Economic Recovery Inspires Innovation and Frustration

As innovation revives, companies struggle to make it boost profitable growth. GE, Tata Motors, Marvel, and Virgin Galactic offer diverse models

BusinessWeek, November 16, 2009 — While they continue to slog through the longest economic downturn in decades, companies are no longer making cost-cutting their primary focus. Innovation is now front and center on the corporate agenda, according to a global survey we recently conducted with 65 senior executives from diverse industries. Executives are adding more breakthrough innovations and business model changes to their portfolio to fuel the growth engine for the recovery.

Yet our survey reveals that companies by and large are having trouble making innovation efforts work

Pfizer Pays $2.3 Billion to Settle Marketing Case

The settlement is the largest fine ever levied for fraud in the Medicare and Medicaid programs

New York Times, September 3, 2009 — The pharmaceutical giant Pfizer agreed to pay $2.3 billion to settle civil and criminal allegations that it had illegally marketed its now-withdrawn painkiller, Bextra.

It was the largest health care fraud settlement and the largest criminal fine of any kind ever.

Flush with Cash, Drugmakers Go on the Prowl

It's a time of huge opportunity and risk for drugmakers. Some with big cash hoards will start snatching smaller players, while others will try to bulk up fast to avoid becoming prey

BusinessWeek, October 30, 2008 — Andrew Witty, the new chief executive of giant GlaxoSmithKline (GSK), surveys the wreckage of the global financial meltdown and sees an upside. With pharmaceutical stocks at record lows, it's a good time to acquire biotech companies and other assets that could drive Glaxo's growth for years. Its midsize rival Wyeth (WYE) is also on the prowl—but there's a difference. Faced with a shrinking market valuation, new CEO Bernard Poussot may have to bulk up to ward off larger predators.

Witty and Poussot are two of seven new faces who have taken over at major pharmaceutical companies since 2006. It's a massive changing of the guard, and it comes at a time of both huge risks and irresistible opportunities.

Why Pharma Fears Social Networking†

Brandweek, October 19, 2008 — Although a majority of marketers have embraced online social media and user-generated content efforts, one industry is conspicuously not taking advantage of the gold rush: pharmaceuticals.

The reason: Marketers fear that user-generated content will include complaints about injuries caused by their drugs’ side effects. The law requires these “adverse events” to be reported to the FDA. The FDA’s adverse-event databases are regularly combed by lawyers looking for potential class-action suits.

Thus, drug marketers have stuck with a decidedly Web 1.0 model, in which customer interaction is kept to an absolute minimum.

This head-in-the-sand approach may be about to change. A debate is raging in the drug business as to whether companies should adopt... continue reading