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Healthy Skepticism Library item: 7127

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

 

Publication type: news

Shaw R.
Pharmaceutical Losses: Thinking Through Pfizer and Merck
Yahoo Finance 2006 Dec 4
http://biz.yahoo.com/seekingalpha/061205/21741_id.html?.v=1


Abstract:

Richard Shaw submits: In light of yesterday’s tremendous announcement and loss by Pfizer, we are now thinking through Pfizer (NYSE: PFE – News) and Merck (NYSE: MRK – News).

As a backdrop to this thinking about operations and sales, we’ve put together a chart of some data that may be helpful to us, and perhaps to you.

While do not own either PFE or MRK, we have owned them several times in the past and probably will trade them again in the future.

Our only current pharmaceutical position is Johnson & Johnson (NYSE: JNJ – News).

 

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Cases of wilful misrepresentation are a rarity in medical advertising. For every advertisement in which nonexistent doctors are called on to testify or deliberately irrelevant references are bunched up in [fine print], you will find a hundred or more whose greatest offenses are unquestioning enthusiasm and the skill to communicate it.

The best defence the physician can muster against this kind of advertising is a healthy skepticism and a willingness, not always apparent in the past, to do his homework. He must cultivate a flair for spotting the logical loophole, the invalid clinical trial, the unreliable or meaningless testimonial, the unneeded improvement and the unlikely claim. Above all, he must develop greater resistance to the lure of the fashionable and the new.
- Pierre R. Garai (advertising executive) 1963