Thailand Not a Threat to Pharmaceutical Industry
by David E. Williams
Health Business Blog
Todd Seavey from the American Council on Science and Health has himself worked up into a lather about Thailand’s willingness to break drug company patents to cut its spending on AIDS drugs: (Drug Patent Violations, Knock-Offs Harm Us All)
Contrary to the assertions of the Thai government and Doctors Without Borders.. violating drug companies’ patents and making knock-offs of their drugs is not in the long-term best interest of patients. Just as letting people shoplift today can drive stores out of business tomorrow — and just as price controls make customers happy for a day but produce long-term shortages — so too do patent violations gut the incentive to invest millions in researching the even better drugs of tomorrow…Economically and scientifically ignorant moves like this could shrivel or destroy the pharmaceutical industry, and that will not make the Thais or anyone else healthier in the future.
(Actually, the drug companies have a lot more to fear from today’s Supreme Court decision that will make it harder for them to patent obvious inventions for extended release formulations.)
But let’s examine Seavey’s arguments for a minute:
1. Is breaking a patent like shoplifting? Will it “drive stores out of business”?
2. Will moves like Thailand’s “shrivel or destroy the pharmaceutical industry”?
Shoplifting hurts stores because they get zero revenue for goods they paid for. It raises their cost of doing business by forcing them to pay for security measures and to raise prices to make up for their losses. I’m not sure what the “stores” are in Seavey’s analogy. In general, drug wholesalers and pharmacies are pleased to stock and sell generics, which tend to be as or more profitable than branded products. (Drug stores don’t tend to allow shoplifting of generic or brand drugs.)
Thailand isn’t going to be stealing pills from Abbott, it’s just not going to place any orders.
Thailand’s moves aren’t going to affect whether companies continue to develop new drugs and certainly won’t destroy the industry. That would only happen if the US, Europe or Japan eliminated patents. Thailand doesn’t factor into the go/no-go decision for pharmaceutical development. Sure, Thailand is freeloading –but look at the benefits they’re already deriving in the form of lower prices from the branded players.
The best hope the drug makers have to keep Thailand and other developing companies from breaking their patents is to find other pressure points besides the unpersuasive (not to mention untrue) argument that they are destroying incentives for drug development. That’s why the pharmaceutical industry pays such close attention to trade legislation.
There’s a self-correcting mechanism that makes Thailand and its ilk less of a threat to the pharmaceutical industry than it may seem. Once a country starts producing substantial intellectual property of its own it begins to be more respectful of patents. That transition is highly correlated with an increase in national wealth that makes a country able to pay for high-priced drugs in the first place.
Source: HealthBusinessBlog.com
RELATED READING:
- Thailand’s Compulsory Licensing of Pharmaceuticals Under TRIPS Stirs Controversy
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Medical Firms Make Product Placement Deals with ER, Grey’s Anatomy
by Sara Calabro
Med Tech Sentinel
Small medical device firms don’t spend much time worrying about advertising. When working within tight budget constraints, a 30-second spot is a luxury most emerging firms can’t afford. But product placement may be an opportunity for smaller companies to get their products in front of a consumer audience – without breaking the bank.
Washington CEO magazine today has an article about three Seattle-area firms that have landed their products on Grey’s Anatomy and ER through barter deals with television networks. Philips Medical Systems, Cardiac Science (CSCX) and SonoSite (SONO) have seen their devices appear on one or both shows and have paid nothing for the honor. “These relationships are basically win-win because these productions need the props, and this helps us to build awareness of our brand,” Philips’s North American CEO Brent Shafer tells Washington CEO. He says it would cost between $7 million and $8 million to buy the equivalent amount of air time to what Philips gets for free each year through product placement barter deals.
Sure, established companies like Philips have the manpower to negotiate these kinds of deals. But it’s something for small companies to consider. Instead of saving pennies for that 30-second spot, perhaps a nominal investment in reallocating marketing resources to focus on barter deals would be a worthwhile investment.
“The fact is,” Cardiac Science’s VP of marketing, Garry Norris, tells CEO, “when our products appear in the show, we get a lot of e-mail. Customer service gets calls from people saying, ‘I saw your product on Grey’s Anatomy and wanted to learn more about it.’”
