US Election's effects on Drugs Companies

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Obama’s Nasty Effect on Pharmaceutical Companies

By Charles Delvalle

Some of the most solid opportunities in the stock market are those that happen because of politics. Let’s face it, the government controls billions of dollars and could make or break industries. The effect an Obama presidency could have on Pharmaceutical companies is one you should be well aware of.

As many of you may know, Barack Obama (and democrats in general) is in favor of importing medicines from overseas, allowing the government to negotiate lower prices with drug companies, and increasing the use of generics. Sounds good for us, but not for big pharmaceutical companies.

First, if the use of generics increases, that means big pharmaceutical companies will make less sales. Second, drug companies charge Americans up to two times more for medicine than European or Canadians. If they have to cut those profits in half because the U.S. negotiated lower prices, that means they receive less profits. If they receive fewer profits you can be sure that their stock prices will fall.
So do yourself a favor and stay away from pharmaceutical companies until after November 11.

Adopted from Investors Daily

The 2008 Election: What does it mean for drugmakers?
February 6, 2008
By Maureen Martino

The winner of the 2008 election will be faced with making key decisions on a number of issues important to drug developers. Questions as to whether there will be more federal funding for stem cell research, a faster path for biogenerics, or a change to the structure of the nation’s healthcare system will have to be addressed by the next president, and how they tackle those issues will have serious repercussions for the industry. Here’s a look at the front-runners’ stance on several topics vital to the biotech and pharmaceutical industries.

Barack Obama supports:

• Reimportation of drugs
  
• Greater generic drug use by Medicare, Medicade, ect
  
• Establishing a government institute for comparative research between drugs.
  
• Allowing the government to purchase prescription drugs in bulk to reduce costs.
  
• Universal healthcare
  
• Embryonic stem cell (ESC) research

Hilary Clintion supports:

• Doubling NCI and NHC funding
  
• Increaseing the number of patients involved in cancer clinical trials.
  
• A pathway for biogenerics
  
• Lower prescription drug costs and universal health care
  
• Giving Medicare the power to negotiate prescription drug prices
  
• Stricter control of drug advertising
  
• ESC research

John McCain supports:

A pathway to approve biogenerics

An increase use of generic drugs

Reimportation of drugs

Allowing the government to negotiate lower prices for prescription drugs for the Medicare Part D program

ESC research