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"Worse Than Big Tobacco": How Big Pharma Fuels The Opioid Epidemic

Authored by Lynn Paramore via The Institute for New Economic Thinking,

Once again, an out-of-control industry is threatening public health on a mammoth scale

Over a 40-year career, Philadelphia attorney Daniel Berger has obtained millions in settlements for investors and consumers hurt by a rogues’ gallery of corporate wrongdoers, from Exxon to R.J. Reynolds Tobacco. But when it comes to what America’s prescription drug makers have done to drive one of the ghastliest addiction crises in the country’s history, he confesses amazement.

“I used to think that there was nothing more reprehensible than what the tobacco industry did in suppressing what it knew about the adverse effects of an addictive and dangerous product,” says Berger.


“But I was wrong. The drug makers are worse than Big Tobacco.”

The U.S. prescription drug industry has opened a new frontier in public havoc, manipulating markets and deceptively marketing opioid drugs that are known to addict and even kill. It’s a national emergency that claims 90 lives per day. Berger lays much of the blame at the feet of companies that have played every dirty trick imaginable to convince doctors to overprescribe medication that can transform fresh-faced teens and mild-mannered adults into zombified junkies.

So how have they gotten away with it?

A Market for Lies

The prescription drug industry is a strange beast, born of perverse thinking about markets and economics, explains Berger. In a normal market, you shop around to find the best price and quality on something you want or need - a toaster, a new car. Businesses then compete to supply what you’re looking for. You’ve got choices: If the price is too high, you refuse to buy, or you wait until the market offers something better. It’s the supposed beauty of supply and demand.

But the prescription drug “market” operates nothing like that. Drug makers game the patent and regulatory systems to create monopolies over every single one of their products. Berger explains that when drug makers get patent approval for brand-name pharmaceuticals, the patents create market exclusivity for those products—protecting them from competition from both generics and brand-name drugs that treat the same condition. The manufacturers can now exploit their monopoly positions, created by the patents, by marketing their drugs for conditions for which they never got regulatory approval. This dramatically increases sales. They can also charge very high prices because if you’re in pain or dying, you’ll pay virtually anything.

Using all these tricks, opioid manufacturers have been able to exploit the public and have created a whole new generation of desperate addicts. They monopolize their products and then, as Berger puts it, “market the hell out of them for unapproved and dangerous uses.”

Opioids are a drug class that includes opium derivatives like heroin (introduced by German drug maker Bayer in 1898), synthetics like fentanyl, and prescription painkillers like oxycodone (brand name: OxyContin). A number of factors are aggravating the addiction crisis: There has been a movement in medicine to treat pain more aggressively, while at the same time wide-ranging economic distress has generated a desire to escape a dismal reality. But a key driving force is doctors—who have been wooed by pharmaceutical marketing reps—overprescribing for chronic pain.

“For the first time since the years after heroin was invented,” writes investigative journalist Sam Quinones in Dreamland: The True Tale of America’s Opiate Epidemic, “the root of the scourge was not some street gang or drug mafia but doctors and drug companies.”

Doctors were once reluctant to write prescriptions for opioids. The U.S. drug regulator, the Food and Drug Administration (FDA), would only approve such drugs for severe cases like cancer patients in chronic agony or certain people in short-term pain after, say, an operation. But representatives of Connecticut-based drug maker Purdue, which released OxyContin in 1996, along with other companies, began to flood doctors’ offices with reports asserting that using the drug for off-label purposes was harmless. Often the targets were primary care physicians with little training in addiction. Have a chronic arthritis case? Give your patient OxyContin. Tell folks take it every day, for weeks, even years, to treat just about any kind of chronic pain. The upshot was addiction —typically not because people were getting high for fun, but because they used a legal drug in precisely the way the doctor ordered.

