THE LAST WORD: Daniel Vasella; The Right Prescription?(Interview)

Byline: Karen Lowry Miller

Drug companies seem to be under fire from all sides these days, whether it be for not revealing research data on side effects, or for neglecting the diseases of the developing world. Daniel Vasella, the medical doctor who runs Swiss pharmaceutical group Novartis, has come up with some novel solutions to how his industry can work to regain

the world's trust, without losing sight of its core mission. NEWSWEEK's Karen Lowry Miller spoke to him recently. Excerpts:

LOWRY MILLER: Do drug companies focus only on rich-country diseases?

VASELLA: If that is true, and I'm not saying it is true, the fact is that genius also needs incentive. It is clear that you have to offer financial incentives for organizations to do work where they can make a profit. Otherwise nothing will change. If you think that you can take away the incentives without having the same effect you have currently on the developing world, you're wrong.

So how does society create incentives?

If governments say it is a priority, they need to create financial incentives for companies to engage. You cannot count on a company to engage out of personal commitment and acceptance of a role within society that goes beyond making a profit. Profit is absolutely essential. You could say it's like the air we breathe. More vital, maybe, is intellectual property. If you destroy it, you destroy the basis for rewarding innovation.