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OccupyPharma and other cures

We are also the 99% Meeeeneeeemeeep!

Reader bemused_leftist pointed me to a defense of the control network that I posted about yesterday from a guy who works in one of those companies on the network.  Here are the money quotes from the defense from Andrew Drucker at Made from Truth and Lies: I’m annoyed at the sensationalist financial reporting:

I happen to work for one of those 50 companies, which gives me a little bit of perspective (even if I am very far down its hierarchy). And I can tell you that most of those companies aren’t in that position because of a conspiracy of control – but because you have a pension. AXA, Legal and General, Aviva, Sun Life, and many many more of the companies on there are there because ordinary people put their cash into life insurance or pensions, and that cash is then invested in the stock market so that it can make payouts in the event of either problems (for the insurance) or retirement (for the pensions). And because many of these companies provide pensions either for millions of people, thousands of large companies, or both, they are managing massive piles of cash.

Which doesn’t mean that they’re actually running the companies they own lots of shares in. Most pensions/insurance/life companies are terrified of telling the companies they own shares in how to behave – they want to own shares in something successful so that they make profits, but they don’t have the time to micro-manage them, and they really don’t want to get involved in anything that smells even slightly political.

This actually leads, sometimes, to insufficient control over the directors of large corporations – because if you’re in the FTSE 100, you’re going to find your shares are owned by a lot of investment companies, who just want you to churn out profits, without paying too much attention to, say, board-level renumeration. So you can get away with paying your high level people a lot without a share-holder rebellion. If they were owned by a few ordinary people then they’d find themselves subjected to a lot more scrutiny, and a lot more control.

Well, Andrew, speaking as a former employee of one of those companies that the network node companies are terrified to micro manage, I call bullshit.  The pharma industry has been micromanaged to death by the node network guys.  When they’re not totally onboard some gutwrenching merger or acquisition, they’re telling the CEO to cut more from research.  Yeah, that’s the ticket to a successful, money making pharmaceutical company!  Dismantle the research apparatus.  Do it quickly, like before the next quarter.  Andrew, please do not tell anyone in the pharma industry who has either lost their job or about to lose their job (those are the only two categories at the present time), that the pension fund managers and big banks and other financial sector players have not had a profound effect on the way pharmaceuticals run their businesses.  We have been at the Town Hall meetings when the head honchos have told us directly and to our faces that you guys have been leaning on them- heavily.  It’s not bad enough that pharma has been shooting it’s own image in the foot with lobbyists and high drug prices, that you financial types skim from, or that it is constantly under attack from the left for being less than perfect (as if there is such a thing as a perfect drug, there isn’t).  No, what really pisses the labrats off is yet another boneheaded restructuring plan brought on by some nitwit Wharton School graduate who just has to take the latest management trend out for a spin to teach those damn researchers that research costs money, by golly!  How dare they consume so many pipettes, order so many tests and break so many instruments.  Don’t they know that those costs go into the debit column??  Well, they’re going to have to learn a thing or two or we’re not going to make our quarterly estimate.

It’s been done to every one of the companies I’ve ever heard of.  If the companies aren’t shedding research jobs to hire cheap contractors, they’re shedding research jobs to just get out of unprofitable therapeutic areas.  Well, who needs antibiotics anyway?  The latest news is that Abbott is spinning off the pharma unit altogether.  Oh sure, they’ve got a blockbuster that will keep them afloat for awhile but most likely, they’ll get swallowed up by a bigger shark and where will the cost savings come from?  That’s right, the research unit.  These days, companies buy products, not the group that actually discovered the product.

