STOPPING GOVERNMENT MEDICARE NEGOTIATION TOPS BIOTECH'S 2007 WISH LIST
The biotechnology industry considers Democrats' push for government negotiation of Medicare drug prices to be its biggest threat and is actively lobbying lawmakers against the move, a leading industry expert says.
The Biotechnology Industry Organization (BIO) is focusing on a number of issues as the 110th Congress convened last week. Chief among them are increased FDA funding, user fee reauthorization, funding for stem cell research, patent reforms and regulation of generic biologics.
But the likelihood of direct government involvement in Medicare price negotiations underlies many of the industry's concerns, Jim Greenwood, the group's president and CEO, said in an interview.
"Government price controls spell a decrease in the capacity of the industry to produce new and better cures," he said. "It is vitally important that, in the interest of short-range price savings, we don't end up with long-range destruction of the industry." Less profit means less money to put into R&D, he said. The result will be the "anemic drug market" seen in Canada and Europe.
The direct negotiation issue came to a head when the House announced its plans for this session of Congress. Democrats were expected to introduce their Medicare negotiation bill Jan. 5 and announced that they would not allow amendments to that bill or any others introduced within the first 100 hours. Democrats are planning to vote on the legislation Jan. 12, a spokesman for House Speaker Nancy Pelosi (D-Calif.) said.
Republicans should have the opportunity to comment on the bill, Greenwood said. "There's a lot at stake here," and the minority party should be allowed to be involved. Because direct negotiation is a relatively new issue, it should be subjected to the full amendment process, he added. Such an important issue should not be a "political football."
While BIO is concerned about the impact of direct negotiation on its industry, it is unlikely that direct negotiation will become law, Greenwood said. Without Republican input in the House, it will be more difficult to get Senate Republicans to support the bill. Democrats would have to get 60 votes for the legislation to end debate and place it on the president's desk. "I suspect that they won't," he said. Plus, Greenwood said he believes the president would likely veto the bill.