UM: Drug Industry

The New York Times reports on the challenges facing major pharmaceutical companies, such as Pfizer. This year, Pfizer’s patent on its “blockbuster drug” Lipitor will run out, and cheap generic replacements are expected to take over the market. Along with patent expirations, pharmaceutical companies must face an FDA more reluctant than ever to approve new drugs. The result: many companies are cutting research and development and focusing only on areas to maximize profit. The article quotes Erik Gordon, a clinical assistant professor at the University of Michigan business school who follows the pharmaceutical industry: “You don’t lay off R&D if it’s just a cycle. That kills progress.” [Source]