Patricia Danzon - Faculty Research in Knowledge@Wharton

Take Two Advil and ... What Ills Can the Pfizer-Wyeth Merger Cure?

Wed, 04 Feb 2009 17:07:39 EST

When the giant pharmaceutical company Pfizer announced on January 26 that it was acquiring Wyeth for $68 billion, analysts started questioning what benefits the deal would bring and for whom. Pfizer executives suggest the acquisition makes strategic sense by expanding the company into a range of new areas, and by helping make up for an expected loss of more than $12 billion in annual revenues once its Lipitor patent expires in 2011. But Wyeth also brings some liabilities -- notably, continuing lawsuits over its hormone replacement drugs and fen-phen diet pill. Knowledge@Wharton asked Wharton health care professor Patricia Danzon and marketing professor Jagmohan Raju to offer their views on the pros and cons of the deal.

Avoiding the Tough Issues: The Candidates on Health Care and Entitlements

Wed, 15 Oct 2008 16:48:07 EST

"We were so concerned about the $700 billion in the bailout bill, but nobody is talking seriously about the $12 trillion we need to make Social Security whole and the $65 trillion we need to make Medicare whole," says Wharton professor Olivia Mitchell, referring to issues being debated in the U.S. presidential campaign. Meanwhile, the candidates promise to expand health care coverage without offering details about how they can finance their proposals.

Connecting the Dots between Innovation and Leadership

Wed, 04 Oct 2006 14:39:32 EST

At a recent Wharton roundtable discussion on leadership and innovation, panelists were asked how the two are linked, and what single factor they think is most critical to innovation in their industry. The answers (in a word): culture, passion, marketing, among others. The event, during which panelists also reflected on their career choices, was part of Wharton's 125^th anniversary celebration.

Novartis's Alex Gorsky: Ensuring that Patients Get Access to the Medicines They Need

Wed, 27 Sep 2006 18:51:22 EST

Alex Gorsky was named head of Pharma North America and CEO of Novartis Pharmaceuticals Corp., the U.S. affiliate of Swiss drug giant Novartis, in the fall of 2005. Since joining the company in 2004 as chief operating officer and head of general medicines, Gorsky has overseen the continued growth of Novartis's industry-leading cardiovascular franchise, notably the blockbuster drugs Diovan and Lotrel. The company sells a variety of products, including those that treat endocrine and respiratory disease, gastrointestinal illnesses, cancer and blood disorders and bone and joint conditions, among others. Prior to joining Novartis, Gorsky was company group chairman for Johnson & Johnson's pharmaceutical business in Europe, the Middle East and Africa. Before that, he spent 15 years in sales, marketing and management at Janssen Pharmaceutica. Gorsky was recently on campus to take part in a Wharton business roundtable on leadership and agreed to talk with Knowledge@Wharton about trends in the pharmaceutical industry.

After Decades of Malaise, the Vaccine Industry Is Getting an Injection

Wed, 02 Nov 2005 16:31:57 EST

After decades of decline, the vaccine industry is gaining new interest from drug makers and the federal government in response to last year's flu-shot shortage, concerns about an avian flu pandemic, and the development of potential vaccines targeted at new markets, including cancer. Still, vaccines remain a small piece of the overall drug market -- less than 3% of the global pharmaceutical industry -- and vaccine manufacturers continue to face liability problems and low payments from public-health customers, according to Wharton faculty and other experts. In the face of these obstacles, what will it take to inject some life into the ailing industry?

Death of a Drug: The Aftermath of Merck's Recall

Wed, 20 Oct 2004 15:40:04 EST

Wharton management professor Michael Useem, director of the school's Center for Leadership and Change Management, notes that one of the key mantras in corporate crisis management is: "Hide nothing, tell all." Less than a week after Merck & Co.'s voluntary withdrawal of its blockbuster arthritis pain medication Vioxx, following an extended clinical trial that linked the drug to heart attacks and strokes, the jury is still out on whether the pharmaceutical giant followed this cardinal rule. Wharton professors debate Merck's response to the crisis and the impact of the recall.

Can Aventis Fight Off Its Hostile Suitor?

Wed, 25 Feb 2004 15:03:40 EST

Sanofi-Synthelabo’s hostile $58 billion bid to acquire its French pharmaceutical rival Aventis has roused European markets and French pride. Even though the merger could cost thousands of French workers their jobs, the deal appears to have the blessing of government officials who hope to breed – or at least preserve – a national champion in the high-profit pharmaceuticals sector. Aventis, however, is fighting back, hoping that a White Knight will come to its rescue.

Insurance Industry Conference Looks at Terrorism, Drug Coverage, Malpractice Insurance and M&As

Wed, 28 Jan 2004 13:48:21 EST

The role of government in supplementing the private insurance industry and the industry’s response to terrorism were recurrent themes at the seventh annual conference of Wharton’s Financial Institutions Center and the Brookings Institution held earlier this month in Washington, D.C. The conference, titled “Public Policy Issues Confronting the Insurance Industry,” included discussion of such topics as mergers and acquisitions in the European insurance industry, insurers’ and legislators' response to the Sept. 11, 2001, terrorist attacks, Medicare prescription drug benefits and medical malpractice insurance.

