Stock Investing Merck Tries New Tactic To Sell Vaccination Drug Force Girls To Take It
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Merck's New Strategy: Vaccination for All Girls
Stock Investment in Pharmaceuticals
For decades, Merck has been a leading growth stock, but like Pfizer and other major pharmaceutical companies, it is experiencing a slowdown. To reignite growth, Merck has adopted a controversial strategy. However, the slowdown is impacting the entire pharmaceutical industry globally, causing significant concern in executive suites.
These companies, once raking in tens of billions annually, are now facing challenges. Despite being one of the most profitable industries, with impressive profit margins and returns, they are struggling to maintain momentum. Efforts like President Bush's prescription drug program for seniors, largely supported by the pharmaceutical lobby, have not reversed this trend.
Challenges in Drug Development
Many pharmaceutical companies have grown so large that developing new blockbuster drugs is increasingly difficult. As existing drugs lose patent protection, their sales can plunge as generics take over. This has prompted Merck and Pfizer to downsize their sales forces.
Merck's Bold Move: The Cervical Cancer Vaccine
Merck has developed a new cervical cancer vaccine. According to the American Cancer Society, over 11,000 women will be diagnosed with this disease annually, with about 3,500 deaths. In comparison, breast cancer affects about 180,000 women per year, with 40,000 fatalities. Despite its devastating impact, cervical cancer receives less attention.
Merck's vaccine is a scientific breakthrough, a testament to the dedication of its researchers. However, its marketing strategy is stirring debate. Merck aims to mandate this vaccine for every pre-teen and teenage girl in the U.S., leveraging legislative influence to bypass parental choice.
Texas Leads the Way
Merck secured a major victory in Texas, where Governor Rick Perry signed an executive order mandating vaccination without legislative approval. This requires every young girl in Texas to receive the Gardasil vaccine, costing $360 for the necessary three doses. In contrast, a measles vaccine is only $43 per dose.
Under this order, proof of vaccination is necessary for school admission. While insured families might cover the cost, millions of uninsured young people pose a financial challenge. Notably, a former Chief of Staff to Governor Perry is now a lobbyist for Merck, highlighting the influence of lobbying.
Nationwide Lobbying Effort
With several patents expiring, Merck is aggressively lobbying to mandate the vaccine across the U.S. States considering such mandates include California, Maine, Michigan, and more.
This raises questions about the extent of lobbying and political contributions needed to convert these mandates into billions in sales. There are also concerns about the vaccine's safety since clinical trials mainly involved older women, not the teenage target demographic.
The Industry's Future
Major pharmaceutical companies are in decline, unable to sustain past research success. This has led to massive layoffs among drug representatives, who played a crucial role in influencing doctors' prescriptions.
Growth is now shifting towards younger biotech firms located near major research universities, funded by billions from the National Institutes of Health.
For traditional pharmaceutical giants like Merck and Pfizer to compete with these innovative biotech firms, they must continue to cut costs and align with federal goals. Given that the largest drug consumers are Medicare, Medicaid, and Veterans Administration beneficiaries, these companies face an intriguing future. Stay tuned as this scenario unfolds.
Goodbye and Good Luck
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