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Rumsfeld's growing 25 million financial stake in Tamiflu

 
 
Reply Wed 2 Nov, 2005 05:47 pm
Rumsfeld's growing stake in Tamiflu
Defense Secretary, ex-chairman of flu treatment rights holder, sees portfolio value growing.
October 31, 2005: 10:55 AM EST
By Nelson D. Schwartz, Fortune senior writer

NEW YORK (Fortune) - The prospect of a bird flu outbreak may be panicking people around the globe, but it's proving to be very good news for Defense Secretary Donald Rumsfeld and other politically connected investors in Gilead Sciences, the California biotech company that owns the rights to Tamiflu, the influenza remedy that's now the most-sought after drug in the world.

Rumsfeld served as Gilead (Research)'s chairman from 1997 until he joined the Bush administration in 2001, and he still holds a Gilead stake valued at between $5 million and $25 million, according to federal financial disclosures filed by Rumsfeld.

The forms don't reveal the exact number of shares Rumsfeld owns, but in the past six months fears of a pandemic and the ensuing scramble for Tamiflu have sent Gilead's stock from $35 to $47. That's made the Pentagon chief, already one of the wealthiest members of the Bush cabinet, at least $1 million richer.

Rumsfeld isn't the only political heavyweight benefiting from demand for Tamiflu, which is manufactured and marketed by Swiss pharma giant Roche. (Gilead receives a royalty from Roche equaling about 10% of sales.) Former Secretary of State George Shultz, who is on Gilead's board, has sold more than $7 million worth of Gilead since the beginning of 2005.

Another board member is the wife of former California Gov. Pete Wilson.

"I don't know of any biotech company that's so politically well-connected," says analyst Andrew McDonald of Think Equity Partners in San Francisco.

What's more, the federal government is emerging as one of the world's biggest customers for Tamiflu. In July, the Pentagon ordered $58 million worth of the treatment for U.S. troops around the world, and Congress is considering a multi-billion dollar purchase. Roche expects 2005 sales for Tamiflu to be about $1 billion, compared with $258 million in 2004.

Rumsfeld recused himself from any decisions involving Gilead when he left Gilead and became Secretary of Defense in early 2001. And late last month, notes a senior Pentagon official, Rumsfeld went even further and had the Pentagon's general counsel issue additional instructions outlining what he could and could not be involved in if there were an avian flu pandemic and the Pentagon had to respond.

As the flu issue heated up early this year, according to the Pentagon official, Rumsfeld considered unloading his entire Gilead stake and sought the advice of the Department of Justice, the SEC and the federal Office of Government Ethics.

Those agencies didn't offer an opinion so Rumsfeld consulted a private securities lawyer, who advised him that it was safer to hold on to the stock and be quite public about his recusal rather than sell and run the risk of being accused of trading on insider information, something Rumsfeld doesn't believe he possesses. So he's keeping his shares for the time being.
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Find this article at:
http://money.cnn.com/2005/10/31/news/newsmakers/fortune_rumsfeld/?cnn=yes
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Type: Discussion • Score: 1 • Views: 1,188 • Replies: 23
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candidone1
 
  1  
Reply Fri 18 Nov, 2005 10:47 am
I have recently come accross this although I know it's old news. This article was of interest:

Quote:
Now anyone who hasn't been on Mars for the last month or two, knows that there were only two things that were going to stop the human version of bird flu. One was a bird flu vaccine (which probably would work better if you were a bird) and the other was something called Tamiflu. Yes, that Tamiflu. In such short supply that the hundreds of millions of orders that have been pouring into Gilead probably won't be filled for another 12 months or so. But everyone has got to have it because somehow or other it became established that Tamiflu really worked.

This was the party line, anyway, for about a week, until word began trickling back in that maybe Tamiflu didn't work. In fact, the word on Tamiflu has always been positive at first and then eventually negative. It's a kind of pattern. We even find corroboration of it here on the Democrats.com, in what appears to be either a chat room or news roundup as follows, "Rummy was CEO of Gilead Sciences until named to the Bush cabinet and, like Cheney, still has ties that bind to the 'old company.' Now isn't it an 'amazing coincidence' that the drug Tamiflu patented by Gilead Sciences is being pushed by the National Institutes of Allergies and Infectious Diseases as the NUMBER ONE choice for flu, which, wonder of wonders, is sweeping through in one epidemic after another."


