Drug Industry's Glory Days May Be Over [1]
Submitted by Bob Burton [2] on
The drug industry [3] is bracing itself for major legislative changes once the new Congress sits. Forbes journalist Matthew Herper notes that, following the mid-term elections, major drug company shares have dropped by over 5%. Herper cites an analysts report from the Prudential Equity Group which warns that "Democrats are well positioned to force action on drug prices, and contrary to conventional wisdom, a [presidential] veto is not a sure thing." One bill already under consideration, co-sponsored by Republican Mike Enz [4] and Democrat Ted Kennedy [5], is aimed at reforming the U.S. Food and Drug Administration [6]. The bill is a response to the withdrawal of Merck [7]'s drug, Vioxx, after it was found to increase the risk of heart attacks. Some drug industry leaders are despondent about the industry's image. The head of Astra Zeneca [8] in the US, Tony Zook said "I think it's been easy to beat up on the drug industry."