Marching to Gilead

 

How to make a mint off a pandemic

The media has mostly focused on individuals who have taken advantage of the market for now-scarce medical and hygiene supplies to hoard masks and hand sanitizer and resell them at higher prices. But the largest voices in the health care industry stand to gain from billions of dollars in emergency spending on the pandemic, as do the bankers and investors who invest in health care companies.

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In recent weeks, investment bankers have pressed health care companies on the front lines of fighting the novel coronavirus, including drug firms developing experimental treatments and medical supply firms, to consider ways that they can profit from the crisis.

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In some cases, bankers received sharp rebukes from health care executives; in others, executives joked about using the attention on Covid-19 to dodge public pressure on the opioid crisis.

Gilead Sciences, the company producing remdesivir, the most promising drug to treat Covid-19 symptoms, is one such firm facing investor pressure.

Remdesivir is an antiviral that began development as a treatment for dengue, West Nile virus, and Zika, as well as MERS and SARS. The World Health Organization has said there is “only one drug right now that we think may have real efficacy in treating coronavirus symptoms” — namely, remdesivir.

The drug, though developed in partnership with the University of Alabama through a grant from the federal government’s National Institutes of Health, is patented by Gilead Sciences, a major pharmaceutical company based in California.

  The Intercept

Over the years there have been numerous drugs and other invetions either funded by the government or actually developed by the government and given to private companies to manufacture. They profit. We pay.

The firm has faced sharp criticism in the past for its pricing practices. It previously charged $84,000 for a yearlong supply of its hepatitis C treatment, which was also developed with government research support. Remdesivir is estimated to produce a one-time revenue of $2.5 billion.

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Johanna Mercier, executive vice president of Gilead, noted that the company is currently donating products and “manufacturing at risk and increasing our capacity” to do its best to find a solution to the pandemic. The company at the moment is focused, she said, primarily on “patient access” and “government access” for remdesivir.

“Commercial opportunity,” Mercier added, “might come if this becomes a seasonal disease or stockpiling comes into play, but that’s much later down the line.”

Sure. Is Gilead a corporation? Does it have a board of directors?

Steve Collis, president and chief executive of AmerisourceBergen, noted that his company has been actively involved in efforts to push back against political demands to limit the price of pharmaceutical products.

Collis said that he was recently at a dinner with other pharmaceutical firms involved with developing “vaccines for the coronavirus” and was reminded that the U.S. firms, operating under limited drug price intervention, were among the industry leaders — a claim that has been disputed by experts who note that lack of regulation in the drug industry has led to few investments in viral treatments, which are seen as less lucrative. Leading firms developing a vaccine for Covid-19 are based in Germany, China, and Japan, countries with high levels of government influence in the pharmaceutical industry.

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“We can’t say too much,” Collis responded. But the executive hinted that his company is using its crucial role in responding to the pandemic crisis as leverage in [opioid lawsuits] settlement negotiations. “I would say that this crisis, the coronavirus crisis, actually highlights a lot of what we’ve been saying, how important it is for us to be very strong financial companies and to have strong cash flow ability to invest in our business and to continue to grow our business and our relationship with our customers,” Collis said.

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MARKET PRESSURE has encouraged large health care firms to spend billions of dollars on stock buybacks and lobbying, rather than research and development.

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In Spain, the government seized control of private health care providers, including privately run hospitals, to manage the demand for treatment for patients with Covid-19.

But pharmaceutical interests in the U.S. have a large degree of political power. Health and Human Services Secretary Alex Azar previously served as president of the U.S. division of drug giant Eli Lilly and on the board of the Biotechnology Innovation Organization, a drug lobby group.

During a congressional hearing last month, Azar rejected the notion that any vaccine or treatment for Covid-19 should be set at an affordable price. “We would want to ensure that we work to make it affordable, but we can’t control that price because we need the private sector to invest,” said Azar. “The priority is to get vaccines and therapeutics. Price controls won’t get us there.”

Because of human scum like him and other corporate and finance industry assholes.

The initial $8.3 billion coronavirus spending bill passed in early March to provide financial support for research into vaccines and other drug treatments contained a provision that prevents the government from delaying the introduction of any new pharmaceutical to address the crisis over affordability concerns. The legislative text was shaped, according to reports, by industry lobbyists.

Always is.

As The Intercept previously reported, Joe Grogan, a key White House domestic policy adviser now serving on Donald Trump’s Coronavirus Task Force, previously served as a lobbyist for Gilead Sciences.

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Drug companies often eschew vaccine development because of the limited profit potential for a one-time treatment. Testing kit companies and other medical supply firms have few market incentives for domestic production, especially scaling up an entire factory for short-term use.