Source
0 Replies
 
McGentrix
 
  1  
Reply Fri 18 Nov, 2005 10:54 am
Smart, wise people tend to make smart, wise investment choices.

What exactly is the issue here?
0 Replies
 
blatham
 
  1  
Reply Fri 18 Nov, 2005 10:58 am
We suspect you are a chicken.
0 Replies
 
BumbleBeeBoogie
 
  1  
Reply Fri 18 Nov, 2005 11:16 am
Blatham
blatham wrote:
We suspect you are a chicken.


Chicken Hawk?
0 Replies
 
CoastalRat
 
  1  
Reply Fri 18 Nov, 2005 11:38 am
Guess what?? I have stock in Tamiflu! Good thing I'm not a politician or I guess y'all would be trying to make some stupid, idiotic point about me also.

Wait!!! I get it. You're trying to make some claim that Rumsfeld has used his position to begin an outbreak of bird flu in the world so that his stock would go up. Gosh, I should have known that was his plan all along.

And you guys think I'm the funny little clown.

Oh, wait, I am. Sorry.
0 Replies
 
Cycloptichorn
 
  1  
Reply Fri 18 Nov, 2005 11:39 am
Well, he may have had some influence with the choice of Tamiflu amongst gov't officials, don't you think?

Cycloptichorn
0 Replies
 
CoastalRat
 
  1  
Reply Fri 18 Nov, 2005 11:47 am
Possibly. But then there is this quote from the article that certainly makes it appear as though Rumsfeld has done no such thing.

"Rumsfeld recused himself from any decisions involving Gilead when he left Gilead and became Secretary of Defense in early 2001. And late last month, notes a senior Pentagon official, Rumsfeld went even further and had the Pentagon's general counsel issue additional instructions outlining what he could and could not be involved in if there were an avian flu pandemic and the Pentagon had to respond."

I think BBB just likes searching the internet all day for anything that will make a republican look bad. The heck with the source or the truth of the article. Cut and paste anything and everything anti-Bush, anti-republican seems to be her mantra.
0 Replies
 
McGentrix
 
  1  
Reply Fri 18 Nov, 2005 12:44 pm
CoastalRat wrote:
I think BBB just likes searching the internet all day for anything that will make a republican look bad. The heck with the source or the truth of the article. Cut and paste anything and everything anti-Bush, anti-republican seems to be her mantra.


Truer words have not been spoken.
0 Replies
 
candidone1
 
  1  
Reply Fri 18 Nov, 2005 03:32 pm
McGentrix wrote:
Smart, wise people tend to make smart, wise investment choices.

What exactly is the issue here?


No, it's about cronyism and conflict of interest.
...but forget those.
Let's defend the interests and "smart investments" of the ruling elite--those who sometimes make policy decisions based on arbitrary (read: financial) criteria.
0 Replies
 
McGentrix
 
  1  
Reply Fri 18 Nov, 2005 03:40 pm
candidone1 wrote:
McGentrix wrote:
Smart, wise people tend to make smart, wise investment choices.

What exactly is the issue here?


No, it's about cronyism and conflict of interest.
...but forget those.
Let's defend the interests and "smart investments" of the ruling elite--those who sometimes make policy decisions based on arbitrary (read: financial) criteria.


Then you are suggesting that the US govt's decision to purchase tamiflu is a direct result of Rummy's investments?
0 Replies
 
candidone1
 
  1  
Reply Fri 18 Nov, 2005 05:14 pm
I'm suggesting that the incidences of what look like suspect business transactions by key figures in this administration are largely ignored by Bush supporters as mere coincidences.
0 Replies
 
McGentrix
 
  1  
Reply Fri 18 Nov, 2005 05:24 pm
candidone1 wrote:
I'm suggesting that the incidences of what look like suspect business transactions by key figures in this administration are largely ignored by Bush supporters as mere coincidences.


Then you are NOT suggesting that the US govt's decision to purchase tamiflu is a direct result of Rummy's investments??

