trial called SEAS, found more patients taking Vytorin developed cancer than those on a placebo, a finding later contradicted in another study. Merck Study There are no studies that have shown that Zetia reduces the risk of heart attacks and stroke. Merck is currently working on one such study involving 18,000 patients. The results won’t be available until 2012, a decade after the drug came on the market. In the Abbott-funded study reported yesterday, called Arbiter-6 Halts, researchers measured the thickness of the neck artery leading to the brain in 208 patients, using an ultra- sound. They were given simvastatin along with either Niaspan, a modified form of vitamin B also known as niacin, or Zetia over 14 months. The study only looked at patients who had already lowered their LDL cholesterol to the recommended level of 100 milligrams per deciliter of blood or less using a statin. “We’re answering a simple question that clinicians need to know the answer to in order to take better care of their patients,” said Taylor, the study author. “The trial results are ultra-clear, Niaspan worked better than Zetia and, through that hopefully, patients are going to benefit.” Heart Attacks, Strokes Even with statins, which recorded $34 billion in worldwide sales last year, patients are having heart attacks and strokes, so doctors continue to seek additional treatments, said Richard Karas , a professor of medicine at Tufts University medical school in Boston, in a telephone interview. Previous studies suggest that HDL-raising drugs could double the benefit of lowering bad cholesterol, he said. Heart disease, the build up of fatty plaque in the arteries, killed 445,687 people in 2005 and is the leading cause of death in the U.S., according to the American Heart Association. With the introduction of statins and procedures to reopen arteries, the death rate from heart disease declined 34.3 percent between 2005 and 1995 in the U.S., though 1.26 million Americans will have a heart attack this year, according to the heart association. Digestive Track One approach to cutting the number of heart attacks has been trying to lower the LDL as much as possible by increasing the dosage of a statin, or using Zetia, which is designed to work in the digestive tract by stopping the absorption of cholesterol from food. Niaspan, by contrast, works by raising levels of high- density lipoprotein, or HDL cholesterol, believed to protect against heart attacks by collecting excess artery-clogging LDL cholesterol in the blood and taking it to the liver where it can be disposed. HDL may also provide a protective benefit to the heart and blood vessels through its antioxidants, anti-inflammatory and anti-clotting effects, according to the Mayo Clinic. Using Niaspan, with $786 million in sales last year, to raise HDL has been limited because the drug can cause facial flushing. Merck is testing a form of niacin in combination with an experimental drug laropiprant and will seek U.S. regulatory approval for the medicine as early as 2010. “If Niaspan is superior to Zetia in the study, we expect the data to provide the Niaspan franchise with a shot in the arm especially if there are significantly fewer events in the Niaspan group,” said Larry Biegelsen , an analyst with Wells Fargo Advisors LLC in New York, in a note to investors on Oct. 26, before the study’s finding were reported. Safety Differences The Arbiter study released today wasn’t large or long enough to detect a significant difference in the rates of heart attacks and strokes, said Taylor, the study author. Though the research found that 5 percent of patients taking Zetia had a heart attack or stroke compared with 1 percent on Niaspan, that finding is not definitive because of the limited size of the study, Taylor said. Patients taking Niaspan were more likely to drop out of the study because of side effects, the study showed. About a third of Niaspan patients said they experienced facial flushing. Zetia and Vytorin have been shown to lower levels of LDL cholesterol better than statins alone and doctors should focus on getting their patients’ LDL cholesterol to the levels recommended by the American Heart Association, said Merck’s head of research Peter Kim said in an interview. “Lowering LDL is an extremely well validated step toward improving cardiovascular health,” Kim said. “Numerous studies have shown, if you lower LDL you decrease cardiovascular risk and save lives.” To contact the reporter responsible for this story: Shannon Pettypiece at spettypiece@bloomberg.net .

