Job One for Big Pharma: Repositioning in DC Post-Health Care Reform
This article was originally published in RPM Report
How Wall Street’s reaction to the impact of health care reform may help the pharmaceutical industry make sure it pays off in the long run.
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After implementing a major workforce reduction in January, Abbott Laboratories re-organized its diversified company into three units – proprietary pharmaceuticals, durable growth products and innovation-driven devices. Its latest announcement cements that change: Abbott will divide into a diversified medical products company.
Abbott’s decision to spin-off proprietary pharmaceuticals as a stand-alone company is all about Wall Street: investors cheered the move for “unlocking value” by removing the giant shadow cast by Humira over the diversified base business. But it is also an important touchstone for all the key public policy themes playing out in the biopharma space after health care reform.
Jobs and governors go together like bread and butter. PhRMA is using the employment strength and new-economy mystique of biopharmaceuticals to try to line up strong advocates from the state houses in the upcoming fights over where to cut in health care spending.