Beverly Hills 1/16/2010 8:04:47 AM
News / Business

Drug Companies Threaten to Withdraw Support of Health Care Reform

Financial World News Update by Equities Magazine

The abandonment of a clause in the health care overhaul effort has caused drug companies to threaten to withdraw their support of President Barack Obama’s plan. The administration has reportedly decided against protecting brand-name biotech drugs from their generic rivals, infuriating the original producers.

An e-mail acquired by the Associated Press on Friday unveiled an internal conflict in which the president of the Pharmaceutical Research and Manufacturers of America informed board members that they could not lend their support to the bill without a 12 year buffer period for product protection. He advised them to contact anyone who would be involved in the conflict to let them know of the development.

The President and House Energy and Commerce Committee don’t see these demands as feasible and are heading the initiative to shorten the period to seven years.

Prior to this development, drug companies had endorsed the overhaul, imagining they could reap profits from the widened pool of people with access to health care.

 

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