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Antipsychotic Drugs in Kids Linked to Rapid Weight Gain, Research Finds

October 27, 2009

By Nicole Ostrow Oct. 27 (Bloomberg) — Children and teens who took antipsychotic medicines in a study gained weight and developed increased blood-fat levels, possibly harming their future health, researchers in New York State said. The subjects, taking the antipsychotic drugs for the first time, gained from 9.7 to 18.7 pounds (4.4 to 8.5 kilograms) after about 11 weeks of treatment, depending on which medicine they were given, the scientists said today in the Journal of the American Medical Association. Fifteen patients who didn’t stick with drugs or who declined to participate in the research gained less than half a pound on average. The study was the largest to show how antipsychotic medicines affect the bodies of children taking the drugs for the first time, the researchers wrote. Many past studies of the drugs involved patients who had also used other treatments — methodology that may have masked the extent of weight gain, according to an editorial published along with the study. “We were able to show all of these agents can cause quite a bit of body weight changes and body composition changes that are not beneficial to the health,” said Christoph Correll , the study’s lead author, in a telephone interview on Oct. 23. “What we need to figure out is what are the long-term consequences in the lives of children,” Correll, who is a medical director at Zucker Hillside Hospital in New York City’s Queens borough and an associate professor of psychiatry at Yeshiva University’s Albert Einstein College of Medicine in the Bronx. Metabolic Syndrome Gaining weight and changes in blood sugars and fats can be precursors to metabolic syndrome , a group of risk factors linked to heart disease and diabetes, according to the research article. Patients in the study had been diagnosed with mood disorders, schizophrenia and disruptive or aggressive behavior. Their doctors had prescribed Bristol-Myers Squibb Co.’s Abilify, Eli Lilly & Co.’s Zyprexa, AstraZeneca Plc’s Seroquel or Johnson & Johnson’s Risperdal. Risperdal and Abilify are the only two antipsychotics approved for pediatric use. A panel of outside advisers to the U.S. Food and Drug Administration recommended in June that Seroquel, Zyprexa and Pfizer Inc.’s Geodon be cleared for pediatric use. The medicines, so-called atypical antipsychotics, were introduced for adults in the mid-1990s and marketed as having fewer neurological side effects than older drugs. The FDA has grappled with pediatric use for years because of concerns that the weight gain, sleepiness and movement disorders reported as side effects in adults may be more pronounced in children. Sales in Billions U.S. sales of antipsychotic drugs reached $14.6 billion last year, the most for any class of medicines, according to IMS Health Inc. in Norwalk, Connecticut. Use of antipsychotic medicines by people less than 20 years old has more than doubled since 2001, according to data compiled by Medco Health Solutions Inc. of Franklin Lakes, New Jersey. The study reported today was conducted to determine if weight gain and other changes to the body were related to the start of a psychiatric illness or hospital admission, or to the medicines. Researchers at Zucker Hillside, and at the Feinstein Institute for Medical Research in Manhasset, New York, studied 272 people ages four to 19 who were prescribed the antipsychotic medicines for behavioral, mood or psychosis-related problems. The patients were followed for the first 12 weeks. Added Pounds At about 11 weeks, those taking Zyprexa gained 18.7 pounds on average, compared with 13.4 for Seroquel, 11.7 for Risperdal and 9.7 for Abilify, the study showed. “The extent and the rate of weight gain is remarkable,” said Christopher Varley , a professor in the psychiatry and behavioral sciences department at the University of Washington in Seattle, in a telephone interview on Oct. 23. “Realistically the kids were exposed to 11 or 12 weeks of medication. Some of them gained over 20 pounds.” Varley co-wrote the editorial in the journal that was published along with the study. Ten percent to 36 percent of the patients in the study became overweight or obese within 11 weeks of starting the medicine, the researchers said. Those on Zyprexa had larger increases in cholesterol and blood sugars, according to the study. Those on Risperdal had rises in their levels of triglyceride, a type of fat found in the blood, without affecting their blood sugar, the researchers wrote. Those on Seroquel also had an increase in total cholesterol and triglycerides, and patients on Abilify didn’t have any significant worsening in their blood fats or blood sugars, according to the scientists. Monitoring Kids Correll recommended that parents monitor their children’s weight and make sure the kids are eating healthy food and exercising. Doctors in some cases should consider counseling and behavior therapy, as well as parental training, before prescribing the drugs, Correll said. Once the medicines are given to children and adolescents, doctors need to frequently monitor the weight gain and the patients’ blood sugars and blood fats, he said. In the editorial accompanying the study, Varley wrote, “Given the risk for weight gain and long-term risk for cardiovascular and metabolic problems, the widespread and increasing use of atypical antipsychotic medications in children and adolescents should be reconsidered.” The study was funded partly by the U.S. National Institutes of Health, based in Bethesda, Maryland. For Related News and Information: To contact the reporter on this story: Nicole Ostrow in New York at nostrow1@bloomberg.net .

