By Lisa Richwine
NEW YORK (Reuters) - The Democratic gains in the U.S. Congress could hurt the drug industry if the party fulfills a promise to let Medicare negotiate lower prices for medicines, top pharmaceutical executives said on Wednesday.
That is a key goal of Democrats who won control of the House of Representatives on Tuesday and had a chance at winning the Senate.
"It would not be good for the industry," GlaxoSmithKline Plc (GSK.L: Quote, Profile, Research, Stock Buzz) (GSK.N: Quote, Profile, Research, Stock Buzz) Chief Executive Jean-Pierre Garnier told the Reuters Health Summit in New York, referring to the government trying to bargain on drug prices.
"I am worried about it because it's not negotiation if you let the government take over the direct purchasing ... They have all the bargaining power," he added.
Investors also appeared concerned, sending shares of major drug companies down sharply in Wednesday trade even though many analysts and political experts predict Republican President George W. Bush will veto any attempt to give Medicare new bargaining power on behalf of its 43 million elderly and disabled patients.
Drugmakers are expected to use their lobbying muscle to fight the idea, which presumed House Democratic leader Nancy Pelosi of California has vowed to pass within the first 100 hours of the next session in January.
"I think that's price controls. I don't think that's a good idea," AstraZeneca Plc (AZN.L: Quote, Profile, Research, Stock Buzz) (AZN.N: Quote, Profile, Research, Stock Buzz) Chief Executive David Brennan said.
Bristol-Myers Squibb Co.'s (BMY.N: Quote, Profile, Research, Stock Buzz) interim chief executive, James Cornelius, said there "needs to be a strong policy debate if you're going to come in with lower prices about how one funds (research and development)." Continued...
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