Republican Swing Expected To Boost Pharma Industry

The massive swing away from the Democrats to the Republicans in both the Senate and the House of Representatives is expected to be a significant benefit for the pharmaceutical industry. The fear of another health care reform battle next year diminished as the Republican victories grew, and both biotechnology and health care stocks rallied on the news.

After discussions with Newt Gingrich, who is slated to become the next Speaker of the House, White House chief of staff Leon Panetta said he felt a bipartisan consensus could be found on various matters, including health care reform.

For his part, President Clinton stressed he would not compromise on his convictions, adding that the Republicans are far short of the two-thirds needed to override any veto. Republican Senator Bob Dole, the next Senate Majority Leader, has said he plans to deal with Congressional reform to establish credibility with the voters before tackling health care reform and welfare issues.