Source: OneMedPlace.com
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Cramer’s "Ultimate Defensive Portfolio" of Medical Stocks
Jon C. Ogg
24/7 Wall St.
On tonight’s MAD MONEY on CNBC, Jim Cramer said he’s seen enough earnings from big companies and he is fed up with the Fed sitting around while the US economy is slowing. He wants to show you stocks that are safe and ones that will make you money. This is his “Ultimate Defensive Portfolio” of 3 stocks for tonight. He is looking for companies still growing that are not growing only because of overseas growth. He is unveiling 3 medical related:
CR Bard (BCR) is one he’s been behind since 2005, and he is still behind it. He thinks this is a great medical device maker that has 65% of the peripherally inserted catheters and leaders in other catheters. He also likes their biopsy technology and the angioplasty operations. They are mostly #1 or #2 in their markets. In 2005 he thought it would be a takeover target, and he thinks it is still a takeover candidate in 2007. Anyone wanting to buy this company has to do it before the Democrats get to change the merger rules. This one is also in a group that the healthcare spending won’t hit.
Jim Cramer’s Second defensive stock on CNBC’s MAD MONEY in medical devices as a portfolio of last resort is Becton Dickinson (BDX). It is a safe traditional medical device and diagnostics company. They even invented a longer needle because of Americans getting fatter and needing longer needles. The Genome and Tripath acquisitions are going great and they are into screening for cancer. It is up 31% since he first recommended it in July, but their increased guidance will drive this stock higher. The analysts are 4 buys and holds, so he thinks that ratio of 2:1 analysts being negative will create upgrades and the company will be able to beat estimates. Cramer thinks the analysts are holding back so they can cover other names.
Jim Cramer’s third pick as a defensive medical industrial complex stock that he thinks can’t get hurt by the economy is Baxter International (BAX), but he would only buy it if it pulls back right now. He likes this as a “best of breed” compared to a “worst of breed” stock like Boston Scientific (BSX). Hemophelia, dialysis, cancer treatments, immune disorders, and many other things. Cramer said that Boston Scientific (BSX) paid too much for Guidant and is having to spin off a good area of future operations just to pay for debt.
Source: 247WallSt.com
RELATED READING:
- Cramer Looking For the Next Dendreon
- Jim Cramer on Dendreon
- Cramer Calls Out His Next Biotech Picks
- Nastech Pharma: Cramer Thinks Biotech Zombie Worth Second Look
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Monday’s Top Biotech & Medical Stocks
by H.S. Ayoub
BioHealth Investor.com
Biotechnology
REXAHN PHARMACEUTICL [RXHN.OB] +20.00%
BIONOVO INC [BNVI.OB] +17.80%
BOSTON LIFE SCIENCES [BLSI] +14.84%
SEQUENOM INC [SQNM] +12.16%
CARDIUM THERAPEUTICS [CDTP.OB] +8.77%
Diagnostic Substances
EPICEPT CORPORATION [EPCT] +10.36%
SCOLR PHARMA INC [DDD] +4.07%
ICAGEN, INC. [ICGN] +3.92%
PALATIN TECH INC [PTN] +3.59%
SURMODICS INC [SRDX] +3.57%
Drug Delivery
QUIGLEY CORP THE [QGLY] +1.86%
NOVADEL PHARMA INC [NVD] +1.57%
K V PHARMA CL A [KV-A] +0.27%
Drug Manufacturers
ATHEROGENICS INC [AGIX] +8.77%
AVANIR PHARMACEUTICL [AVNR] +6.89%
PROVECTUS PHARMA [PVCT.OB] +6.71%
DUSA PHARM INC [DUSA] +5.83%
ACCESS PHARMACEUTICL [ACCP.OB] +4.60%
Drug Related Products
IMAGENETIX INC [IAGX.OB] +4.00%
ARGAN INC [AGAX.OB] +3.83%
NATROL INC [NTOL] +2.59%
MANNATECH INC [MTEX] +2.52%
XELR8 HOLDINGS, INC [BZI] +2.33%
Generic Drugs
CARACO PHARMA LABS [CPD] +0.07%
Medical Appliances & Equipment
SONIC INNOVATIONS [SNCI] +5.59%
RESTORE MEDICAL INC [REST] +5.51%
