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Let’s look at Trump’s “financial interest” in the maker of hydroxychloroquine like the rational people we are, shall we?
According to the NYT, Trump has investments in “a maker of hydroxychloroquine”.
Let’s start there.
1/ https://twitter.com/thedailybeast/status/1247473204991582208
According to the NYT, Trump has investments in “a maker of hydroxychloroquine”.
Let’s start there.
1/ https://twitter.com/thedailybeast/status/1247473204991582208
Boy, that sure sounds like his investments would go up if the drug were suddenly being prescribed for COVID-19, right?
He’d make a fortune!
No wonder he’s pushing the drug!!!
2/
He’d make a fortune!
No wonder he’s pushing the drug!!!
2/
Welp, I did a little quick research on the “financial interest” the NYT was talking about.
Trump’s family trusts have some of their money invested in mutual funds.
Basically, baskets of stocks in a whole bunch of companies.
3/
Trump’s family trusts have some of their money invested in mutual funds.
Basically, baskets of stocks in a whole bunch of companies.
3/
So, he doesn’t directly own stock in the specific maker of hydroxychloroquine (which I’ll abbreviate as HDC for space from here).
He has investments in mutual funds which have *some* of their money invested in one maker - Novartis.
4/
He has investments in mutual funds which have *some* of their money invested in one maker - Novartis.
4/
One of those mutual funds is Dodge & Cox’s Stock Fund.
So, I read up on big institutional investors in Novartis.
The fund Trump owns is one of the largest holders of Novartis stock!
Aha! Smoking gun!
5/
So, I read up on big institutional investors in Novartis.
The fund Trump owns is one of the largest holders of Novartis stock!
Aha! Smoking gun!
5/
That fund holds $1.4 billion in Novartis stock!
That’s huge...
...until you realize that the fund actually has $65 billion in assets under management.
So, that $1.4 billion in Novartis stock equals a grand total of 2.1% of their portfolio.
6/
That’s huge...
...until you realize that the fund actually has $65 billion in assets under management.
So, that $1.4 billion in Novartis stock equals a grand total of 2.1% of their portfolio.
6/
Okay, having 2% of one of your investments tied to a company doesn’t sound that big after all...
...but Novartis still stands to make a killing from the huge volume of HDC sales if it takes off, right?!
7/
...but Novartis still stands to make a killing from the huge volume of HDC sales if it takes off, right?!
7/
Hydroxychloroquine was approved in 1958. It is off patent and sold as a generic - meaning anyone can make and sell it.
There are multiple makers. Novartis’ Sanofi, Mylan and Teva are three of them.
Those three have already committed to providing over 200 million pills.
8/
There are multiple makers. Novartis’ Sanofi, Mylan and Teva are three of them.
Those three have already committed to providing over 200 million pills.
8/
Novartis agreed to *donate* 130 million HDC pills. Teva agreed to donate 10 million. Bayer agreed to donate 2 million.
Donate. As in, give away for free.
9/ https://www.fiercepharma.com/pharma/new-commitments-mylan-and-teva-move-to-supply-tens-millions-hydroxychloroquine-tablets-to
Donate. As in, give away for free.
9/ https://www.fiercepharma.com/pharma/new-commitments-mylan-and-teva-move-to-supply-tens-millions-hydroxychloroquine-tablets-to
Why would Novartis do that?
Why would they give away 130 million pills when they could be raking in the money!?
It ain’t much money. Start there.
130 million pills which sell for < $.30 a piece would generate less than $30 mil. in revenue.
Novartis has $50 bil in revenue.
10/
Why would they give away 130 million pills when they could be raking in the money!?
It ain’t much money. Start there.
130 million pills which sell for < $.30 a piece would generate less than $30 mil. in revenue.
Novartis has $50 bil in revenue.
10/
Even if Novartis was forgoing $50 mil in revenue, that would equal a whopping .1% of their revenue.
That’s the equivalent of someone with $100 giving away a dime.
It ain’t material.
11/
That’s the equivalent of someone with $100 giving away a dime.
It ain’t material.
11/
I’m sorry but this whole “Trump stands to profit off of hydroxychloroquine” thing just doesn’t stand up to rational scrutiny.
It is a super cheap drug. So cheap, companies like Teva and Mylan (the infamous Epi-Pen price gouger) will nearly give it away just for the good PR.
12/
It is a super cheap drug. So cheap, companies like Teva and Mylan (the infamous Epi-Pen price gouger) will nearly give it away just for the good PR.
12/
I mean, practically giving away something that wouldn’t remotely lift a company’s profits in exchange for getting headlines about helping to maybe save lives... that’s the kind of PR money can’t buy.
And the pharmas will absolutely take the good PR.
13/
And the pharmas will absolutely take the good PR.
13/
I could go on but you get the general point.
Folks are running amok with the idea that there is a big payday coming from a drug that was approved in 1958; is generic; costs next to nothing; and can be made by anyone.
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Folks are running amok with the idea that there is a big payday coming from a drug that was approved in 1958; is generic; costs next to nothing; and can be made by anyone.
14/
Trump is a narcissist. He is dysfunctional.
He is lying about a “miracle cure” for selfish, ego-driven reasons.
He wants to be a hero. He doesn’t want to be blamed for the crisis.
15/
He is lying about a “miracle cure” for selfish, ego-driven reasons.
He wants to be a hero. He doesn’t want to be blamed for the crisis.
15/
Running amok with this profit-motive story is going to make us look like effing idiots.
If hydroxychloroquine actually worked and a slew of companies quite literally stepped up to make it for free, Trump would look like a saint while we looked like obsessed conspiracy theorists.
If hydroxychloroquine actually worked and a slew of companies quite literally stepped up to make it for free, Trump would look like a saint while we looked like obsessed conspiracy theorists.
Focus on the irrationality of pushing an untested treatment.
Focus on the snake oil salesmanship of promising miracle cures.
Focus on the dysfunction of disregarding the experts.
Don’t focus on the money. It just isn’t there. And it will make us look like fools.
17/17
Focus on the snake oil salesmanship of promising miracle cures.
Focus on the dysfunction of disregarding the experts.
Don’t focus on the money. It just isn’t there. And it will make us look like fools.
17/17