Purdue and others whisked doctors to stylish retreats to push them to prescribe drugs for uses not approved by U.S. regulators—a marketing strategy banned by federal law. They even created fake grassroots organizations to make it seem as though patients were demanding more prescriptions. Pharmaceutical companies like to dodge responsibility for the opioid crisis by blaming dishonest distributors and pointing out that they’re not the ones prescribing or handing out drugs to patients. True enough: They don’t need to, because they’ve done their work hooking you long before the drug is in your hands.

“The marketing is not only fraudulent; it’s incredibly elaborate,” says Berger.


“Fake scientific studies promote the lie that opioids are better than other medications for pain. They’ve gone to just about any length. Bribery, you name it. It’s outrageous.”

OxyContin is so addictive that it can create physical dependency in a matter of weeks. As drug makers and doctors who began to dole out pills by the handful in pain clinics learned, addicts do not behave like ordinary consumers. They don’t “choose” to buy or to wait until next week. They need their drug right away and will do anything to get it because if they don’t, they will suffer excruciating symptoms.

A Los Angeles Times report shows that among the lies Purdue spread about OxyContin was that one pill subdued pain for twelve hours. Except that for many patients it wears off much sooner, exposing them to horrific pain and withdrawal. Purdue knew this, but feared lower sales if it admitted the truth. So sales reps advised doctors to just give stronger doses, which increased the addiction risk.

As the money from hooked patients piled up, so did the bodies. So many bodies that earlier this year the Ohio Coroner’s Office found nowhere to store them

In 2007, Purdue pleaded guilty in federal court in Virginia to misleading doctors and patients about OxyContin’s safety and paid a $600 million fine. But that sum was hardly an annoyance. From 1995 to 2015, Purdue made $35 billion from OxyContin sales alone. The Sacklers, who own the company, are now one of the richest families in America, as revealed by this triumphant Forbes spread. They know that lax regulation keeps the heat off, and that even litigation and criminal prosecutions can do little to stop them. Berger says that until such legal programs are massive in scale and scope, companies will go on with business as usual.

“We have to have injunctive relief [a court order to stop a behavior] that bans the marketing to doctors of opioids completely for unapproved uses, as well as an expansion of the FDA and DEA [Drug Enforcement Agency] to specifically target the drugs,” says Berger. His law firm, Berger & Montague, is involved in the effort to seek relief for the city of Philadelphia, which has seen above-average opioid prescribing and suffered the highest rates of fatal drug overdoses in the state last year.

Even though prescriptions have been slightly reduced across the country since 2012, Philadelphia is finding out what happens to many people hooked on opioids when they can’t get a prescription or find the price too high: They turn to smack. Fatal overdoses of heroin, oxycodone’s close cousin, have been skyrocketing since 2007 across the country.

“Landscapes of Despair”

The opium poppy has been part of human history since at least 3,400 B.C. when it was cultivated in Mesopotamia as the “joy plant.” Derivates, such as laudanum and morphine, offered more convenient and, people wrongly believed, safer ways to get the plant’s benefits. Bayer originally touted heroin as a non-addictive substitute for morphine, even for children, until it was outlawed in the U.S. in 1925. Rendering it illegal did not stop it from destroying the lives of many of America’s most celebrated artists, from Billie Holiday to Philip Seymour Hoffman.

Drug overdoses now kill more people than gun homicides and car crashes combined. In 2015, nearly two-thirds of all overdoses had one thing in common: opioids. As more and more names appear in the obituaries linked to opioid overdoses, most recently Buddhist teacher Michael Stone, Americans begin to wonder who is next.

Syracuse University’s Shannon Monnat, a sociologist focused on rural issues and an INET grantee, has been studying the epidemic and how it impacts various populations. Her research reveals that the rise in drug-induced deaths has been especially sharp among middle-aged people (45-55), with prescription opioid overdoses increasingly impacting both middle-aged and older populations. Heroin, whose sedating and euphoric effects are very similar to prescription opioids, looks to be the culprit in more young adult overdoses.

