US election results mark the end of pharma-friendly politics

The pharmaceutical industry was severely rattled by the US mid-term Congressional elections. With both the House of Representatives and the Senate falling into the hands of the Democrats, pharmaceutical shares tumbled on the US stock market (Marketletters passim). Whilst stock prices slowly creep back to pre-election values, the real question is, what will be the long-term impact of the power change in Washington DC on the UK pharmaceuticals market?

It should be of no surprise that the Democrats have made the pharmaceuticals industry its primary target. Efforts to lower the prices of drugs resonate well with the aging American public.

Pharma also backed Republicans over Democrats by almost two to one in mid-term election campaign contributions and peppered its industry groups with former Republican leaders who helped secure government friendly reforms. Hungry from their mid-term election landslide, Democrats will be eager to capitalize on emotional issues like drug prices and safety to better position themselves for the 2008 Presidential elections.