Business As Usual: Amgen & A Gift From Washington

Here is an old-fashioned episode of horsetrading that suggests the nation’s capital is conducting business as usual, despite concerns about healthcare costs and federal deficits. Last month, language in the so-called fiscal cliff bill allows a delay to Medicare price restraints on a group of medications that will benefit one company, in particular. And that company also contributed generously to several US Senators who influenced the language. Specifically, the bill gives Amgen an extra two years to sell Sensipar, a pill that is used for kidney dialysis and generated $808 million in sales in 2011, without any government controls, The New York Times writes in an interesting piece. However, the move is expected to cost Medicare up to $500 million during that time period (see Section 632 in the bill here). How was this justified? Those who backed the delay say it was necessary to allow regulators to prepare for a pricing change. They included Senate Minority Leader Mitch McConnell, a Kentucky Republican; Montara Democrat Max Baucus and Utah Republican Orrin Hatch, who lead the Senate Finance Committee, the Times writes, adding that Amgen has contributed substantially to their coffers. How much? Since 2007, Amgen (AMGN) employee and political action committee gave $67,750 to Baucus, $59,000 to Hatch and $73,000 to McConnell, some of which was contributed at a fund-raising event that the biotech co-sponsored last month while the debate over the legislation was under way, a...
Source: Pharmalot - Category: Pharma Commentators Authors: Tags: Uncategorized Amgen Dialysis Medicare Sensipar Source Type: blogs