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By Renay San Miguel
technewsworld.com
February 19, 2010
I had planned on using Hayden Hamilton, founder of the Portland, Oregon-based ProgressiveRx.com, as my source for updates on how things were going in Washington with healthcare reform -- especially regarding any technology-driven solutions to spiraling healthcare costs. After all, Progressive is an online pharmacy resource that helps consumers buy discounted drugs from overseas outlets, one of many that have sprouted on the Internet and seen their traffic soar along with the cost of buying medications. Hamilton was keeping close watch on the goings-on in D.C., since he has a business stake in the outcome.
However, last week Hamilton received a very troubling diagnosis from Google (Nasdaq: GOOG) AdWords, and now his company's financial health is in jeopardy. And he thinks the big pharmaceutical companies -- and their lobbying clout -- are behind it all.
"I guarantee you, none of [Google's] users are writing them and saying, 'Stop making it easy to find inexpensive drugs online,'" Hamilton told me.
Yet there's something else weighing down on ProgressiveRx -- the differences in how online pharmacies are ranked based on who's doing the ranking. Hamilton wants you to know he's a legitimate, legal business simply trying to provide cash-strapped or insurance-poor consumers with cheaper medications, even if they come from outside the U.S. He makes overseas trips to check on his suppliers. His drugs are safe, he said, because they're the same drugs being bought by the brand-name pharma companies.
Yet one third-party watchdog says ProgressiveRx is OK; another has the company on its "not recommended" list.
Stuck in between is Hamilton, who could probably use an extra-strength pain reliever right now.
Moving the Goalposts
Hamilton relies on placement in Google AdWords for about 70 percent of his traffic. So the following note from Google AdWords focused his attention like an particularly-expensive bill from a health insurance provider:
"We've decided to change our policy regarding online pharmacy sites in the U.S. and Canada. Starting at the end of this month, Google AdWords will only accept ads from online pharmacies in the U.S. that are accredited by the National Association Boards of Pharmacy VIPPs program, and from online pharmacies in Canada that are accredited by the Canadian International Pharmacy Association. These pharmacies may only target ads to users in the country in which they are accredited. Additionally, we will no longer accept advertisements from affiliates of online pharmacies."
Hamilton knows the score regarding online pharmacy validation, the concerns over counterfeit drugs, fraudulent drug sellers and possible health risks. He also knows how important it was for ProgressiveRx to get the high marks it's received from PharmacyChecker.com, which has evaluated online pharmacies for safety, customer service and price comparisons since 2003. It's been used by Google to validate online pharmacies since 2006.
Hence the effect on Hamilton's blood pressure with the next paragraph of the AdWords note:
"Accordingly, we will no longer be using PharmacyChecker as our 3rd party verifier of online pharmacies since we will be referencing the VIPPs verification process instead. AdWords advertisers who have a valid PharmacyChecker ID but which are not accredited by VIPPs or CIPA will no longer see their online pharmacy ads displayed once this policy change comes into effect," the note continued.
"What boggles my mind is that Google has every incentive from a revenue and user perspective to stick with its PharmacyChecker policy," Hamilton said. "I have no doubt they're making a fortune off of their ads in this area. The amount we're paying them is phenomenal. They were kind of the leaders in this, and then out of the blue they change. I would love to know what prompted this."
Hamilton has his suspicions -- the same pharmaceutical lobby that he says torpedoed efforts to make buying drugs from overseas easier in the Senate's healthcare bill. "It's pressure from big pharma, it really is."
http://www.technewsworld.com/story/Has-Google-Cut-a-Backroom-Deal-With-Big-Pharma-69373.html
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