The biotech industry is beginning to assess what the impact of the new Obama administration is likely to mean for individual biotech companies.
A key concern for the industry is the likely financial implications of the Obama presidency on biotech companies, according to an article by SFGate.
What financial concerns are at issue?
While biotech companies are definitely concerned about the bad economy and the credit crisis, they are also concerned about an anticipated push for cheaper drug prices, which could potentially have a very detrimental impact on biotech companies, since any such increase could negatively affect the profits that biotech companies could potentially achieve on their drugs and would perhaps impact companies’ valuations as well.
Another concern for the industry is what will happen to the Food and Drug Administration under an Obama presidency, accoding to the SFGate. During the Bush Administration, Congress criticized the Administration for how the Food and Rug Administration was run–in particular, they viewed it to be "underfunded" and "ineffective." As Adam Feuerstein of the Street.com reported: "The agency is in turmoil. Morale is low, resources are scarce and too many drug approvals have been delayed at best, or worst, have become politicized." President-Elect Obama will presumably sink some money into the organization and try to take it in a new direction, which he may begin by choosing new leadership. According to SFGate and Feuerstein, a few of the names being considered include: Dr. Steven Nissen, a cardiologist for the Cleveland Clinic; Dr. Scott Gottlieb, who worked directly under Mark McClellan when he was FDA commissioner; and Janet Woodcock, a veteran agency official who is the favored choice of drug manufacturers.
One highly anticipated change by the new administration is the likely adoption of a new view on stem cell research, reported Yahoo News, which reported that Obama’s Transition Chief John Podesta indicated this weekend that Obama is currently reviewing President Bush’s executive order on stem cell research and may reverse that order fairly quickly.
As for other changes that might be in the works which would affect the industry, the Patent Baristas have provided an extended list of potential changes that we may see under the new administration, including but not limited to doubling federal funding for basic research over the next ten years, making the research and development tax credit permanent, and reforming the Patent and Trademark Office.
All in all, it seems clear that the new administration will bring "change" to the biotech industry; however, the jury is still out as to whether any such "change" will be for the better or for the worse. The industry is hoping–like the majority of Americans that voted for Obama on election day–that the "change" Obama will bring will be for the better.
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