Analyzing Brand-name and Generic Drug Costs in the U.S. and Eight Other Countries

Wed, 19 Nov 2003 14:50:39 EST

A new Wharton study comparing average prices for pharmaceuticals in nine countries – the United States, Canada, Chile, France, Germany, Italy, Japan, Mexico and the United Kingdom – shows that average prices are highest in Japan, while prices in other countries are between 6% and 33% lower than prices in the U.S.

Canada

’s prices are the lowest. In their article, entitled “Prices and Availability of Pharmaceuticals: Evidence from Nine Countries,” Patricia Danzon, professor of health care systems, and doctoral student Michael Furukawa explain the implications of their research for drug manufacturers, consumers and policy makers.

Selling Life-Saving Drugs to Poorer Countries: At What Cost?

Wed, 06 Nov 2002 00:00:00 EST

The African AIDS pandemic has drawn international aid organizations, governments and pharmaceutical companies into a global debate on whether rich countries should pay more for drugs than less developed nations. This system of differential pricing makes sense on social-justice and economic grounds, but it is difficult to administer in the real world, according to experts who recently participated in a Wharton conference entitled �Pharmaceutical Innovation in the Global Economy.�

Bristol-Myers Squibb Illustrates Woes of Ailing Pharmaceutical Industry

Wed, 17 Jul 2002 00:00:00 EST

The once-mighty pharmaceutical industry, for years the nation�s most profitable, has begun to show some cracks, as lucrative drug pipelines dry up and employers and government balk at paying its patent-protected prices. But no major U.S. drug maker seems to be facing more problems than Bristol-Myers Squibb. Once a solid performer with a strong franchise in the highly profitable cancer market, the company has recently suffered a series of setbacks in its attempts to boost declining revenues.

The Benefits Are Mutual in New Wave of Biotech/Pharma Alliances

Wed, 13 Mar 2002 00:00:00 EST

The spat that erupted between pharma giant Bristol-Myers Squibb and biotech firm ImClone Systems over their partnership to develop a new cancer drug brought attention to the increasing number of alliances between discovery research firms and big drug makers. What is becoming clear is how beneficial partnerships can be when the goal is to get new drugs to market as fast as possible.

In Battle to Lower Employers� Health Care Costs, Will Employees Become �General Contractors�?

Wed, 13 Feb 2002 00:00:00 EST

Following the backlash against managed care and faced with a sharp rise in health care costs this year, employers are searching for a new cure to spiraling health care premiums. Many are considering a model based on self-directed care, in which employers set aside a certain amount of money for their workers� health coverage, then let each employee have a say in how best to spend it. Wharton faculty discuss the pros and cons of such an approach.

What�s Behind U.S. Drug Companies� Response to the AIDS Crisis Abroad?

Wed, 11 Apr 2001 00:00:00 EST

As the magnitude of the AIDS crisis abroad becomes tragically clearer, U.S. pharmaceutical companies have come forward with offers of key drugs to poor countries at greatly discounted prices. What lies behind these offers? And what do they mean for America�s system of developing and marketing new drugs?

Decoding the Human Genome: How Will it Impact Business?

Wed, 05 Jul 2000 14:31:30 EST

Two teams of scientists�one consisting of university researchers at the Human Genome Project and another of scientists from Celera Genomics Group, a private biotech company�announced last week that they have completed an initial sequencing of the human genome�the genetic blueprint for human beings. Announcing this breakthrough, U.S. President Bill Clinton and British Prime Minister Tony Blair said this development would lead to a new era of molecular medicine. As scientists continue to unravel the mysteries of the genetic code, what will be the business implications of their research? How will new findings affect the pharmaceutical and insurance industries? Knowledge@Wharton discussed these questions with Patricia M. Danzon and Mark V. Pauly, professors in Wharton�s health care systems department.

Drug Prices: Let the Competition Begin

Wed, 26 Apr 2000 13:34:06 EST

Concern for the plight of senior citizens unable to cover the costs of necessary drugs has recently led to a number of proposals aimed at controlling drug prices. Wharton professor Patricia Danzon argues that price controls not only don�t work, but they distract attention away from a solution that would allow senior citizens to share in the benefits of competition.

Will the Glaxo-SmithKline Merger Be Good Therapy?

Thu, 20 Jan 2000 16:54:52 EST

The proposed acquisition of SmithKline Beecham by Glaxo Wellcome - in a stock swap valued at $75.7 billion � may be creating the world�s largest pharmaceuticals company, but the question remains: Is it worth the effort? Wall Street in general was clearly not enthusiastic about the deal. On Tuesday, January 18, the first business day after the announcement of the merger on Monday, both company stocks took a beating in London and the U.S. Wharton health care systems professor Patricia Danzon shares Wall Street�s lack of enthusiasm for the proposed new company. "The basic business of the drug industry is developing drugs and getting them to consumers and physicians," says Danzon, who has done extensive studies on the pharmaceutical industry. "Maybe a bigger company can do it more efficiently and faster, but whether that is a winning strategy remains to be demonstrated."

Do Drug Companies Make Seniors Overpay?

Tue, 08 Jun 1999 21:16:57 EST

Several recent studies have examined whether pharmaceutical companies are taking advantage of older Americans by making them pay high drug prices. The reason, it is often argued, is that drug firms favor customers such as large insurance companies and HMOs, while gouging individual customers, many of whom are illness-prone elderly. But are these views valid? Not really, argues Wharton's Patricia M. Danzon as she challenges the findings of two recent studies.