Monthly Archives: June 2002

Report raps drug firms’ ‘post-approval’ studies
Drug manufacturers spent $1.5 billion in 2000 to test medicines already approved by the Food and Drug Administration primarily so they could make new marketing claims to sell their products, industry specialists said this week. Critics say the trend inflates health care costs while undercutting the integrity of research.

Networked Pharma
The pharmaceutical industry is experiencing a deepening productivity crisis. The industry’s preferred escape mechanism from this predicament has been to increase investment in current business activities – primarily R&D and sales – to sustain productivity levels or, ideally, to exploit economies of scale. This has been implemented through organic growth of critical resources and/or M&A. The fact that productivity continues to decline after a decade of vigorous growth in investment levels, and against a background of increasing company size, bears testament to the fallibility of this strategy.