Monnat considers how the opioid crisis points to bigger societal problems impacting the economy, educational institutions, the health care system, political systems, and communities. Her work centers on investigating the characteristics of what she calls “landscapes of despair”—places where people are hurting economically and socially, like Appalachia, the Industrial Midwest, and parts of New England. She points out that persistent disadvantage and long-term poverty are clearly connected to the opioid crisis, noting that many of the areas most impacted were once robust centers of manufacturing before jobs moved to other countries.

Opioid addiction seems to thrive in downwardly mobile small cities in rural areas—but not all of them.

“What’s fascinating is that some of these areas have very high mortality rates from drug overdose, like Appalachia,” say Monnat.


“But others, like the Southern “Black Belt” [a region which stretches across Alabama and Mississippi], have not seen such rises.”

Originally named for its rich, dark, soil - which attracted cotton planters in the 19th century - the Black Belt has a large African American population. The area has a history of unremitting poverty, low incomes, high unemployment, and high mortality. Yet despite many hardships, which are linked the legacy of slavery, Monnat says that the region is also distinct for its “very tight-knit communities, strong kinship networks, and other networks where people can find emotional support.” It seems that when people have somewhere to turn in hard times, they may build up immunity to an epidemic like the opioid scourge.

Ironically, another factor that may have protected these communities is prejudice, as Quinones discusses in Dreamland. The low-profile heroin dealers originating from a small municipality on Mexico’s west coast who are associated with the current opioid scourge have tended to fear black Americans, preferring to target white communities. They also avoid big cities where large cartels are already established. So small, predominately white towns are their sweet spot.

Appalachia is known for kinship networks, but it also has a legacy of isolation and an outlaw tradition associated with the history of moonshining and bootlegging which can feed into today’s underground selling and distribution of opioid drugs. In this region, much of the struggling white working class has experienced economic distress with little hope of relief from America’s political system. Democrats often openly disdain “rednecks” and “hillbillies” while concentrating on identity politics rather than economic hardship. Republicans promote policies of free trade and deregulation that cast the region further into destitution.

Monnat has found that counties with large numbers of people employed in physical labor—especially occupations with higher rates of disability—have higher rates of drug fatalities. These are places where coal miners work in backbreaking positions and military veterans suffer the pain of injuries. She observes that drug companies have besieged these areas with aggressive marketing of pain pills. “In Appalachia, you’d see mining companies with physicians on staff prescribing opioids to keep people in pain working,” she says. “That was happening before OxyContin, but companies like Purdue targeted these communities to push OxyContin as a safer alternative to other pain medications.”

The National Institutes of Health (NIH) report that the opioid epidemic, which started as a regional crisis, is now a national crisis. It casts a pall over far more than individual lives; it is now decimating communities and even helping to reshape the American political landscape. Monnat finds a relationship between the landscapes of despair and the 2016 presidential election. Voting patterns show that areas in which President Trump did better than expected, like Pennsylvania and Ohio, were also places where opioid overdoses and deaths from alcohol and suicide occurred at high rates over the past decade.

During his campaign, Trump expressed concern for people in regions like Appalachia and flung stinging barbs at the politicians who had failed them. These voters supported him in high numbers, and yet sadly, his policies will likely give more power to the pharmaceutical companies that have turned their suffering into stock windfalls.

Profit Trumps People

Trump the campaigner shook his fist at Big Pharma for “getting away with murder” - one of those statements that occasionally drops from his lips with atomic accuracy. But Trump the President has done an about-face. As journalist David Dayen has pointed out, a draft of an executive order on drug prices (which never materialized) called for deregulation of the FDA and favors to industry. It was written by none other than a pharmaceutical lobbyist.

In March, President Trump issued an executive order creating a commission to study drug addiction and the opioid epidemic. The commission, headed by New Jersey Governor Chris Christie, has so far released recommendations which locate the overprescribing problem “in doctor’s offices and hospitals in every state in our nation,” while making nary a mention of pharmaceutical marketing departments.  The panel suggests insufficient remedies like new treatment facilities and educating schoolchildren on the dangers of opioids, along with ineffective ones like more funds to Homeland Security. Regulation of Big Pharma? Nope.

