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November 2002

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Mon, 11 Nov 2002 10:45:27 CST
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Hey everybody!
  Another pharm article if you are interested.

Take care,
 Celia

On 11 Nov 2002, [log in to unmask] wrote:
> From: Makeba 
> 
> 
> 
> --------------------
> Drug companies pick up likely support in Congress 
> --------------------
> 
> Elation over GOP wins may not last
> 
> By Theresa Agovino
> Associated Press
> 
> November 11, 2002
> 
> NEW YORK -- There's no doubt that the pharmaceutical industry triumphed
along
> with the Republican party in last week's election.
> 
> But it wasn't the kind of victory deserving of the finest champagne--a
mellow
> wine would be more appropriate.
> 
> Experts say the pharmaceutical industry's heavy spending in the election
paid
> off in a Republican Congress that will certainly be more sympathetic to
its
> views. But they caution that if pharmaceutical companies try to get
severe
> limits on a Medicare drug benefit or block reforms to help the generic
> industry, there could be a serious backlash, including the price controls
> they fear.
> 
> "The pharmaceutical companies spent a lot of money, and they are going to
be
> looking for payback," said Stephen Schondelmeyer, director of the PRIME
> Institute at the University of Minnesota, which studies the drug
industry.
> "I'm sure they are elated right now."
> 
> Investors are also optimistic. Pharmaceutical stocks rose an average of
2.25
> percent in the two days after the election, compared with a 1.12 percent
> increase in the overall market, according to Morningstar.com.
> 
> Schondelmeyer said the euphoria could be short-lived.
> 
> Since Republicans control Congress and the White House, it will be much
> harder for them to blame Democrats if they fail to deliver relief from
high
> drug prices. Progress could be blocked by the federal deficit and
> Republicans' narrow majority in Senate, and inaction could reflect badly
on
> an industry so closely aligned with the administration.
> 
> The pharmaceutical industry was the ninth largest political contributor
> during the 2002 election. Seventy-three percent of the $18.1 million it
doled
> out went to Republican candidates, according to the Center for Responsive
> Politics.
> 
> It also reportedly funneled $16 million to two senior citizens' groups
that
> ran ads supporting Republican candidates. The industry won't confirm the
> figure but says it did provide United Seniors and The 60 Plus Association
> with grants. Neither group returned calls for comment.
> 
> Creating a Medicare drug benefit is expected to be the first health-care
> issue addressed by Congress. The industry, Democrats and Republicans all
> support a benefit but differ over how it should be administered.
> 
> Pharmaceutical companies favor a benefit because it will broaden their
market
> and increase sales. They want the plan to be managed by the private
sector
> instead of the federal government. Federal control, the companies fear,
could
> result in price controls.
> 
> The Republican-controlled House passed a Medicare drug benefit over the
> summer that would have been controlled by the private sector. But the
> Democratic-controlled Senate preferred a more generous,
> government-administrated approach.
> 
> Ira Loss, executive vice president of Washington Analysis, which provides
> research for institutional investors, said the industry might be wise to
> offer significant program discounts up front if they want to avoid calls
for
> price controls later on.
> 
> "Whatever the government estimates the cost of this benefit to be, it
will be
> more. You are now empowering people who may not have bought drugs before
to
> buy them," Loss said. "And if the costs spiral out of control later on,
> Democrats are going to be calling for price controls."
> 
> Schondelmeyer said there would be a risk in limiting the program to
> disadvantaged seniors because drug costs are a burden for other age
groups
> too. "If people feel they have been left behind, the government will hear
it
> two years from now," he said.
> 
> 
> Copyright (c) 2002, Chicago Tribune
> 
> 
> --------------------
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