MEDICALCV INC [MCVI.OB] +5.00%
CHOLESTECH CORP [CTEC] +4.98%
GIVEN IMAGING LTD [GIVN] +4.52%
Medical Instruments & Supplies
ENPATH MED INC [NPTH] +27.58%
NEPHROS INC. [NEP] +11.33%
CRYOCOR, INC. [CRYO] +7.02%
NEUROMETRIX, INC. [NURO] +6.53%
UROPLASTY INC [UPI] +5.69%
Medical Laboratories & Research
SPHERIX INC [SPEX] +7.72%
BIO-IMAGING TECH [BITI] +3.15%
PSYCHEMEDICS NEW [PMD] +0.56%
BIO-REFERENCE LAB [BRLI] +0.30%
NATL DENTEX CP [NADX] +0.22%
- Friday’s Top Biotech and Medical Stocks
- Thursday’s Top Biotech and Medical Stocks
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Omrix’s Biosurgical Products
by Brian Orelli
Baby Biotechs
Now I’m no surgeon, but I can guess that during surgery, there’s a lot of blood (actually, come to think of it, that’s part of the reason that I’m not a MD). Generally speaking, bleeding isn’t a good thing; Omrix’s (OMRI) biosurgical products and pipeline are designed to stop the bleeding (herein referred to by it’s clinical name, hemostasis).
Now how do you promote hemostasis in surgery? Well, the same way you do if you cut yourself when you’re shaving:
1. If it’s a small cut, you let the proteins in the blood form a clot (scab). Essentially fibrinogen, a protein in the blood stream, combines with another protein in the blood stream, thrombin, to form a clot. Omrix’s Evicel (marketed as Quixil outside the U.S.) is essentially purified fibrinogen. Since it’s purified from human plasma, it contains naturally occurring proteins as part of its biological active component (BAC), which help form a clot that sticks to the wound better. Omrix is also in phase 3 trials for purified thrombin, the other component of the clot, which results in a much slower hemostasis (preferred in some types of surgery).
2. If the cut is a little bigger or won’t stop on its own, you put a bandage on it. Omrix has designed a biodegradable patch that contains purified fibrinogen. The patch, which is in phase 1 clinical trials, is designed for high bleeding situations, like the emergency room, where the high flow/pressure from a wound rips a fibrinogen induced clot right off.
From my reading, it looks like they don’t have a patent on fibrinogen. Although they may have a patent on their purification process. Since they’re in a highly competitive field, they need to give the doctors a reason to buy their brand over any others. Omrix’s main advantage is that they purify fibrinogen out of human plasma while other competitors purify it out of cows, potentially causing the immune system to have to work overtime to fight off the perceived foreign infection. They’ve also packaged the fibrinogen in an easy to use form that can be stored at 4 degrees Celsius (refrigerator) for extended periods of time resulting in reduced waste of the product.
Omrix’s other competitive advantage in that they are good at purifying proteins out of human plasma. This same type of purification is used to create their passive imunotherapy product line, which I will talk about next time.
Source: BabyBiotechs.com
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Weekly Top Biotech and Medical Business Articles
by H.S. Ayoub
BioHealth Investor.com
The following articles were the most popular at BioHealth Investor for the week of April 21 - April 27.
This list can also be found on the right navigation bar of the blog during the week.
4. Palomar Medical: To Dominate the Aesthetic Laser Market?
5. AlphaMD: An Investor’s Lens to the Medical World
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NFL Stars Back New Supplement Delivery System
by Sara Calabro
Med Tech Sentinel
HealthSport (HSPO.OB), an Amherst, NY-based company that makes an edible film strip delivery system for nutritional supplements, has raised $3 million in a private placement.