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Vivian Norris de Montaigu: Something You Should Know About Profits, Vaccines and Tort Reform

October 9, 2009

According to foodconsumer.org : Department of Health and Human Services Secretary Kathleen Sebelius has not only given immunity to the makers of Tamiflu and Relenza for injuries stemming from their use against swine flu, she has granted immunity to future swine flu vaccines and ‘any associated adjuvants.’ The last time the government embarked on a major vaccine campaign against a new swine flu, thousands filed claims contending they suffered side effects from the shots. This time around, they will have no recourse. The 2006 Public Readiness and Emergency Preparedness Act (the PREP Act) allows the DHHS Secretary to invoke almost complete immunity from liability for manufacturers of vaccines and drugs used to combat a declared public health emergency. On Dec. 30, 2003, the Food and Drug Administration cleared the way for the use of an anthrax vaccine against the threat of both inhaled and skin-related anthrax. This decision resulted from the lifting of an injunction by Judge Emmett Sullivan, of the United States District Court for the District of Columbia. Previously, Judge Sullivan had agreed with plaintiffs, soldiers who remain anonymous, that this vaccine was in fact “investigational,” and was being administered to troops, for an “unapproved purpose.” To date, we still do not know who was responsible for the post 9/11 distribution of anthrax through the U.S. postal service. Yet we do know which companies, and individual investors will be making profits from the non-competitive contracts awarded to them, and the government grants resulting from the multi-billion dollar increases in defense and anti-terrorism spending pushed through by the current Bush administration. In the case of anthrax, the biotechnology company, Elusys, presidential brother (and son of former president), Neil Bush, was not only on the board, he raised the venture capital in Houston for the biowarfare-technology start-up through Interlink Management, working out of his father’s office. This same presidential brother was legally barred from certain financial activities after his involvement in the S&L Silverado Savings and Loan crisis, which cost taxpayers billions to bail out. Elusys is linked to biowarfare “research” and vaccines to be tested and used to vaccinate both soldiers and civilians in the near future. Now Elusys plans to start SARS vaccine research, as well, therefore accessing even more grant and contract money from the U.S. taxpayers. Although the human deaths from anthrax and SARS were limited, the fear and financial costs related to the scare were immense. Then President George W. Bush, through provisions in the Homeland Security Act, opened the gates for billions of dollars in biotech financing. This money will eventually make its way into the pockets of those who were “at the right place at the right time,” in other words, those given access to limited inside information about which companies were well-connected, and thus, most likely to benefit and even influence, government spending. Elusys’s board member, Steven Sudovar, testified post-9/11 before Congress, helping to smooth the way for the spending increase which followed, and which benefited many Bush supporters with investments in biotechnology. Yet the most disturbing aspect of the free reign given to these companies in this new age of terrorism and fear, is that they will be able to test their medicines and vaccines on humans, even selling these same products, without any real liability if anything goes wrong. President Bush’s tort reform, begun in Texas and now virtually to the national level, ensures that these same companies are protected from costly lawsuits, which have been the consumer, and individuals’ only recourse in case of illness or death. It was during the first Gulf War that then President Bush’s advisor, John Deutsch, demanded that vaccine companies creating biowarfare vaccines for troops be protected from potentially costly lawsuits. In other words, if the guinea pigs became ill or died, no one could sue them. And as it has been proven that some adjuvants used to render vaccines “more effective” squalene for one, can seriously harm human beings, we will surely see more illnesses as a result of increasing use of vaccines overall. New technologies being used for vaccines are raking in profits for these companies. Monoclonal antibodies and the royalties are the mineral rights of the biotech/pharma world. The profit structure is even modeled on that of the oil industry — and some of the same players are involved once again. And while the companies will make more profits, they will also not have to pay if any harm is done by their products. Their good ole boy buddies took tort reform to Texas and then once in the White House took it nationwide. The Food and Drug Administration, which regulates drug approval, has a long waiting period and, until recently, strict codes of conduct for human research. This process has sped up considerably since September 11, 2001, and several companies have had their drugs put on “fast track” status and virtually pushed through to the human testing and approval stages. In some human drug and vaccine testing cases, FDA waivers are allowed for highly experimental vaccines due to circumstances related to being “at war.” Elusys, part of the Mederex group, is also benefiting from its strong Bush and FDA connections. Another Elusys board member is a former head of the FDA, virtually assuring the company that its products were pushed through, earning “fast-track” status. This company has already won millions in non-competitive bids, which include the government’s agreement to purchase the vaccines as well. Elusys came into existence only two years prior to the September 2001 anthrax poisonings by letters mailed from New Jersey. Elusys’ headquarters are based in New Jersey. The anthrax cases have yet to be solved, but one hopes that Elusys’ labs were investigated as they harbored live anthrax for making vaccines. More research needs to be done looking into the companies supplying the vaccines for the troops. As these drugs are being “fast-tracked” through the FDA, they remain experimental, and the troops become in fact, guinea pigs for the human testing phase of the vaccines. Human testing is both the most expensive and dangerous part of any drug’s life as it finds its way through the FDA to receiving approval for sales. Thus, once again, private companies and their well-connected investors, are being subsidized by the government, which is supplying troops for human testing, as they did during the first Gulf War. The new order will also include the enforcement of the utilization of a smallpox vaccine which will be administered to all soldiers and essential civilians in the Middle East, as well as to troops in South Korea. Although I am not going to advocate from my research refusing to take any and all vaccines, I do recommend that people inform themselves about tort reform and the companies making the profits. We all know big Pharma is working against Americans having universal coverage, but what many do not know is how tort reform protecting these same companies was put in place as a result of 9/11. Remain vigilant when it concerns your health and that of your children.