Free market capitalism at its finest. This is why we need governments.

Last Friday, [Rep. Andy Levin, D-Mich.] circulated a letter signed by other House Democrats that called for the government to take charge in producing ventilators, N95 respirators, and other critical supplies facing shortages.

I bet it got exactly zero Republican signatures.

The once inconceivable policy was endorsed on Wednesday when Trump unveiled a plan to invoke the Defense Production Act to compel private firms to produce needed supplies during the crisis. The law, notably, allows the president to set a price ceiling for critical goods used in an emergency.

He essentially said he COULD do that, and that he didn't think it was necessary.

...but hey, do what you want...you will anyway.

Trump's HHS Secretary was a Big Pharma lobbyist

So, naturally, he sees the coronavirus pandemic as a money-maker.

ALEX AZAR, the Secretary of Health and Human Services, admitted Wednesday that a vaccine for the coronavirus might not be affordable for all Americans. “We can’t control that price,” Azar told Rep. Jan Schakowsky, D-Ill., during a congressional hearing about the virus, which has been spreading throughout the world and is widely expected to become a serious public health issue in the United States.

After a wave of criticism from Democrats, Azar walked the comment back the next day, saying that he would ensure public access to a vaccine for the virus known as Covid-19 if one should be developed. But Azar, who served as the top lobbyist for Eli Lilly before becoming president of the drug company’s U.S. operations in 2012 and the secretary of Health and Human Services in 2018, knows of what he unthinkingly speaks. [...] And to the extent that Azar and the other businessmen who make up the majority of the president’s task force on the coronavirus have any experience with pharmaceuticals, one of the most profitable sectors of the economy, it’s been making money off the system that keeps them out of reach [for America's poor].

In the case of Azar, who earned nearly $2 million during his last year at Lilly, that profit came at the expense of the people who needed the drugs, according to a lawsuit filed in 2017. While Azar was leading the pharmaceutical giant, the cost of its drugs went up significantly. In particular, insulin sold by the company more than doubled in price. According to the suit, which also names Novo Nordisk and Sanofi, Eli Lilly engaged in a scheme to artificially inflate the price of its drug, leaving some diabetic people unable to pay the cost and forced to use expired insulin or none at all.

For another task force member, the profits could come from the coronavirus itself. Joseph Grogan was a lobbyist for the pharmaceutical giant Gilead Sciences before he joined the Trump administration as director of the Domestic Policy Council and led the Drug Pricing and Innovation Work Group. On Wednesday, after Gilead announced that it would be starting two clinical trials of an antiviral drug that could be used to treat the virus, the company’s stock price surged.

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President Trump has fired many of the people who actually know how to coordinate government responses to epidemics. As Laurie Garrett reported in January, the president shut down the National Security Council’s global health security unit and cut $15 billion in national health spending, including funding for the management of infectious global diseases at the CDC, DHS, and HHS. At the CDC, the funding cuts to the global health section were so severe, Garrett wrote, that “the number of countries it was working in was reduced from 49 to merely 10.”

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Although Grogan and his friends may have a lot to gain from his participation on the task force, it is not clear what expertise he and most of the others serving on the group bring to it. Of the task force’s 16 members — 17, if you include Vice President Mike Pence, who is heading the effort — only four have any training in science or medicine.

  The Intercept

Well, when you're goal is to make money for yourself and your friends, science and medicine aren't particularly useful training.

The others mostly hail from the business world, including Treasury Secretary Steven Mnuchin, an investment banker who was sued for asset stripping; Ken Cuccinelli, a lawyer and self-described “opponent of homosexuality” now serving as acting deputy secretary of homeland security; and Christopher Liddell, a former executive at Microsoft and General Motors, who worked with Jared Kushner on the modernization of federal IT systems before directing the country’s response to what may be the biggest public health crisis in over a century.

I'm sure they'll do a heck-of-a job.

Vice President Pence also named Larry Kudlow to the task force on Thursday. Kudlow, a top economic advisor to Trump who used to work for Bear Stearns, went on Fox Business to reassure the American public that reports of increasing coronavirus infections around the world don’t necessarily mean “that this thing is going to skyrocket in North America.” Kudlow then encouraged everyone to keep investing, saying, “Stocks look pretty cheap to me.”

Jesus wept.

On Thursday, Deborah Birx, a physician who has served as the U.S. Global AIDS Coordinator since 2014, was named as the White House coronavirus response coordinator, and Surgeon General Jerome Adams was added to the task force. Their appointments came after Bernie Sanders slammed Trump for putting “political cronies, not scientists” in charge of the government response to the virus.

Do you suppose they'll get a say in anything?