Quote Of The Week: Pharma Has A Black Eye
At this point, former Merck ceo Roy Vagelos is arguably the elder statesman in the pharma biz, and he’s not shy about voicing some opinions. Sure enough, he shared a few while delivering a keynote speech this week at the annual meeting of the International Society for Medical Publication Professionals, which CNBC’s Mike Huckman dutifully noted in his blog.
“Most drugs are a terrific bargain,” says Vagelos, and he believes that high prices are justified if the drug offers high value. But he went on to say that he has a problem with the $50,000 price tag for a drug that adds four months of life. He didn’t mention which drug, but here’s his point:
“There is a shocking disparity between value and price, and it’s not sustainable. The industry will bring about government price controls which will be devastating for the industry…I don’t care what the cost is, it’s inappropriate. The industry has a black eye. And the market will correct that.”
Vagelos also complains that pharma should be more philanthropic: “When important drugs are introduced companies will have to make arrangements to get them into the developing world.” Why? Besides saving lives, Vagelos believes the gesture will generate goodwill in places that could become lucrative growth markets, Huckman writes. And, Vagelos adds, it would also go a long way toward restoring “credibility.”







