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DBL%20Hendrix%20small.png College chemistry, 1983

Derek Lowe The 2002 Model

Dbl%20new%20portrait%20B%26W.png After 10 years of blogging. . .

Derek Lowe, an Arkansan by birth, got his BA from Hendrix College and his PhD in organic chemistry from Duke before spending time in Germany on a Humboldt Fellowship on his post-doc. He's worked for several major pharmaceutical companies since 1989 on drug discovery projects against schizophrenia, Alzheimer's, diabetes, osteoporosis and other diseases. To contact Derek email him directly: derekb.lowe@gmail.com Twitter: Dereklowe

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In the Pipeline: Don't miss Derek Lowe's excellent commentary on drug discovery and the pharma industry in general at In the Pipeline

In the Pipeline

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November 1, 2006

You Can't Make Money If You Don't Get Paid

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Posted by Derek

The German government has handed down some interesting pharmaceutical decisions recently. Although Sanofi-Aventis's Accomplia (rimonabant) is available there (in fact, that's probably the largest market it's shown up in so far), the German regulators have decided that state health care plans are not going to reimburse for it. They've put it in the "lifestyle" drug category, which they don't cover. This appears to be a cost-cutting move, and there's a 60-day window in which it can be changed.

S-A had better hope that HMOs here don't follow suit. Of course, for this to be an issue, the drug would actually have to be approved by the FDA here, and the company still has no details to offer about when they might expect that. Their quarterly report states that they've answered the FDA's concerns, which isn't much of an update, but goes no further, as far as I can see.

Meanwhile, Pfizer's inhaled insulin Exubera has also been denied reimbursement in Germany, which follows on a similar British decision earlier. I expressed doubts about the product here a while ago (I wasn't alone), and now the doubters are getting louder. Exubera hasn't been launched in the US, either, despite being approved early this year, which isn't helping sooth Pfizer's hardy investors, either. . .

Presumably both these products will debut here in 2007, and we can all see how they do in the most lucrative pharmaceutical market in the world. If anyone is thinking of making a big upside investment decision based on these compounds, though, I think they'd be well advised to sit on their money for a while.

Comments (3) + TrackBacks (0) | Category: Business and Markets | Diabetes and Obesity


COMMENTS

1. Chrispy on November 1, 2006 4:25 PM writes...


So how's Accomplia working in Germany? Are people losing weight aqnd abandoning their addictions?

It seems like if it worked then it would be cheaper than dealing with addicted and obese patients. Of course, if it doesn't work then it is expensive at any price...

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2. Nate on November 1, 2006 5:40 PM writes...

Actually, Exubra has been launched in the US. We have had it in our pharmacy for a couple of months (maybe since late september). While we have it, I have yet to dispense it. I am a little suprised, I figured it would be a sneaky way to get injection scared type II's on an insulin therapy

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3. coracle on November 2, 2006 10:00 AM writes...

The decision on exubera has fairly recently changed in the UK, now available on the NHS for 'needle-phobics'. This BBC story has more details.

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