Naomi and Alan didn't say any thing really substantial except their bashing the big pharma. Its true that big pharma have created a massive return on their capital investments but I dont agree that they have squandered a substantial amount of their profits on inefficient business model and uninspired acquasitions. Cash flow of many of these big pharma such as PFE, MRK and WYE are or will be almost the highest ever and they are concerned about expiring patents on their blockbuster drugs. In the current environment, it is not easy to come up with new drugs easily as was done 10 years ago. Yes, they are working hard with their in-house research & development but companies like PFE, LLY and MRK have worked with Contract Reasearch Organizations(CROs)to get away from bureaucracy for years. This is nothing new as if these two guys imply that it is the best course to develop new drugs efficiently and w/o waste. But it is nor easy in the current environment of side effects of the many of the drugs and some of them are withdrawn from the market instead face lawsuits. As a result,FDA is scrutinizing very much before granting any new approvals and this is the result for a slower innovation of new drugs. Companies are trying to curb waste and inefficiencies by combining. Take for example, the incorporeation of WYE into Pfizer will cut from the combined company as many as 20,000 employees to streamline the organization. PFE also has a number of drugs in the pipeline and one current drug for the arthritis has gone through the phase II trials very successfully and is ready for phase III trials. So to bash the big pharma by hitting below the belt doesnt achieve anything. All it does is to lower their stock prices temperoriry and put fear in investors. MY FEELING IS THAT PFE WILL OVERCOME ANY SUCH CRITICISMS IN A LONG RUN AND RESUME ITS HIGHER PRICE ACTIVITY AGAIN. They are very strong with cashflow and active in-house and contract research to bring new drugs on market. Another big worry for investors is the so called healthcare reforms the present administration wants to implement.