The Washington Post’s Peter Whoriskey has another outstanding story in his series on the Avandia drug scandal at GlaxoSmithKline and what it says about the corruption of our system for testing the safety and efficacy of drugs.
Years ago, the government funded a larger share of such experiments. But since about the mid-1980s, research funding by pharmaceutical firms has exceeded what the National Institutes of Health spends. Last year, the industry spent $39 billion on research in the United States while NIH spent $31 billion.
The billions that the drug companies invest in such experiments help fund the world’s quest for cures. But their aim is not just public health. That money is also part of a high-risk quest for profits, and over the past decade corporate interference has repeatedly muddled the nation’s drug science, sometimes with potentially lethal consequences…
The odds of coming to a conclusion favorable to the industry are 3.6 times greater in research sponsored by the industry than in research sponsored by government and nonprofit groups, according to a published analysis by Justin Bekelman, a professor at the University of Pennsylvania, and colleagues.
Moreover, at the same time that companies have been funding a larger share of research, they have shifted the job of conducting trials away from nonprofit academic hospitals to for-profit “contract research organizations.” Critics say that with this change, corporate bias is less likely to be challenged.
As you can see from the example of Avandia, which caused some 27,000 heart attacks and deaths. Astonishing. Great work by the Post.
— Here’s a feel-good story for your Audit reading, via the Star Tribune. A grocery store owner in Minnesota is retiring and selling his two stores to his 400 employees, at no cost to them:
On Jan. 1, Lueken’s Village Foods, with two supermarkets in Bemidji and another in Wahpeton, N.D., will begin transferring ownership to its approximately 400 employees through an Employee Stock Ownership Program (ESOP).
Lueken said he had multiple offers to sell to large independent chains and might have gotten more money that way. But he and his family believe that selling to workers will be better for them, the business and this north-central Minnesota city of 13,000 people…
Employees say Lueken’s decision, which won’t require them to pay anything for their shares in the business, multiplied the high esteem they already held for their boss.