I am confused. Either you believe there is a conspiracy here, or you don't. Which is it?
0 Replies
 
jpinMilwaukee
 
  1  
Reply Fri 18 Nov, 2005 06:15 pm
McG... you have it all wrong... this is a serious issue and the health of the nation and millions and millions of people worldwide are inconsequential when compared to Rummy's bank role. This is such an important issue I hereby call for a voluntary boycott of taminflu.

Those in agreement that Rummy making a few bucks off of an old company in which he has completely distanced himself from and seemingly gone out of the way to not be directly involoved in decision making concerning said company is a horrible horrible betrayal of the American population please... boycott taminflu. What say you, BBB, Blatham, Cyc and Candid... are you with me on this one?

[/sarcasm]
0 Replies
 
candidone1
 
  1  
Reply Fri 18 Nov, 2005 06:45 pm
McGentrix wrote:
candidone1 wrote:
I'm suggesting that the incidences of what look like suspect business transactions by key figures in this administration are largely ignored by Bush supporters as mere coincidences.


Then you are NOT suggesting that the US govt's decision to purchase tamiflu is a direct result of Rummy's investments??


I am suggesting that based on some information I have read about Tamiflu it seems odd that this drug is being recommended and touted by government agencies as the vaccination to use with no concrete evidence that it is on fact the vaccination that will prevent a pandemic.
I am suggesting that there are wise business choices made by wise businessmen and women, and there are also governments who will take any means necessary to ensure their financial interestes are secured.
0 Replies
 
candidone1
 
  1  
Reply Fri 18 Nov, 2005 06:50 pm
jpinMilwaukee wrote:
McG... you have it all wrong... this is a serious issue and the health of the nation and millions and millions of people worldwide are inconsequential when compared to Rummy's bank role. This is such an important issue I hereby call for a voluntary boycott of taminflu.

Those in agreement that Rummy making a few bucks off of an old company in which he has completely distanced himself from and seemingly gone out of the way to not be directly involoved in decision making concerning said company is a horrible horrible betrayal of the American population please... boycott taminflu. What say you, BBB, Blatham, Cyc and Candid... are you with me on this one?

[/sarcasm]


You make a very weak case and your sarcasm doesn't help.
I did not say "boycott Tamiflu", nor did I give primacy to Rummy's bankroll over the health of real people.
So, you missed my point entirely.

I know you don't see it, but if the boys were wearing blue jersies, you'd be crying "foul".
0 Replies
 
roverroad
 
  1  
Reply Fri 18 Nov, 2005 09:35 pm
McGentrix wrote:
Smart, wise people tend to make smart, wise investment choices.

What exactly is the issue here?


The issue is that people in power shouldn't be pushing a vaccine just because they own stock in it. There may be far better vaccines out there and we'll never know because he is more interested in making money than he is in people's health. Typical Republican position. Even if there isn't a better vaccine out there, there could have been alternatives in development that are history now because that can't compete with Tamiflu
0 Replies
 
McGentrix
 
  1  
Reply Fri 18 Nov, 2005 10:09 pm
So, you are suggesting that we should have NO plan for an outbreak, rely on unknown, unproven pharmaceuticals and companies with no facilities for mass producing flu vacceine? All this because Rummy owns stock in a company with a long history of providing a workable vaccine?
0 Replies
 
roverroad
 
  1  
Reply Fri 18 Nov, 2005 10:16 pm
McGentrix wrote:
So, you are suggesting that we should have NO plan for an outbreak, rely on unknown, unproven pharmaceuticals and companies with no facilities for mass producing flu vacceine? All this because Rummy owns stock in a company with a long history of providing a workable vaccine?


No, I'm suggesting that we spread the wealth. Why invest in one vaccine and depend on one company when it may be easier for other companies to send vaccines to other parts of the country. It's better to have more sources instead of just one. Besides, this whole Bird flu thing is blown way out of proportion. What, 60 people have died out of billions of people on the planet? Sounds like one more scare tactic by the Bush administration to make a buck to me.

We already know they lie about security threats, the former national security advisor said it him self that they would raise the security threat level for political reasons. So why should we be concerned about getting Tamiflu?
0 Replies
 
rabel22
 
  1  
Reply Sat 19 Nov, 2005 12:44 am
How about the shortage of flue vaccine because there is only one manufacturer who refuses to make enough thereby causeing the price to raise. More profit.
0 Replies
 
 

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