US Senator seeks to overturn anemia drugs decision

WASHINGTON, Oct 19 (Reuters) - A U.S. Senator will introduce a binding resolution in a bid to overturn the federal government's decision to limit payments for Amgen Inc (AMGN.O: Quote, Profile, Research, Stock Buzz) and Johnson & Johnson (JNJ.N: Quote, Profile, Research, Stock Buzz) anemia drugs.

Sen. Max Baucus, a Montana Democrat who chairs the finance panel overseeing the Medicare health insurance program, will introduce the resolution on Monday, his office said on Friday.

At issue are payment limits set by the U.S. Centers for Medicare and Medicaid Services (CMS) in July for Amgen's Aranesp and J&J's Procrit, given to cancer patients. The limits were enacted after the release of studies suggesting the drugs are overused and may be linked to a higher risk of heart attack, stroke and death.

If binding resolutions are passed by the Senate and the House and signed by the president, Medicare would have to change its policy, according to Baucus' office.

Passage is far from certain though. CMS has been steadfast in backing the policy, and the U.S. Food and Drug Administration said this week that the limits were consistent with the drugs' labels.

Amgen and Johnson & Johnson argue that the new regulations clash with the drugs' FDA-approved labels.

The drugs are erythropoietin-stimulating agents, also known as ESAs or Epo drugs. Aranesp is Amgen's best-selling drug, with sales of about $4.1 billion in 2006. Last year's sales of Procrit were $3.18 billion. Use has fallen sharply this year amid safety concerns.

ESA's are among the biggest prescription drug costs for Medicare, the federal health insurance program for about 43 million elderly and disabled. (Reporting by Kim Dixon)