The federal government did announce that it would team up with drug makers to research and generate non-opioid pain medications and additional medication-assisted treatment options. Among the participants? Purdue.

Economist William Lazonick of the University of Massachusetts Lowell and an INET grantee, agrees with Berger that the way the pharmaceutical industry operates amounts to a catastrophe for the public.

“It’s crazy that each and every drug is not treated like a regulated monopoly,” he says. “Taxpayers fund much of the research that goes into creating these drugs through the NIH and other public research facilities. Moreover, the companies are gifted with a monopoly through patents which last two decades.”

Lazonick notes that Big Pharma claims that it needs high profits to keep inventing new drugs, but it spends more of its profits buying back its own stock than increasing investment in R&D on new drugs. Executives running drug companies are incentivized to make profits any way they can because they are rewarded by high stock prices. Lazonick explains that they stoke those stock prices by gouging patients or lying about the safety of products—whatever it takes.

He observes that for the past several decades America has undergone a devastating experiment based on the philosophy of economist Milton Friedman, who claimed that the only social responsibility of a company is to make a profit. Untimely deaths from tobacco-related illnesses, auto safety failures, and now, harmful opioid drugs, prove that the experiment is a tragic failure.

Lazonick sees the need for nothing less than a new structure of corporate governance that ensures the ethical responsibly of drug makers to do what they are supposed to do: create high-quality, low-cost products that are safe. The current structure, based on the misguided idea that companies should be run for the sole purpose of enriching shareholders, is particularly perverse when it comes to products that are potentially fatal. The problem with this model is that when shareholders are the only people who matter, the rest of us suffer.

Since taxpayers support pharmaceutical companies by funding public research and many other things they require to do business, Lazonick says it is only fair and logical that someone representing the public sit on their boards. Berger adds that companies should be required to make drugs widely available at affordable prices in return for their use of publicly-funded, basic research at no cost whatsoever.

America, for the time being, stands out among nations in letting pharmaceutical companies run amok to inflate drug prices, advertise and market drugs without proper regulation, and use taxpayer resources while exposing them to egregious harm.

“The only thing America’s drug companies are competitive about,” says Lazonick, “is getting people addicted."


Manthong nmewn Thu, 10/12/2017 - 21:45 Permalink

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I don’t suppose that the demeaning of religiosity and the soul-sapping secularization of society by the Marxists in education, entertainment and politics has anything to do with confused people seeking a rapid respite with convenient and affordable drugs.

In reply to by nmewn

HedgeJunkie nmewn Thu, 10/12/2017 - 22:01 Permalink

I have chronic pain.  It's due to a neck injury doing something stupid like peeling the cab of a truck back with my head while working as a voluteer EMT.  Now that I'm, ahem, older it has morphed into a coat hanger of pain between my neck and shoulders and now radiates down my arms (I'm starting to get twinges in my back these days, too) and my hands are mostly numb.  I had neck surgery about four years ago where they roto-rootered some bone mass out of my cervical spine and that helped, for about a month.I told my doctor that I don't want or need drugs.  I desire to use some other method to manage the pain.For the last year and a half my doctor has tried to get me into pain management.  I don't know what it does but my focus is beginning to waver and the pain gets intense, hopefully they have some sort of coaching, meditation or way of thinking that will force the pain back.The health insurance group keeps declining my pain management referral citing that a "more effective treatment could be provided by readily available prescription medications".  So over the last six months, my doctor has prescribed oxycontin and naproxen.  I have hundreds of the things.Question:  How do I blackmarket them?