The money, part of which came from three National Football League stars turned investors — Bruce Smith and Jim Kelly, formerly of the Buffalo Bills, and Bernie Kosar, an ex-Cleveland Brown — will be used to commercialize the firm’s Enlyten SportStrips. The strips replace the electrolytes the body loses while exercising through buccal (cheek to gum) absorption. This mode of absorption differs from other electrolyte delivery predecessors because gastric absorption is bypassed and the electrolytes are directly absorbed into the body.
HealthSport says the SportStrips also help to avoid the over-hydration that can occur with excessive consumption of sports drinks.
Source: OneMedPlace.com
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Getting physicians to think seriously about radiation exposure
David E. Williams
Health Business Blog
I’ve mentioned a few times on this blog that I’m concerned about the levels of radiation patients are being exposed to as a result of medical imaging, especially CT. Radiologists and referring physicians haven’t taken the issue too seriously because:
- The scans are useful and, of course, well reimbursed
- They weren’t aware of the issue
- There’s generally no easy way to track how much radiation patients have been exposed to
I’ve reported on anecdotal evidence of radiation exposure in the past, and ways to reduce dosages by adjusting scanners. Now a study has reported overall information on exposure. The numbers are high: per capita exposure is up 6x since 1980, and it’s disproportionately due to CT.
Consciousness raising among physicians is a good first step, but patients need to keep track of their own exposure and work in conjunction with their physicians to balance risks and benefits. One thing that’s really unacceptable is having a scan repeated because a previous one is lost or inaccessible.
I’ve always thought one good use of a personal health record is to keep track of lifetime radiation exposure, even if the numbers are just estimates. (The real figures would be even better.) I haven’t seen this functionality yet, though maybe it exists somewhere.
Source: HealthBusinessBlog.com
RELATED READING:
- Three Biotech Drugs Have Potential to Treat Polonium-210 Radiation
- Hollis-Eden Anti-Radiation Government Contract Delayed Again
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New Eye Mask for Growing Blepharoplasty Market
by Sara Calabro
Med Tech Sentinel
BioElectronics Corporation (BIEL.PK), a Frederick, MD-based company that makes anti-inflammatory patches to accelerate healing after surgery, has come out with a new eye mask to hold in place its ActiPatch therapy on patients who have had eyelid surgery. The mask, made of a soft, breathable fabric, has a pocket on each side that holds a crescent shaped ActiPatch to assure proper placement over each eye. ActiPatch is a drug-free anti-inflammatory patch with an embedded battery operated microchip that delivers continuous pulsed therapy. It has been clinically proven to reduce swelling and bruising up to 50%.
Market potential for eyelid-surgery recovery devices is promising. Known as blepharoplasty, this kind of surgery is a cosmetic procedure that removes fat deposits, excess tissue, or muscle from the eyelids to improve the appearance of the eyes. More than 1.8 million surgical cosmetic procedures were performed in 2006, up 2 percent from 2005, according to the American Society of Plastic Surgeons. Blepharoplasty was the fourth-most common form of cosmetic surgery in 2006, with 233,000 procedures being performed.
Source: OneMedPlace.com
RELATED READING:
- Sights Set on Advancing Treatment for Retinal Disease
- eXegenics: An exciting new approach to macular degeneration
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IBD Weekly Top Ranked Medical Stocks
The following list represents the top ten medical stocks ranked according to Earnings Per Share and Relative Strength by Investor’s Business Daily (4/28/07)
scores out of 100 (last week’s rank, change in score):
1(2) Medtox Scientific (MTOX) EPS=99 RS=99(+2)
2(1) Rochester Medical (ROCM) EPS=98 RS=99
3(3) Cynosure (CYNO) EPS=96 RS=98(+1)
4(4) Wellcare (WCG) EPS=97 RS=95
5(5) American Orient Bioeng (AOB) EPS=95(-1) RS=93(-1)
6(-) Celgene (CELG) EPS=99 RS=87
7(-) Gilead (GILD) EPS=98 RS=88
8(7) Emdeon (HLTH) EPS=99 RS=87(-1)
9(6) Arrhythmia Research (HRT) EPS=94 RS=92(-2)
10(-) LHC Group (LHCG) EPS=98 RS=87
- Apr 21; IBD Weekly Top Ranked Medical Stocks
- Apr 14; IBD Weekly Top Ranked Medical Stocks
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