US healthcare bill already impacting biotechs

By Tim Dean
Thursday, 29 April, 2010

According to an analyst at Datamonitor, it's a bumpy road ahead for the life sciences and pharmaceutical industry in the United States as a result of the recently passed healthcare bill along with the 'patent cliff' due to arrive around 2011.

“So far, companies including Johnson & Johnson, Eli Lilly, Abbott, Amgen and Gilead have already given guidance on the effects that can be expected on their performance this year," said Tijana Ignjatovic, Healthcare Analyst at Datamonitor.

"For example, Johnson & Johnson estimates that its 2010 impact will be at the top of the range for the overall pharmaceutical industry, with an estimated $US400-500 million reduction in sales, or three per cent of the company's 2009 US pharma revenues."

According to Datamonitor, the impact will be a result of higher rebates on drugs sold through the US Medicaid programme. While the higher rebates are valid from January 2010, the increase in the number of insured individuals, which will offset the rebate, won't have an impact until 2014.

Furthermore, several high profile patents are due to expire over the next few years, opening them up for manufacture and distribution by generic outlets.

However, the US healthcare reform is still looking like good news for Australian and international biotechs, particularly the 12 year market exclusivity provision on biologics.

According to Ignjatovic, the healthcare bill is not expected to deter investment in biotechnology and, overall, is still a win for the life sciences industry.

Related News

SEQ koala population carries immunity to retrovirus

Koalas from a population north of the Brisbane River appear to have evolved a unique genomic...

RSV immunisation program for babies slashes hospital stays

An Australian-first study has demonstrated the effectiveness of immunisation against respiratory...

A targeted treatment option for psoriasis

New research from MedUni Vienna paves the way for the development of a therapy that not only...


  • All content Copyright © 2025 Westwick-Farrow Pty Ltd