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PHARMA: John Mack on Merck

In an email to the Pharma Marketing list-serv, John Mack said rather more eloquently what I was trying to say at the end of my most recent post:

Another message that this jury sent was: Don’t bury us in scientific/medical jargon. Make it easy for consumers to understand the facts.

But the science was actually beside the point as far as this jury was concerned. They felt that Merck lied or held back important information and did so to protect sales (Merck was incriminated by its own memos!). Someone has to be held accountable for that — this is the main message the jury sent.

The industry doesn’t get this message. All the analysis and talk from pharma execs is about how this is going to make pharma companies more cautious in developing drugs for general health conditions in the future. They’re changing their story that all drugs are risky and patients need to understand that to most drugs are too risky for us to develop in the first place. The execs who are saying this may be listening only to their lawyers, which is a shame.

The pharma industry needs to LISTEN TO ITS CUSTOMERS and really put patients first and be transparent and not cover up the truth or twist results from clinical trials (e.g., changing the endpoint to produce more favorable outcome results) and not dodge questions from docs to protect sales.

John has more to say over on his blog about what went wrong for Merck, in an article called Jury as Focus Group (although at $253m that’s one hell of an expensive focus group!). We both believe that greater transparency about the risks and rewards of pharmaceuticals will be good for everyone in the long run.

PHARMA: WSJ on how Merck lost

I know many of you don’t have WSJ access, but the article this morning on how the Vioxx trial was run is really eye-opening. I’ll re-quote liberally.  First off, how important was all the science? Pretty key given that Ernst did not die from a heart attack or maybe not even a clot but definitely had arrythmia.  What did the jury think? Apparently that didn’t matter too much.

But the Texas verdict — and the way the jurors reached it — offers a worrisome harbinger. Merck argued that Vioxx couldn’t have caused Mr. Ernst’s death because, according to his death certificate, he died of an arrhythmia or irregular heartbeat, not a heart attack. While scientific evidence suggests Vioxx can promote blood clots leading to a heart attack, no data have linked the drug with arrhythmias.

Jurors who voted against Merck said much of the science sailed right over their heads. "Whenever Merck was up there, it was like wah, wah, wah," said juror John Ostrom, imitating the sounds Charlie Brown’s teacher makes in the television cartoon. "We didn’t know what the heck they were talking about."

As they assembled around a rectangular wooden table in the jury room, the question of causality — did Vioxx kill Mr. Ernst? — caused little trouble for the jurors. The coroner who did the autopsy of Mr. Ernst testified he could have had a blood clot that caused a heart attack but disappeared by the time of the autopsy. That would explain why the death certificate only mentioned arrhythmia.

So what is it that a jury will look at?  Perhaps it’s the behavior of the company–you remember Dodgeball?

In interviews, jurors expressed anger and mistrust toward Merck. "If I could say it in one word: hiding," said Mr. Chizer, 43, who works at the Social Security Administration. "Every time a question was asked, any one of [the Merck] witnesses circumvented the questions by going somewhere else. Just give us a straight answer."

David Webb, 20, cited a letter Merck sent to doctors around the country including Mr. Ernst’s doctor. Mr. Webb felt it buried information about potential cardiovascular risks. "Who knows, what if they had put the right information and Dr. Wallace had picked up the phone and called Bob Ernst and told him?" he asks.

And was the senior leadership taking the whole thing seriously enough?

Mr. Ostrom, 49, who has a business remodeling homes, was also disturbed that former Merck Chief Executive Raymond Gilmartin and another top Merck official gave videotaped testimony but weren’t in the courtroom. "The big guys didn’t show up," said Mr. Ostrom. "That didn’t sit well with me. Most definitely an admission of guilt."

William G. Bowen, an outside director at Merck who is on the board’s executive committee, said in future trials the company will seek better ways "to make basic scientific points as simple as possible." He also said the company may put different people on the witness stand although no decision has been made about Mr. Gilmartin’s testimony. A spokesman for the Merck defense team said taped depositions are common in trials. Mr. Gilmartin’s deposition "demonstrated that Merck’s decisions with respect to Vioxx were based on the science and in the best interest of patients," the spokesman said in a statement.

And then there’s the theatrics of a great trial lawyer, and Lanier appears to be very good, and also highly highly prepared (if not quite as "prepared" as Gene Hackman in The Runaway Jury)

In the Vioxx trial, Mr. Lanier paid a group of local citizens, matched to the jury’s demographics, to sit in the courtroom as shadow jurors and give him feedback on the effectiveness of his arguments. The shadow jurors, who made $125 a day, weren’t told who they were working for. Mr. Lanier flew in a PowerPoint expert from California to help him prepare a visual presentation for his closing argument. And he retained Lisa Blue, a psychologist and highly regarded litigator with Baron & Budd, Dallas, to watch the reactions of the real jury as the case unfolded.