In reply to by nmewn

NoDebt HedgeJunkie Thu, 10/12/2017 - 23:17 Permalink

"So over the last six months, my doctor has prescribed oxycontin and naproxen.  I have hundreds of the things.  Question:  How do I blackmarket them?"You really want to know?OK, I did that game.  It's not that tough.The hard part is finding your first good contact to distribute.  You do NOT sell the shit yourself on a street corner or at the local bar.  That's how you end up in jail.  This is mostly about getting over your fear of choosing tobe a drug dealer.  That's not too difficult.  Just remember that selling sin is easy and, more importantly, profitable.  That is your motivation.  If you are motivated for any other reason, again, you're going to jail.  It's only a matter of time.If you have to look any further than the kids in your own neighborhood I'd be shocked.  Talk to them, hang out, make a few subtle suggestions.  People who kinda-sorta know you are better than complete strangers.  People who ACTUALLY know you are completely off-limits, even if they are willing (they'll fuck you worse than strangers).  Hand a couple pills out, act like you don't really know what you're doing (which won't be difficult since you don't).  Watch what happens.  You will find some of the kids take the pills but a few will SELL OR GIVE THE PILLS TO THEIR FRIENDS FOR VARIOUS FAVORS.  Those are your prospective distributors.  Not to worry, they WILL come back to you and tell you in subtle ways that they want more of them.  Money may be offered.  If it is, ACCEPT THE MONEY.  You want the guys who boil shit down to cash, not stories and bullshit and trades for other goods/services.  CASH.  Little baby Machiavellian motherfuckers, but not psychopaths who will shoot your ass just to get the next bag of pills under the seat of your car.  You have to be able to read people at a basic level at least.  Who you choose to do business with is, ultimately, up to you.You will be able to tell after not too long who understands that you're a regular supply but not an unlimited supply.  You will become something like friends with them.  You will hang out with them occasionally, but you won't introduce them to anyone who lives on the "clean" side of your life.Congrats, you are now a minor supplier of drugs to a waiting market with little downside risk to yourself and a nice, nearly-legal supplemental income for yourself.  Questions? 

In reply to by HedgeJunkie

Bendromeda Strain NoDebt Fri, 10/13/2017 - 08:06 Permalink

You watched too much Breaking Bad. In high school I fell into a swimming pool after sampling Mom's post-surgery Darvons. I was compelled to spill the beans on what I had done, and if they had been from Mr. Smith the Neighborhood Amateur Peddler, he would have been under the bus as it pulled in to the parking lot that afternoon.

In reply to by NoDebt

detached.amusement HedgeJunkie Fri, 10/13/2017 - 12:32 Permalink

I've got a coworker who has been told that since she refuses to take pain medication, then she must not be in actual pain.seriously. check out the first few sets of movements here.  its called 'xing shen zhuang'...I paid an exorbitant amount of money to learn this in person, but it was worth every penny...provided I do the exercises daily, of course ;) for stuff like what you have, there simply is no substitute for daily, gentle range of movement exercises.  that's the ONLY thing that will correct the imbalances in the long term.

In reply to by HedgeJunkie

Ignatius Thu, 10/12/2017 - 21:31 Permalink

Saw an article today that said that the large pharmaceutical maker of Fentanyl was vigorously fighting the legalization of pot.These are racketeers, plain and simple, and mammon is their false God.

ebworthen Thu, 10/12/2017 - 21:38 Permalink

If the "Doctor" prescribes it than it is A O.K.!Never-mind that the Pharmaceutical company gets the Doc and office catered lunch every day, or the Sky Box at the big game, or the trip to Club Med for "free".

Ikiru Thu, 10/12/2017 - 21:45 Permalink

Just legalize all drugs for adults. Adults should be the ones to decide what chemicals to put into their bodies. Not you, not me, and certainly not the government. (Of course, if people are using drugs and driving cars or endangering children, they are taking away the rights of others, and that should be a criminal offense.)