More joy is on the horizon for 380 Amgen employees who learned just last week that they are going to lose their jobs.  (pharmas are either tricklers or gushers when it comes to cutting jobs.  Amgen is a trickler; Pfizer is a gusher.  But it’s all the same in the end)  Really, guys, do the rest of us unemployed labrats need more competition?  And Merck, the beacon of stability, that has been holding off the financial analysts bravely for the past couple of years while the rest of the pharmas have done what their masters ordered, seems to have finally thrown in the towel.  They are going to be making an announcement next week about reorganizing. Derek Lowe’s blog, In the Pipeline, has some of the details and this complaint from Derek:

And on a similar topic, here’s a post from John LaMattina asking what many people have at one point or another: how come Wall Street analysts get so much influence over how much a drug organization spends on R&D? His examples are Merck, Lilly, and Amgen, and his take is:

“Now, I am all for monitoring R&D budgets to maximize the returns from these investments. And I am all for accountability – asking the R&D organization to deliver new candidates to the pipeline, having formal goals with rigorous deadlines, and for running clinical trials as expeditiously as possible while keeping a close eye on costs. But for Wall Street to reward a company for lowering R&D spending and attack those that want to commit to R&D is absurd. Like it or not, R&D IS the engine that powers a pharmaceutical company. It is also a high-risk endeavor. Furthermore, given all of the hurdles that now exist especially with regard to ensuring safety and having sufficient novelty to justify pricing, R&D is more expensive than ever. But, if you want to succeed, you have to invest – substantially. There are no short cuts.”

Wall Street’s answer, which may be hard to refute, is that if you want the access to capital that the stock market provides, then you have to accept the backseat driving as part of the deal. But do we get the same degree of it as other industries, or more?

That is the rule, Andrew, not the exception.

Now, I know that a lot of people at OccupyWallStreet don’t much care for pharma.   I know it takes a lot of milk of human kindness to love us but try, people, try.  It’s really important that you try to understand this problem.  Because if there was ever an industry that needed to be liberated from Wall Street it would have to be pharmaceutical research.  Wall Street and pharmaceutical research are about as incompatible as two entities can get.  Wall Street is all about short term profits and paying the shareholder.  Pharma research “used” to be about developing cures through science and long term committments.  The Wall Street crew does not care if there is a research industry left in this country.  It is not interested in your excuses that research takes time and human organisms and their cells are very complex.  They are deaf to the pleas that we are being squeezed by the FDA to make our imperfect drugs perfect and need to carry out more and more expensive clinical trials that will cause some drugs to fail to advance.  All Wall Street cares about is whether the quarterly estimate will be hit or not.  And the MBAs who populate pharma’s corporate office suites are there to see that it is done.  That’s why they make the big bucks.

This is an opportunity, occupywallst, to take pharma back and make it work for the public.  Don’t pass this one up.

Moving on to cures of a different kind:

The people at ApartmentTherapy are starting the 20/20 Home Cure on Monday.  It’s 20 minutes a day for 20 days.  Each day features a different project to get your house back in shape.  You can sign up at ApartmentTherapy on Monday.  Here’s Maxwell’s introduction video to explain what it’s about.  If you are a bit more ambitious and need more structure in your home clean up routine, check out the 20 minutes for 30 days plan.  You can add these tasks to your favorite productivity tool (I’m testing out Home Routines for the iPad) and they can come up on a regular basis.  I have heard that if you do something for 21 days, you’re more likely to make it a lasting habit.  So, if you’re like me and you spend  a bit too much time hunched behind your computer, join ApartmentTherapy on Monday for the Home Cure.

Apartmenttherapy is just a great site to add to your daily routine anyway.  If you’re looking for a way to change your home environment in some way, they have the answers, ideas, DIY projects and plenty of design inspirations from people on budgets, updated frequently throughout the day.  They have several sibling sites too that cover everything from renesting, food, and parenting to planning your next high tech gadgets.  Another blog of visual relief for the home is Design*Sponge by Grace Bonney and her crew.  Highly recommended.

On the menu for a cool fall evening, Roast Pumpkin with Cheese Fondue.  I made this last year.  Dead simple to assemble, delicious.  Should be served in front of a toasty fire with salad and a crisp white wine.  Yummm.

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