Is there any reason why Pfizer shares are down today? Just yesterday, shares were trading at ~ $17.30. Today, with the DJIA up by 0.7%, Pfizer is down by nearly 1%. A clue to this sell-off MIGHT be due to the anticipation by investors of increasing pressure to change the way drugs are prescribed. This could also trigger several lawsuits down the road.
The multi-billion dollar drug company, Johnson & Johnson (J&J), has come under fire for allegedly violating the rules in their marketing of Risperdal, an antipsychotic drug. Back in 1999, the Food and Drug Administration (FDA) told J&J that their marketing materials for geriatric patients overstated Risperdals benefits and minimized risks, according to Bloomberg.com. In 2000, an internal business plan strategized a way to increase Risperdals market share by marketing the benefits for elderly dementia, an unapproved use.
When residents at the Kern Valley Nursing Home complained or annoyed nursing director Gwen Hughes, prosecutors say she chemically restrained them with powerful anti-psychotic drugs. Her methods were so severe, three residents died. A Food and Drug Administration official estimates that unnecessary anti-psychotics kill 15,000 nursing home patients each year.
“It is a worrisome trend, partly because very little is known about the short-term, let alone the long-term, safety of these drugs in this age group,” said study author Dr. Mark Olfson, a professor of clinical psychiatry at Columbia University in New York City.
Many states have sued over the cost of atypical antipsychotic drugs, especially the cost of treating the diabetes and metabolic disorders they cause, which has decimated Medicaid budgets. Yet now the FDA gives pharma the Christmas present of approving Seroquel and Zyprexa for children and hence, Medicaid reimbursement even as its own Division of Pharmacovigilance (DPV) reported a “a direct association between adverse metabolic effects of treatment with atypical antipsychotics” and children!