Monday, March 13, 2006

Merchant of Death?

According to The Independent, Secretary of Defense Rumsfeld has made $5 million in capital gains by selling stock in the company that manufactures Tamiflu, the only leading drug to combat avian influenza. The government is buying huge quantities of Tamiflu in anticipation of a possible epidemic if the disease mutates and begins spreading from human to human.

A few interesting points: a) It doesn't help the credibility of government when high officials make a profit on any stocks--the deal always raises suspicion that something's going on--but it's especially questionable when it the company involved has a large government contract; b) in this case, it's certainly no secret that the government is buying as much Tamiflu as it can get; d) apparently, Rumsfeld was on the board of the small firm that developed Tamiflu, now made by Roche, one of the giant pharmaceutical companies; from that it seems likely that he came by his shares without some inside knowledge--although we would have to know exactly when he bought his stock to be sure; e) questions have been raised about whether Tamiflu will really be effective against a human variant of avian flu. Does the Secretary know something we don't? Is that why he's selling now, before there is any widespread infection?

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