From the beginning, Mr. Lanier showed his theatrical flair, speaking loudly and gesturing while roaming the courtroom as if it were a stage. PowerPoint slides in his opening statement portrayed Merck as an automated-teller machine giving cash to executives. Merck’s marketing arm was depicted as a bulldozer that would push sales at any cost.

He had workers wheel 157 boxes of paper into the courtroom to show how Merck had inundated the Food and Drug Administration with documents that obscured Vioxx’s problems. He finally stopped when Merck lawyer Gerry Lowry objected that the stack obstructed her view of the jury. Mr. Lanier set two trophies Mr. Ernst won for participating in marathons on the witness stand as Mrs. Ernst recounted the day he died. A huge portrait of the couple on their wedding day faced the jury on a large screen.

Mr. Lanier’s shadow jury met each night at a McDonald’s, providing feedback to a consultant about the progress of the trial. Last Monday, two days before closing arguments, the jurors deliberated for more than four hours and provided Mr. Lanier with an early verdict: 9 to 4 in his favor — with $115 million in damages. That wasn’t good enough. The real 12-person jury would have to vote 10 to 2 for a decision to be valid.

In a strategy meeting held the same evening, Mr. Lanier got a candid assessment from Ms. Blue, the adviser who was watching the real jury. "Four or five are really strong followers" for the plaintiff, she told Mr. Lanier, while "two or three are very bad for us."

She told him that on the issue of whether Merck failed to warn the public about the risks of Vioxx, his case was "good and tight." But that wouldn’t matter if the jurors weren’t convinced that Vioxx was the culprit. "You’re weak on causation," Ms. Blue told him.

She advised him to press hard on "cause" in his closing statement and to stress that the jury only needed to be 51% sure Vioxx was a cause of Mr. Ernst’s death. The 51% figure was a way of describing the legal requirement that there be a "preponderance of evidence" in the plaintiff’s favor. "Write [51%] on the board twice: Arrhythmia is a cardiovascular event," she instructed him. "That gets you there."

She also urged him to be humble, to play up his role as a Baptist preacher and even to suggest to jurors they might get notoriety if they voted for him. One juror, Ms. Blas, had written in her questionnaire that she loves the Oprah Winfrey show and tapes it. "This jury believes they’re going to get on Oprah," Ms. Blue told Mr. Lanier. "They only get on Oprah if they vote for the plaintiff."

Two days later, facing the jury with his final argument, Mr. Lanier kept to his plan. He advised jurors that 51% confidence in Vioxx as a cause of death was good enough. He sprinkled the speech with biblical references, at one point using the tale of Esther to urge the jurors to do the right thing even if they were fearful. And he hammered home the point that they would be sending a message that would be heard widely. "I can’t promise Oprah," he said, but "there are going to be a lot of people who’ll want to know how you had the courage to do it."

The verdict came in with punitive damages of $229m apparently estimated at the amount Merck estimated that it stood to lose "if new cardiovascular risk information on Vioxx’s label were to become effective in October 2001 instead of February 2002."  Actually punitive damages aren’t really allowed in Texas, but they are in plenty of other places….and jurors tend to be pissed when they’re told to assess them and then find that they can’t be awarded. Quite why Ernst was worth $24m I don’t know and it seems to me somewhat unlikely that the Vioxx killed him, but this is clearly not over for Merck or other big pharma companies.

So here’s my suggestion to big pharma.  Be open about the science and be open about the risks as well as the benefits of the products you’re selling.  Think of the longer term.  I still believe that if you give consumers the full facts some people will choose a "risky" product for what they perceive to be a good shorter-term benefit. But if you’re perceived as bamboozling the FDA and the public, and your marketing operation is clearly trying to hide defects, you are in the long run only hurting yourselves. And worse you’re leading to a general distrust of all the science behind pharmaceuticals and medicine.  And this country already has enough people who don’t believe in science.

PHARMA: Merck gets PR makeover at opportune time?

You know that this is one of those things that’s just an unfortunate coincidence, but the headline in my in-box says that "Merck Hires B-M to Rebuild Image". B-M is Burson-Marsteller, a huge PR agency and part of the WPP Group that Merck is using for advertising too. But I just had to laugh when given what happened on Friday, this is dated Saturday 20th August and they say this:

Although Merck remains embroiled in the after-effects of the high- profile global recall of arthritis drug Vioxx, the company insists the campaign has been in development for more than two years.

You know this press release was in the works for some time, and you just have to laugh at the serendipity of it coming out straight after the verdict goes the wrong way.

