Technology and Research Critical on the Pharmaceutical Beat

The pharmaceutical industry has evolved in recent years into one of the most crucial beats on the business desk.

With $200 billion in annual revenue, prescription drugs rank as the most profitable industry worldwide. Advances in technology have prompted many journalists to become more aggressive in covering pharmaceuticals.

"Consumers weren't as wired 10 years ago as they are now," says Ed Silverman, business reporter with The Star-Ledger in Newark, N.J. "It pays to go on the Internet to search for news, blogs and message boards. There's always someone out there who's willing to find out more information."

In recent weeks, the 'someone out there' turned into millions of people with concerns raised over the safety of the arthritis treatment Vioxx, produced by drug giant Merck. Following the recall of one of the company's most lucrative products, millions of consumers began asking critical health questions.

Congress gets its turn this week when it asks corporate executives why they weren't more forthcoming with the number of heart attacks and strokes suffered by patients who were prescribed the drug. Silverman notes that Vioxx is a drug first associated with safety issues four years ago.

"When there are safety issues raised -- whether from consumers, doctors or consumer advocates -- it's always worth paying attention to what they are saying," he says. "You don't know what you're going to find if you delve into it."

Linda Lloyd, who covers Merck for The Philadelphia Inquirer, concurs there were early concerns about Vioxx. "There have been cardio vascular concerns raised from time to time since it was introduced," she says.

While it may prove difficult to uncover potential fatal effects of a prescription drug before the company can issue a recall, there are some basic approaches to keep in mind.

Skepticism surrounding the safety of drugs will be raised from many different groups, whether consumer advocates, doctors or competitors who are pushing a similar drug. Some of these red flags are without merit. But keep a history log of what concerns are associated with the companies and drugs your paper covers.

"I think it pays to look at whatever the claims are," Silverman recommends. "Even if one doesn't do a story immediately, it's good to keep track of it. It also helps to go back and look through research in medical publications.

"You have to be very patient and diligent. Go back in time to find documents, researchers and interview old employees who were around."

A few resources Silverman suggests that reporters should reference are the Journal of the American Medical Association (JAMA) and Medline Plus.

A common thread among drug companies is their strong marketing presence. Think about the demographics they are attempting to reach on various television stations and newspaper sections.

"If one always tries to understand how they make their money, it becomes easier to figure out what we see when we look at marketing and ads," Silverman says. "This will give you a better understanding of what motivates the drug companies."

Given the wide reach of a drug such as Vioxx, countless numbers of lawyers are not far behind, undoubtedly out for their own financial gain as much as that of their clients, who have taken the prescribed drug.

With so many lawsuits likely to circulate through the courts, what then is the best method for including the legal presence in your business section?

"I notice there is more chatter and advertisements from different law firms," Silverman notes. "At some point, it becomes routine. I don't really spend a lot of time concerned over the number of lawsuits. Some lawsuits are skimpy, some are meaty. But I'm more concerned over the developments that may follow from product liability."

While there are several angles to consider, there are two underlying themes to drug coverage -- embrace technology and conduct research.

Using technology, visit advocate group Web sites that include information about reported side effects from different drugs. When it comes to your research, always be on the watch.

"Business writers covering the pharmaceutical industry, individuals or groups on a regular basis should research to find materials about the drug," Silverman says.

Forbes magazine features a breakdown of "Eight Questions Merck must Answer" as its date with Congress approaches.

Copyright © 2008 Donald W. Reynolds National Center for Business Journalism