Health reform throws pharma a blow

On Wednesday, the final version of the long-awaited US health reform bill was unveiled, its contents throwing both light and dark on the pharmaceutical industry.

The final version, compiled by the US Senate Committee chairman, Max Baucus, maintains Baucus' earlier proposal for an annual $2.3 billion flat fee on the drug industry that would set up a medicines effectiveness comparison board; however, it contains no plans to empower the federal government to negotiate prices for the Medicare prescription drug program.

Nor does the bill - America's Healthy Future Act of 2009 - include the anticipated requirement for drugmakers to pay rebates to "dual-eligibles" - those who are eligible to enroll in both Medicare (the program for US seniors and some disabled people) and Medicaid (the program for America's poorest).

The annual fee on the drug industry, however, would be allocated across the industry according to market share; while it would not apply to companies whose sales of branded pharmaceuticals are $5 billion or less, it is likely to effect Big Pharma.

Such companies include sanfo-aventis, and the news comes on the same day that US regulators announced the firm needs to provide more information before it's investigational insomnia treatment, eplivanserin, can be approved.

Nonetheless, The Pharmaceutical Research and Manufacturers of America (PhRMA) has so far made no explicit response to the Baucus proposals, instead choosing to comment that what is now critical is that we "remain focused on the important goal of helping pass a comprehensive healthcare reform bill that can get to the President's desk this year."

18/09/09

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