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Stacie Ritter Cries `Shame’ at Insurers Winning Washington’s Health Game

September 30, 2009

By Heidi Przybyla Sept. 30 (Bloomberg) — Stacie Ritter stood outside health insurer Cigna Corp’s Philadelphia headquarters clutching photocopies of her four-year-old, cancer-stricken daughters as she shouted “shame.” Ritter, 35, along with thousands who protested outside the offices of major health insurers last week, gives voice to the complaint that companies may reap billions from health-care overhaul even as they deny treatments. She says her identical twins, Madeline and Hannah, now 11, were denied hormone therapy prescribed by her endocrinologist. Cigna Communications Director Chris Curran says two other endocrinologists determined the girls don’t need the drugs. Both President Barack Obama and U.S. House Speaker Nancy Pelosi , a California Democrat, have cited similar anecdotes in pushing for a government option that would compete against insurers like UnitedHealth Group Inc. Pelosi has called insurers such as Cigna and WellPoint Inc. “villains” and “immoral” and Obama singles out the industry for scorn in almost every health-care speech. Yet the condemnations may carry little consequence. It may be the private insurers who emerge as winners in the health-care overhaul. Yesterday the Senate Finance Committee voted against creating a so-called public option, a victory for insurance companies that have made defeating the provision their chief aim. ‘Biggest Winners’ Health insurance companies “could well be the biggest winners here,” said Robert Laszewski , an Alexandria, Virginia- based consultant to health insurers and other companies. “It’s an incredible irony,” he said. Wendell Potter , Cigna’s communications director until he left last year to become a critic, says the industry is close to achieving its two major aims: defeating the public option and winning a mandate that would require all adults to purchase health insurance. “It would be an enormous gift to the industry,” said Potter. Defeating the public option is “the big prize” because such a plan would force them to lower their rates, he said. Under legislation proposed by Senator Max Baucus , a Democrat from Montana who is chairman of the Finance Committee, the companies also are likely to pass many of the new taxes on to consumers, while getting millions of new customers subsidized by the government, amounting to about $450 billion in new revenue, said Laszewski. Rising Rates? A Sept. 23 Goldman Sachs report said most of a proposed $6.7 billion industry fee on insurers would be “passed through to purchasers,” raising rates by about 1 percent. A Sept. 23 letter to Baucus from Blue Cross and Blue Shield Association said the effect would be “much more significant.” The companies reject the notion that they haven’t given up a lot and point to concessions including a ban on rejecting new customers with preexisting conditions, restrictions on their ability to set premiums, and a series of new taxes that could total $336 billion over ten years. “We have some significant concerns with what is being proposed,” said Robert Zirkelbach , spokesman for America’s Health Insurance Plans. The Standard & Poor’s index of 13 managed-care companies has dropped 4.85 percent over the past month, with industry leaders like WellPoint of Indianapolis and UnitedHealth Group Inc. of Minnetonka, Minnesota, among the biggest losers. Switching Providers The rally outside Cigna Sept. 22 was part of coordinated protests at offices of major insurers including WellPoint, Aetna Inc. in Hartford and UnitedHealth. Ritter, from Manheim, Pennsylvania, says Aetna, her former insurance company, had been covering the drugs until her husband’s company switched to Cigna, which denied the hormones. The late Dr. Thomas Moshang, former head of endocrinology at Children’s Hospital in Philadelphia, prescribed them after determining the girls were not growing properly. Ritter said state law made it difficult to pursue a lawsuit. Madeline and Hannah now receive the drugs through a grant from Eli Lilly & Co ., the manufacturer. Cigna says it is the first time it’s hearing of Ritter’s concerns. The endocrinologists who reviewed the case found “no need for the drug,” said Curran , the spokesman. He later clarified that it’s the first time Cigna had heard “she did not agree with our decision.” Beaten Down The bills moving in the House and Senate would most likely establish an independent review process for claims denials, said Karen Pollitz , a professor at Georgetown Health Policy Institute in Washington. Still, it’s unclear if those mechanisms will help families like the Ritters. “Insurers will always have an incentive to avoid the cost,” said Pollitz, saying only a tiny percent of those who get hurt or encounter serious problems pursue formal appeals. Ron Pollack , executive director of Families USA , an advocacy group for health-care consumers, said the public must also consider that the companies have agreed to end discrimination against preexisting conditions, health premiums based on health status or gender and lifetime caps. “These things, which everybody takes for granted, are significant advances that will require insurance industry change,” he said. “Just because they feel it’s a net benefit to them does not mean it’s not a net benefit also to America’s families.” While Laszewksi says the major corporate stakeholders, including hospitals and drug companies, are making about $400 billion in concessions, “We are not even talking about 1 percent of what the health-care system is going to cost over the next ten years,” he said. To contact the reporter on this story: Heidi Przybyla in Washington hprzybyla@bloomberg.net .

