From John Carey at BusinessWeek:
For drugmakers, the Democratic congressional election triumph means a return to the political crosshairs.
Nancy Pelosi (pic - D-Calif.), widely expected to be the new Speaker of the House, has vowed to give the government the power to negotiate—and thus, she hopes, drive down—drug prices for Medicare patients.
Henry Waxman (D-Calif.) and John Dingell (D-Mich.), now that they are back in power, "are licking their chops at the prospect of having hearings" on topics such as the sky-high price of some cancer drugs, says analyst Ira S. Loss of Washington Analysis, which assesses the impact of public policy on investors. The industry also may face a higher bar for drug approvals at the Food & Drug Administration.
The scrutiny could be intense. In the next Congress, expect hearings—and well-publicized outrage—over the price of drugs like Genentech's (DNA) cancer treatment Avastin, which can cost more than $50,000 per year.
Expect the Pelosi-led House to quickly act on her promise by passing a measure aimed at driving down the cost of drugs in the Medicare program.
Expect more talk about importing cheaper drugs from Canada, and more rhetoric about how the FDA may have moved too fast in the past, allowing risky drugs like Merck's Vioxx on the market.
Is there an "up-side" for Big Pharma, we ask?
Another possible lift could come from Democratic efforts to increase the budget of the FDA, making the agency better able to handle increasingly complex new drug applications.
Still, those little boosts may seem like cold comfort when the industry is being grilled in Congress over high drug prices.
For drugmakers, the Democratic congressional election triumph means a return to the political crosshairs.
Nancy Pelosi (pic - D-Calif.), widely expected to be the new Speaker of the House, has vowed to give the government the power to negotiate—and thus, she hopes, drive down—drug prices for Medicare patients.
Henry Waxman (D-Calif.) and John Dingell (D-Mich.), now that they are back in power, "are licking their chops at the prospect of having hearings" on topics such as the sky-high price of some cancer drugs, says analyst Ira S. Loss of Washington Analysis, which assesses the impact of public policy on investors. The industry also may face a higher bar for drug approvals at the Food & Drug Administration.
The scrutiny could be intense. In the next Congress, expect hearings—and well-publicized outrage—over the price of drugs like Genentech's (DNA) cancer treatment Avastin, which can cost more than $50,000 per year.
Expect the Pelosi-led House to quickly act on her promise by passing a measure aimed at driving down the cost of drugs in the Medicare program.
Expect more talk about importing cheaper drugs from Canada, and more rhetoric about how the FDA may have moved too fast in the past, allowing risky drugs like Merck's Vioxx on the market.
Is there an "up-side" for Big Pharma, we ask?
Another possible lift could come from Democratic efforts to increase the budget of the FDA, making the agency better able to handle increasingly complex new drug applications.
Still, those little boosts may seem like cold comfort when the industry is being grilled in Congress over high drug prices.
1 comment:
I tend to be a strong advocate of the Pharma industry. I love the mix of science and business that has made this industry one of the most dynamic of the last decade.
But I have hated "Part D" since I first heard about it. The Pharma industry and whichever CEOs decided this was a good idea deserve a good kick in the pants. Unfortunately for everyone working the industry and everyone who hopes for more new medicines, I'm pretty sure they're going to get that kick. Pharma has no one to blame but themselves.
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