Marcia Angell's new book about drug companies is titled The Truth About the Drug Companies: How They Deceive Us and What To Do About It. According to reviewer Jeanne Erdmann in the St. Louis Post-Dispatch, in writing the book, Angell "uses the analytical skills learned at 20 years on the editorial staff of the New England Journal of Medicine"--
Angell begins her investigation by doing what children of Watergate learned to do: Follow the money.
Americans spend $200 billion a year on prescriptions drugs. In 2002, for big pharma, the collective name for the top 10 drug companies in the world, profits were 17 percent of sales. Need that number put in perspective? Angel writes, "The most startling fact about 2002 is that the combined profits for the 10 drug companies in the Fortune 500 ($35.9 billion) were more than the profits for all the other 490 businesses put together ($33.7 billion) ... When I say this is a profitable industry, I mean really profitable. It is difficult to conceive of how awash in money big pharma is."
Where do profits go? Let's follow the money.
Angell writes, "According to a report by the nonprofit group Families USA, the former chairman and CEO of Bristol-Meyers Squibb, Charles A. Heimbold Jr., made $74,890,918 in 2001, not counting his $76,095,611 worth of unexercised stock options. The chairman of Wyeth made $40,521,011, exclusive of his $40,629,459 in stock options. And so on. This is an industry that amply rewards its own."