Another FDA Safety Warning (Yawn)

Recs

0

Disney Buys Marvel!

David Gardner called it. He’s up 1,334%! See what David’s recommending that you buy NEXT.

Stock Advisor

Another day, another warning from the Food and Drug Administration.

Such is the new paradigm for drug developers. The FDA is going to make darn sure consumers know everything about every possible side effect that a drug could cause.

The latest victim was the TNF inhibitors -- Amgen's (Nasdaq: AMGN) and Wyeth's (NYSE: WYE) Enbrel, Abbott Labs' (NYSE: ABT) Humira, UCB's Cimzia, and Johnson & Johnson's (NYSE: JNJ) Remicade, which is sold outside the U.S. by Schering-Plough (NYSE: SGP). These drugs inhibit the immune system to treat rheumatoid arthritis, Crohn's disease, and other autoimmune conditions. The FDA warning results from numerous reports of fungal infections in patients taking the TNF inhibitors, including 12 deaths.

I am shocked, shocked to find this out! You mean drugs that inhibit the immune system might also affect the immune system's ability to fight a fungal infection?

Of course, I'm being facetious. The drugs already warn about this possibility right on the label (first page, even), but apparently the FDA wants the warning to stand out more, so that doctors, hopefully, will see it and recognize the signs of infection earlier.

The same group got bad press a few months ago when the FDA started looking at the possibility that the drugs are linked to cancer. In my opinion, neither any warning for that or this new one will likely decrease the multibillion-dollar sales these blockbusters have because the drugs are so effective. Heck, even aspirin has side effects!

Ironically, the increase in warnings by the FDA could backfire. If doctors become swamped with increased numbers of warnings, from Amylin Pharmaceuticals' Byetta's potential link to pancreatitis to a response to reports of more cases of a rare brain disorder in patients taking Elan (NYSE: ELN) and Biogen Idec's (Nasdaq: BIIB) Tysabri to these new ones for TNF blockers, the doctors (and patients) may begin to tune them out.

While that's not going to benefit patients -- and drugmakers certainly don't want to do harm -- it could be beneficial to the myriad of drugmakers that are getting stuck with warning after warning for rare and known side effects.

Welcome to the new FDA -- more drug warnings and fewer drug approvals.

Warning: more Foolishness ahead:

“The Next Great Investment”… That’s how a top global investor describes India’s potential. On Nov. 28, The Motley Fool’s Tim Hanson returns to India to prove it. Follow along in real time and get his TOP pick first (Hanson returned from China in July with a stock that’s up 169%!). Enter email below.

Johnson & Johnson is a Motley Fool Income Investor pick. Biogen Idec is a Stock Advisor recommendation. Whether you like your companies big or small, dividend laden or with multibagger written all over them, we've got a newsletter for you.

Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 08, 2008, at 3:59 PM, mcc06 wrote:

    You may think its funny, but doctors downplay and pooh- pooh the risks to their patients, and say it never happens.

    Well, it does, and I'm one of those 240 that thankfully survived disseminated histoplasmosis thanks to good doctors at Cleveland Clinic. But more doctors and hospitals need to know of this ugly disease and when to treat for it. I'm still recovering two years later, and will probably always walk with a cane and never work again!

  • Report this Comment On September 09, 2008, at 5:33 PM, jbphd wrote:

    Why do you scoff at the FDA for erring on the side of caution? In addition to the potentially devastating consequences that unsafe medications can (and do) have on people's lives, drug manufacturers stake their reputation -- and their livelihood -- on the trust the public reposes in their products. Thus vigilance on the part of the FDA would seem to be entirely appropriate, both because society has a legitimate interest in preserving and protecting the health of its citizens and because investors -- your target audience, presumably -- have a legitimate interest in ensuring the survival of responsible pharmaceutical companies.

Add your comment.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 722588, ~/Articles/ArticleHandler.aspx, 11/24/2009 4:10:38 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
Why Investors Should Be Excited for a Bank Breakup

Related Tickers

11/23/2009 4:00 PM
BIIB $46.79 Up +0.41 +0.88%
Biogen Idec, Inc. CAPS Rating: ****
JNJ $62.69 Up +0.38 +0.61%
Johnson & Johnson CAPS Rating: *****
ABT $53.13 Down -0.51 -0.95%
Abbott Laboratorie… CAPS Rating: *****
WYE $50.39 Down +0.00 +0.00%
Wyeth CAPS Rating: ***
AMGN $56.25 Up +0.87 +1.57%
Amgen, Inc. CAPS Rating: ****
ELN $6.35 Down -0.11 -1.70%
Elan Corp, plc (AD… CAPS Rating: ****
SGP $28.15 Down +0.00 +0.00%
Schering-Plough Co… CAPS Rating: ****

Community: Investing Wiki

Term Of The Hour

Corporate bond fund: A corporate bond fund is a mutual fund that invests in corporate bonds. If a bond fund is not otherwise designated, it is presumed to be a corporate bond fund.

Want to learn more or edit this definition?
Click here to read more!