Pfizer's Kindler on Health-Care Reform and the Wyeth Deal

In a conversation with Maria Bartiromo, the CEO discusses Pfizer's acquisition of Wyeth and its plan to provide some drugs for free to those without jobs and insurance

Scott Robinson

By Maria Bartiromo

President Barack Obama just announced a goal of passing comprehensive health-care reform legislation by July 31, so we all can expect a long, hot summer of debate over how to expand coverage for 47 million uninsured Americans. And at the same time health reform is being fast-forwarded, the drug industry is continuing to consolidate into a handful of very large players. The most recent deal is Pfizer's (PFE) $68 billion purchase of Wyeth, which is expected to be completed later this year. Besides the merger, Pfizer made news on May 15—two days after Obama's call for a deadline on health-care reform—with a plan to provide selected drugs free to those who have lost their jobs and health insurance. To get a business view on health-care reform from an industry insider, I talked with Pfizer CEO Jeff Kindler, who has led the pharmaceutical giant since 2006.

maria bartiromo

Does business really want universal health care?

jeffrey b. kindler

I can't speak for business…but I just think it's scandalous in a country of our means to have tens of millions of people without access to quality health care. And I don't believe in the long run it's in the interest of business to have an unsustainable health-care system.

If the President said to you: "Jeff, your country needs you to figure out how to pay for the health care of your 47 million uninsured countrymen," what would your plan be?
You know, many people who are currently uninsured are actually eligible for existing programs like Medicaid, SCHIP [State Children's Health Insurance Program], and Medicare, and I think we need to enroll them in those programs. There are others eligible for existing employer plans, and we should do the same for them. And then for those who truly have no access to insurance, I believe [insurance] is best delivered through the private sector but with government subsidies for people who can't afford it.

A new health-care environment is emerging in Washington. How would Pfizer adapt to Medicare negotiating drug prices, to patients importing prescription drugs from abroad, and to comparative effectiveness—pitting one approved drug against another in a clinical trial instead of against a placebo?
I do not believe it would be good public policy to permit the government to, in effect, set Medicare prices for pharmaceuticals. That's a form of price controls that would impede the industry's ability to make the costly but crucial investments in discovering new medicines. As for comparative effectiveness, I do believe it's appropriate to provide greater information about how different treatments and drugs work compared to one another so that doctors and patients can make their judgments. I would not, however, be supportive of a system whereby a group in government makes those determinations and imposes them on doctors and patients.

Business Exchange

Track and share business topics across the Web.