TECH: Open source EMRs — how open is open? And will it matter?

cAt the most excellent HISTalk blog, there’s an interview with Scott Shreeve, Medsphere Co-Founder and Chief Medical Officer. Now MrHISTalk has once again got one up on THCB as when I was due to interview Scott (or was it his brother Steve?) at TEPR, he didn’t show up — at least not in the 5 minutes window I gave him before I wondered onto the next booth! But what’s clear is that the enthusiasm of his account of how Medspehere is creating a cheap hospital EMR based on VistA has at least somewhat won over MrHISTalk, a man known for his somewhat cynical account of the likelihood of open source actually getting anywhere in health care. You should absolutely read that interview, which incidentally as much as anything really shows that MrHISTalk knows his stuff and does his homework.

On the other hand I’ve also been corresponding with another true believer, Fred Trotter, who is responsible for the FreeB open source billing system. The Medsphere guys seem to be sidestepping the question of whether they are going to put their version of the VistA code back into the open source domain. And Fred seems suspicious that they will not. I hope to have Fred (and hopefully others involved in this discussion too) writing for THCB shortly, but in the meantime go check out Fred’s credo and think about whether the radical open source philosophy he espouses is a good fit for health care, and/or whether Medsphere’s reworking of VistA is the answer for smaller hospitals, and who gets all this stuff to the small practices who really need it.

Finally, you may have noticed that I didn’t answer the question I posed in this post’s title. But for those of you who are concerned as to why this stuff matters read Joe Kraus’ (Excite founder and former dangerous 4×4 driver at the Stanford Ski lodge) article on the relative costs of working with Linux and proprietary formats. Just think about the real impact of a ten-fold reduction in IT costs in the next ten years.

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PHARMA: Brutal news for Merck

The jury in the first Vioxx trial has found Merck liable for the death of the patient by arrhythmia. Merck had to fight this one as it didn’t even seem to be the kind of heart disease that those people who did get heart disease in the VIGOR and other studies died from.  But they lost, and the jury awarded $253.4m.  Where they got the .4 from I’m not sure, but that’s a hell of a lot of punitive damages.  Guess that "Dodgeball" memo was pretty expensive in the end.

So if you play out the math there are an alleged 56,000 deaths from Vioxx. So if every 4 death’s costs Merck  $1 billion, then they owe some 14 trillion dollars.  That somewhat exceeds the gross national income of the country, so perhaps this amount might be reduced on appeal!

Mrk1yr But either way the recovery that Merck stock’s had since Vioxx was pulled last year is absolutely over for now. And it’ll probably be headed lower than today’s close (as usual wish that I’d bought some put options as they were expiring today!)

Here’s today’s action. Mrktoday Not exactly pretty.

POLICY/PHYSICIANS: Is the Medicare reimbursement issue more serious this time?

This week things are starting to get a little serious regarding physicians’ Medicare reimbursement. The AMA is gearing up for a fight, trying to avoid a scheduled 4.3% cut in Medicare reimbursement. Meanwhile a survey of California doctors suggested that they would stop taking new patients at the lowered rates. Much of this is just bargaining rhetoric, but CMS is determined to start Medicare down the pay-for-performance road, and has already begun to initiate this process by paying hospitals for reporting quality measures (even though it’s less than 0.5% of their Medicare revenue).

Meanwhile Republican house rep Nancy Johnson is pushing a pay-for-performance bill which would change how physicians get paid. Anytime you put doctors, money, and quality and performance requirements in a sentence together, be prepared for at the least a vigorous debate. Medicare is still the big Kahuna, and where it goes other payers will follow — if they’re not moving there already.

THCB: Podcast question

Did anyone download the podcast into their MP3 player?  If so did it download once or twice?  (I’m trying to figure out if there’s a slight problem in the code).  Any other comments please let me know, before I launch this as a regular feature.

And I’ll be the interviewee of a podcast soon for the Journal of Medical Practice Management…(and yes Ron I’ll be talking about high-deductibles and HSAs). Details when it’s out, but here’s the RSS feed if you want to point your aggregator at it..

THCB: The First Podcast–Erick Novack

Here is THCB’s first podcast. You can listen to it here by clicking on this link — Eric Novack interview, and telling it to "open" when it asks you.  That should make the file play in your MP3 player of choice.  But the real idea is to get your iPod aggregator (I use iPodder) to move it to your MP3 player of choice, by aiming at the RSS feed here. And then get out of the house and still listen.

All I did was record an interview over Skype using Total Recorder and then had it saved as an MP3 file.  Once I saved that up to my hosting service (easy) I figured out how to put it in my RSS feed (much harder, or at least harder finding out how to). You can either point your podcast aggregator (like iPodder) at http://matthewholt.typepad.com/the_health_care_blog/rss.xml or you can get it by looking at the "Subscribe to my podcast" line next to the site feeds in the right sidebar.

Take a listen, let me know what you think.

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