Wall Street Looks Ahead: Market-Moving Events that Will Shape 2007
This article was originally published in RPM Report
Wall Street analysts are confident that Congress will pass drug safety legislation this year, but in a poll conducted by The RPM Report, they didn't agree on much else. The panel was split most other questions-from whether Congress would remove the "non-interference" clause under Medicare Part D to whether FDA would approve another cox-2 inhibitor.
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Legislation to force price negotiation under Medicare Part D is likely to end in a stalemate. But manufacturers can't afford to relax: the Democrats plan to turn up the pressure even if a law never passes. First they will compare Part D prices to other benchmarks. Then the bullying begins.
Congress can't wait to shower FDA with more regulatory authority, especially in the area of drug safety. But unless Capitol Hill can puts its money where its mouth is, expanding FDA's mission will only send the agency deeper into a fiscal crisis -- and leave industry worse off as a result. An underfunded agency leaves officials scrambling to complete day-to-day activities -- and less time to on activities to further drug development, like nanotechnology and the Critical Path initiative.