PhRMA slams US President's fiscal year 2013 budget plan

Responding to US President Barack Obama's fiscal year 2013 budget proposals, Pharmaceutical Research and Manufacturers of America (PhRMA) president and chief executive John Castellani argues that, despite his many pronouncements to support innovation, advance biomedical research, promote job creation and control health care costs for seniors, this 2013 budget proposal flies in the face of these important goals.

Specifically, says Mr Castellani, proposed mandatory rebates in Medicare Part D are a short-sighted proposition that could destabilize the program and threaten hundreds of thousands of American jobs, noting: 'Recent research from the Battelle Technology Partnership Practice shows that staggering potential job losses would result from undermining the business foundations of biopharmaceutical companies. The report estimates that a $20 billion per year reduction in biopharmaceutical sector revenue would result in 260,000 job losses across the US economy. Government estimates show the Administration's proposals would have an impact of about this magnitude.'

He claims that Medicare Part D is working well for seniors, pointing out that, due to competition, costs continue to be far below initial projections, and this successful program should not be disrupted.