FORTUNE -- Earlier this year, drug giant Pfizer (PFE) announced plans to slash spending on research and development by a third. Its shares closed that day up more than 5%. Two days later rival Merck (MRK) went the other way, saying it would maintain existing R&D levels. Its shares fell by nearly 3%. Investors had sent Big Pharma a very clear message: Stop spending so much money to create new drugs, even if you're losing exclusivity on your older drugs through the so-called patent cliff. It's cheaper to just buy developed molecules from private startups.
Unfortunately, such sentiments elevate short-term dollars while ignoring long-term sense. They're reflective of Wall Street's callous indifference toward America's health, even when that health is literal.
To read the full, original article click on this link: No new drugs? Blame Wall Street - The Term Sheet: Fortune's deals blog Term Sheet
