> Bird Flu Scam: Donald H. Rumsfeld - Former Chairman of Gilead Sciences
26 October 2005, 12:52
Gilead Sciences licenced the marketing of oseltamivr to Roche after lackluster sales. Once they realized the potential for the market from the H5N1 pandemic they sued Roche for termination of the agreement on the grounds that they were not effectively marketing Tamiflu. The truth is GS never really was satisfied with Roche’s strategies, but the timing is a little odd. Also, anyone having experience with Gilead will tell you that this is pretty typical of their operating style. Ironically, the other drug made by GlaxoSmithKline (Relenza) was licensed after poor sales and fatalities in users with asthma. Now GSK has mysteriously regained interest in this drug and is in arbitration.
It might seem that investors would be lining up at the trough to reap the profits with these drugs. There are at least 3 reasons why this is probably not the case. First, all the legal wranglings make investors nervous, both drugs are likely to be tied up in court for years. Second, the drugs don’t prevent influenza, they just modify the severity. Third, in the event of pandemic, it is likely that one or more of these drugs (there are others, such as a promising agent by Sankyo) will be mass produced off patent and no one will make anything anyway. Another point that is often missed is that influenza virus with resistance can be selected in people taking the drug. In this case, if resistant virus enter the infectious pool, these agents are going to be ineffective anyway.
As far as Rumsfeld, his 2004 financial disclosure indicates that he owned between 5 and 25 million dollars in equity in Gilead as of Dec 31, 2004; however, he has also sold holdings in the same range. Next year’s disclosure will show the value range of any remaining holdings in Gilead.
Gilead Sciences licenced the marketing of oseltamivr to Roche after lackluster sales. Once they realized the potential for the market from the H5N1 pandemic they sued Roche for termination of the agreement on the grounds that they were not effectively marketing Tamiflu. The truth is GS never really was satisfied with Roche’s strategies, but the timing is a little odd. Also, anyone having experience with Gilead will tell you that this is pretty typical of their operating style. Ironically, the other drug made by GlaxoSmithKline (Relenza) was licensed after poor sales and fatalities in users with asthma. Now GSK has mysteriously regained interest in this drug and is in arbitration.
It might seem that investors would be lining up at the trough to reap the profits with these drugs. There are at least 3 reasons why this is probably not the case. First, all the legal wranglings make investors nervous, both drugs are likely to be tied up in court for years. Second, the drugs don’t prevent influenza, they just modify the severity. Third, in the event of pandemic, it is likely that one or more of these drugs (there are others, such as a promising agent by Sankyo) will be mass produced off patent and no one will make anything anyway. Another point that is often missed is that influenza virus with resistance can be selected in people taking the drug. In this case, if resistant virus enter the infectious pool, these agents are going to be ineffective anyway.
As far as Rumsfeld, his 2004 financial disclosure indicates that he owned between 5 and 25 million dollars in equity in Gilead as of Dec 31, 2004; however, he has also sold holdings in the same range. Next year’s disclosure will show the value range of any remaining holdings in Gilead.