Pharma Winter Wonderland
I am sure that most of you have heard by now that it takes about $1.0 billion to shepherd a new drug from discovery through commercialization. It is a nice round number but methinks that “something is rotten in pharma land”. The massive pharma layoffs in 2007 were justified because of nearing patent expiry, encroachment by generic manufacturers, over zealous FDA scrutiny and failing stock prices. To that end, how do you explain this little tidbit about Wyeth that my colleague Ed Silverman at Pharmalot reported on late last week?
As you may know, about three months ago Wyeth’s CEO Bob Essner announced his pending retirement as from the struggling drug maker. It turns out, that Bob will remain chairman through December 31, 2008 and will receive the same $1.73 million in 2008 that he received this year as company CEO.As Ed reported “Bob will also be entitled to a bonus based on his 2008 salary that is “consistent with (his) position,” although his duties are not defined—nor his title. Presumably, Bob is now a consultant.” I along with Ed will look forward to hearing his ideas and what he will be doing for Wyeth over the next 12 months. Maybe he and Bernie Poussot, Wyeth’s new CEO (who will be making a measly $1.5 million this year) can have lunch from time to time to discuss strategy.
Maybe this is why it takes a billion to commercialize a new drug?
Until Next Time
Good Luck and Good Job Hunting (try Wyeth, they apparently have money to burn)
Well said, this kind of accepted corruption is choking the world, especially the developing countries. Thanks for posting.