[afro-nets] Big Pharma on a mission to woo Democrats

["Claudio Schuftan" <claudio@hcmc.netnam.vn>]

Big Pharma on a mission to woo Democrats
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>From Bala <bala@haiap.org>

Financial Times: 
By Stephanie Kirchgaessner in Washington

The pharmaceutical industry was in the enviable position two years ago of having the right friends in the right places in Washington.

Billy Tauzin, the Republican lawmaker, and Thomas Scully, who ran Medicare during President George W. Bush?s first term, were leaving their respective posts to lobby for the drugs industry after securing the addition of a pharma-friendly prescription drug subsidy in the federal healthcare programme for the elderly.

Another ally in the Senate, Rick Santorum of Pennsylvania, had emerged as a powerful player in Congress and was considered a presidential hopeful.

The industry?s mirrored that of other big companies and trade associations that had strengthened their ties with the Republican majority by hiring only Republican lobbyists for top positions a practice championed by Mr Santorum that was known as the ?Street project?.

Now the prospects of the industry?s giants have taken a turn. After spending an estimated $10m (£5.3m, $7.8m) on Republican incumbent candidates ahead of this year?s mid-term elections Democrats received about $4.5m  no other sector is expected to face as hostile a reception on Capitol Hill after the Democrats take over in 2007.

Shares in US and European pharmaceutical companies tumbled in the days after the election, with Pfizer, Eli Lilly and Novartis each down 5 per cent or more. The New York Stock Exchange Healthcare Index recovered slightly last week after a sharp drop.

Nancy Pelosi, incoming Speaker of the House, who once accused Mr Tauzin of ?selling seniors down the river? for $2m ? the sum the Louisiana Republican was reportedly paid to join the association he now runs, PhRMA? says one of her priorities will be to give the government the power to negotiate Medicare drug prices.

Other lawmakers, including Henry Waxman, the representative, are expected to target the industry by calling hearings on issues ranging from marketing to drug safety. Congress is also expected to increase its scrutiny of the industry?s chief regulator, the Food and Drug Administration. The industry will face this harsh new reality without the support of Mr Santorum, who lost his re-election bid.

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Claudio Schuftan 
mailto:claudio@hcmc.netnam.vn