
What Does a Diet Drug Have in Common with a Swiffer?
Both contrave and the swiffer are great ideas based on simple plans.
The following was originally posted to
What does the new anti-obesity drug
Yes, I'm talking about that Swiffer, the cleaning tool that is essentially a dry mop with disposable dusters that attach to a dispensible handle.
When the Swiffer was first introduced, it was a revolutionary product. And it remains a top seller for Procter & Gamble, its manufacturer. But in reality, it's not exactly a revolutionary idea. In fact, my mother, in fact (an expert cleaner in her own right, much to my childhood chagrin) used to remark that she could have become a millionaire if she had marketed her own idea for a
Enter Contrave. What exactly is Contrave? It's a weight loss drug being developed by Orexigen Pharmaceuticals, Inc. It's not available yet, but you may have read about it in the business pages a few weeks ago, when Orexigen's stock price (symbol: OREX)
Like the Swiffer, Contrave is nothing terribly new; it's a re-packaged "combination drug" consisting of two commonly used medications that psychiatrists and other doctors have been prescribing for years: bupropion and naltrexone.
In a
So here we have a novel agent that shows some efficacy in a notoriously hard-to-treat condition, but which is not really a novel agent at all. Just like the Swiffer is a
But this is where (in my opinion) the similarities should end. Very few people would blame Procter & Gamble for developing a product that fills a niche but is really an overpriced combination of some readily available (and much cheaper) materials. Frugal consumers can pass on the Swiffer and
But in medicine things are different. When a product receives FDA approval for a given indication (especially a disease as prevalent as obesity), it's an automatic market; plenty of doctors will prescribe it, and insurance companies & public insurers like Medicaid will cover it. Simultaneously, you can bet that a well-orchestrated promotional campaign will rally millions of customers to "ask their doctor" about this "brand new diet drug" they saw on TV. And Orexigen will most certainly charge a hefty premium over the component costs of bupropion and naltrexone alone, to recover the costs of clinical trials and to return a profit to its shareholders. To be sure, as doctors learn that Contrave is actually a combo of two cheaper drugs they can easily prescribe, they might prescribe less of it, but not before a huge market is created and exploited.
Ingenuity is a wonderful thing, especially when it's brought to bear on problems that are notoriously difficult to solve, whether it's the obesity epidemic or that mess on your kitchen floor. However, when a manufacturer repackages old products under a new name and charges a hefty premium for it, we need to be aware of this, and make decisions accordingly. While most consumers don't mind paying an extra few bucks for the convenience of a Swiffer, we should think twice about allowing our cash-strapped medical system to shell out the billions for a "blockbuster" drug like Contrave.

























































