Pharma edges its political contributions between Dems and Republicans

According to the Center for Responsive Politics, Pharma edges its 2008 political contributions between Democrats and Republicans. This is a departure from the last 15 years where Republicans have always been favored. It is interesting to note that GSK, Abbott, Schering Plough and Novartis in that order continue to lean Republican while Johnson & Johnson and Roche make 2/3 of their contributions to Democrats.

While pro-business, former Bain Capital top exec, Matt Romney was an early favorite, McCain ambiguous statements toward Pharma, have had the industry hedge its bets toward Democrats. Obama slightly leads Clinton among Democrats.

Healthcare Policy will clearly continue to be high on the agenda of candidates in a year where recession fears and reality make voters very responsive to promises of better health coverage. We shoud therefore expect the debate to heat up and hope the industry can be pro-active in supporting realistic solutions.

Should Pharma vote for McCain, Clinton or Obama?

Traditionally, the Republicans have been more favorable to the Pharma Industry. So, is a McCain vote a no brainer in 2008? Maybe not:  Senator John McCain (AZ) casted the industry in a not-so-flattering light while discussing why Americans can’t import drug from Canada. Mitt Romney jumped in, “Don’t turn the pharmaceutical companies into the big bad guys.” McCain responded: “They are.”Mitt Romney, clearly the candidate with the best understanding of Healthcare and Pharma, has now suspended his campaign, in light of McCain triumph on Super Tuesday.

Let’s turn the table: are the Democrats still the bad guys for Pharma? The first Hillary Clinton Healthcare Plan when Bill was President, has left bad memories. Hillary’s plan in 2008 clearly spells out universal healthcare coverage but with freedom of choice for the insured. Obama is less specific but supports the same principles.

On drug pricing, all three McCain, Clinton and Obama are favoring government regulation. Even Republicans are likely to target drug prices under Medicare part D. For more on candidates position on healthcare, check  Healthcare’08 .

As a result, Pharma is playing a bi-partisan card, evolving from 2/3 donations in 2004 to the Republicans to 50/50 with the Democrats in 2008. This is a pragmatic approach, since Pharma is most likely to have to work with a Democratic President. Only a united and pro-active industry position to address real issues, including that of the uninsured, will save US Pharma from a European or Canadian-style Healthcare System and a rapid decline of the industry competitive position.

Is Japan Ready for Generic Drugs?

According to the December issue of the McKinsey Quarterly, the Japanese market may soon be ready for generic drugs. Generics represent 59% of the US pharmaceutical market volume but only 17% in Japan. Given the number of major drugs going off patent, the drug spending in Japan could be reduced by $ 26 billion. However, before this happens, both physicians and patients need to become more willing to discuss the generic option and generic prices have to drop to 20-30% of the brand versus only 50% now. Both makers of Generic and and those of Innovative Branded Pharmaceuticals stand to gain from this evolution.