Merck Move Shows Industry Adrift

Stock quotes in this article: MRK , PFE , SGP , LLY , AZN , GSK  

Call for Change

Sharav, for one, is sickened by those sales.

"Suddenly, half the nation is mentally ill," she says. "That's nonsense."

Frustrated by the industry's power -- and inspired by the scrutiny overseas -- Sharav is now in the process of organizing an unprecedented conference that, she hopes, will ultimately convince national leaders of the need for sweeping changes. Already, Sharav has lined up an impressive roster of speakers who are eager to discuss ways to overcome the powerful influence of the pharmaceutical companies. She says that several noted authors and a slew of big-name medical researchers, "the whole Harvard crew," have agreed to participate. So has the insider from the U.S. Food and Drug Administration who exposed the agency's mishandling of Vioxx, she says, along with whistleblowers at companies like Pfizer and Merck.

Of course, Sharav realizes, the conference must secure financing outside the cash-rich drug industry it is attempting to expose.

"Nobody could get a roster like this," Sharav said. "But there's a little catch: How do we get sponsors? It is so difficult."

Still, Cohan points out that the drug companies face difficulties of their own, despite -- and perhaps even because of -- the power that has helped them out in the past. Even after exercising all of their influence, he notes, the companies still need a key ingredient for success.

"The whole industry has fallen down on drug development," he says. "And no amount of influence -- or even marketing -- can make up for a dry hole in the pipeline."

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