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House Committee Clears U.S. Health-Care Plan, Setting Up Vote in September

August 1, 2009

By Nicole Gaouette and Kristin Jensen Aug. 1 (Bloomberg) — Legislation to overhaul the U.S. health-care system cleared its final House committee, setting up a September floor vote on a measure that may curb the profits of insurers and drugmakers and would extend coverage to tens of millions of uninsured Americans.

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Doctors Should Tailor Swine Flu Treatment to Death Rates by Age Group

July 27, 2009

By Carey Sargent July 27 (Bloomberg) — Governments without sufficient stockpiles of antiviral drugs should prioritize treatment for swine flu based on age-specific fatality rates , a study said. Giving antivirals to the elderly should be a priority if the current outbreak follows the patterns of the 1969-1970 flu pandemic in Italy, where deaths occurred primarily among those older than 65, research published in the BioMed Central Infectious Diseases medical journal found. Treatment of younger adults should be the focus if the flu is more like the 1918-1919 pandemic in Copenhagen, the study said.

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California Sprouts ‘Green Rush’ From Marijuana

July 18, 2009

SAN FRANCISCO — A drug deal plays out, California-style: A conservatively dressed courier drives a company-leased Smart Car to an apartment on a weekday afternoon. Erick Alvaro hands over a white paper bag to his 58-year-old customer, who inspects the bag to ensure everything he ordered over the phone is there. An eighth-ounce of organic marijuana buds for treating his seasonal allergies

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California Sprouts ‘Green Rush’ From Marijuana

July 18, 2009

SAN FRANCISCO — A drug deal plays out, California-style: A conservatively dressed courier drives a company-leased Smart Car to an apartment on a weekday afternoon. Erick Alvaro hands over a white paper bag to his 58-year-old customer, who inspects the bag to ensure everything he ordered over the phone is there. An eighth-ounce of organic marijuana buds for treating his seasonal allergies

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