Whilst everyone is shouting at NICE for their decision:
Global Nexavar net sales as reported by Onyx's collaborator Bayer HealthCare Pharmaceuticals, or Bayer, were $229.2 million for the third quarter 2009, a 27% increase compared to $180.9 million in the same period in 2008. Onyx and Bayer are marketing and developing Nexavar(�) (sorafenib) tablets, an anticancer therapy currently approved for the treatment of liver cancer and advanced kidney cancer in the U.S., European Union, Japan and other territories.
Net income for the third quarter 2009 reflected growth in Nexavar sales and lower Nexavar commercial expenses, offset by expanded clinical development efforts, lower investment income and interest expense on the convertible senior notes issued in August 2009.
Source: PR Newswire
Onyx finally made a profit last year — the first time the cancer drug developer has gone into the black in the last five years. It made $1.9 million and returned just 3 cents a share, on revenues of $194 million. Those revenues were nearly double the year before as Onyx’s deal with Bayer on the drug Nexavar fully kicked in.
Could that profit have been any higher? Yes, it could, had not the top executives at the company gotten such hefty raises in compensation. In 2007, the company’s four named executives received $6.8 million between them. In 2008, those top four had become the top six, and they shared $11 million in total compensation.
In other words, executive compensation was roughly five times the profits the company returned to shareholders.
Now, Onyx has some excuses: They replaced a CEO, added an HR chief and a corporate development chief. But those moves were offset somewhat by the fact that the new CEO, N. Anthony Coles, was paid $2.8 million in total compensation even though he only arrived in March, whereas the outgoing boss, Hollings C. Renton, only earned $2.5 million before he left. Coles’ basic salary nearly quadrupled over Renton’s.
Here’s the summary:
- Name, 2008 pay, 2007 pay
- CEO N. Anthony Coles, $2.8 million, NA
- Ex-CEO Hollings Renton, $2.5 million, $2.6 million
- CFO Gregory Schafer, $818,000, $690,000
- HR chief Judy Batlin, $937,000, NA
- COO Laura Brege, $1.7 million, $1.4 million
- Ex- chief medical officer Henry Fuchs, $2.2 million, $2.1 million
- SVP corp. dev. Juergen Lasowski, $1 million, NA
Numbers are rounded, includes stocks and options whose value changes over time.
The Drug companies are reaping in large profits in order to satisfy their shareholders. In a time of recession their profits are obscene.
Obscene is a strong word, but bear in mind some of these drugs are out the reach of many people because of their inflated cost, so people will die in order to satisfy the greed of the stakeholders.
And the companies that will provide these drugs? The Health Insurance companies will be investing their money into these companies because their returns are huge and they too can profit. No wonder so much money is being put into the political arena and promoting Private Health Care. In the mean time the poor will get a second hand service,if that.
At the same time, other European Health Services provide these drugs because their societies view Health Care in a different light. Here in the UK we spend £1bn a year in Iraq which could be invested in the NHS (source) although recent figures put it higher at 1.5bn(source). This affect the squaddies who don't get a decent pension from the MOD for having their legs blown off.
Since the oil taps turned on in the North Sea we have wasted the revenue whilst countries like Norway have invested in their country and services to give their citizens a great standard of living. (source)
What type of society do you want to live in?
You might be in a hospital ward looking for hope, or seeing a friend or relative dying when you know that there's something that could help but it's priced out of range.
It WILL NOT change if you don't stand up and represent yourself. Whether its a letter to your local MP, writing to a paper, supporting an Organisation that will campaign on the relevant issues. If you do nothing then that's what you will get.
On another approach, you could change many habits that could put you in that circumstance. Reducing alcohol, reducing meat heavy diets etc would be a first step. Many options have been discussed before in this blog.
There are always choices and you can re-evaluate what you want in your life.
Cramps last night but feeling pretty good right now. Getting closer to the house move - clean country air awaits!