Anteater Thu, 10/12/2017 - 22:06 Permalink

This will become every Americans' last and worst nightmare.The moment you are wheelchaired through the door of theMIC Care warehouse, you can no longer leave on your own.Your healthcare is no longer managed on your terms. Youare force-fed (in a nice way) whatever pharmaceuticals theLippencott lists for your medical 'conditions'. After a time,you will be unwittingly enrolled in drug interaction controls,which pay a royalty to the researchers but not the subjects,and your pill load will begin to increase. If you resist or youbecome 'difficult', you'll receive muscle relaxants and Zoloft.You'll spend every day catatonically glued in front of PriceIs Right, waiting for the pills in your evening medication.You will learn, in time, to choke down two dozen pills withjust a ketchup cup of water, as the nurse glowers at you.You think I'm kidding, but I'm not. MIC Care is Dr Mengele.You'll find neither the police nor the State can help you.You are 'under a doctor's care' on 'prescribed medicine'.Eventually you die, the certificate says 'failure to thrive'.Then after midnight, the hearse comes for your corpse,and you're cremated in a cardboard coffin. Hooo-ahhh!Who wants to sing the Star Spangled Banner with me?!

Dougs Decks Anteater Thu, 10/12/2017 - 22:16 Permalink

I'm sorry, but this is my opinion,,, There is no healthcare,,, It is only "Death management",,, If you need a machine in order to live, you deserve to die,,, If you are some helpless fucking tard, sitting in a wheelchair, spouting off useless theories of the universe, you deserve to die,,, If you have to take a drug, in order to survive, you're probably gonna die,,, And this goes for everybody, including myself, and everyone I know,,,, It is a bitch, when the bacteria outgrow the petri dish,,,

In reply to by Anteater

Mena Arkansas Thu, 10/12/2017 - 21:59 Permalink

((( Meet the Sacklers )))Profit From Pain: Who’s Behind America’s Opiate Epidemic?…Raymond Sackler, Former CEO Of OxyContin Producer Purdue Pharma, Dies At 97…How the American opiate epidemic was started by one pharmaceutical company…Oxycontin: How Purdue Pharma Helped Spark The Opioid Epidemic…

Dougs Decks Thu, 10/12/2017 - 22:04 Permalink

Knew a few people who were pill poppers,,, 4 outta 5 are now dead,,, Before any hit their middle 50's,,,, I know a shit load of Joe 6-Pac, Partake in that peculiar herb, Couple shot, Mixed Drink, Maybe the rare line of colombian finest, Kind of Guys,,, All still alive,,, In their 60's, 70's, and 80's,,,

luckylogger Mtnoise255 Thu, 10/12/2017 - 23:01 Permalink

The meds can be very helpful with helping a person to have a productive life after debilitating injuries!I have broken my neck two times and my back and lower back in addition to other issues after beeing in a couple of severe logging accidents. Hence the name as I should be dead. HA.I went on to get a bachlors in finance and a masters in education, none of that would have been possible without strong pain meds to minimize the pain so I could move on. I started school when I was 47, do not tell me there is no benefit from treating chronic pain! I would be bedridden without.Lots of folks abuse narcotics, but just because they do, do not fuk me because of it. Help the dumb fukers instead.These meds help alot of people to go on and lead a productive life. Otherwise they would never be able to , I know a few folks in the same boat as me. You never hear about them, all you heare about is the stupid idiots that abuse the meds!I do not know anybody that abuses the meds like the newspaper says we a all do.Sometimes folks have got to stop looking at everything so fuking negatively and look at the good also!!!Good luck with that!!!!!??

In reply to by Mtnoise255

ThePhantom Thu, 10/12/2017 - 22:22 Permalink

the only thing perhaps more perverse is the TV.... affecting us in so many ways, imperceptible, yet profound... (drug commercials? and so much more)

William Dorritt Thu, 10/12/2017 - 22:30 Permalink

Opioids are part of the Soft Kill for middle Amerika while harvesting what economic power they have thing you know they will be taking our kids away if we don't vaccinate them and dumping toxic waste and neuro toxins in the water supply to soft kill us.