Drug and device makers are likely to feel the effects of debt-cutting, experts say

08/9/2011 | Medical Marketing & Media

As lawmakers look for more ways to reduce federal spending, the FDA's budget is a likely target and "[t]hat is deleterious to the pharma industry, which relies on FDA to assure the integrity of its products," said Wayne Pines, president of regulatory services and health care at APCO Worldwide. Tax deductions on drug advertising and a ban on the government's ability to negotiate drug prices for Medicare and Medicaid might be changed as well. "The debt issue must be addressed, so expect continued pressure on drug pricing and even more debate about all tax options, including the tax deductibility of health care costs," said John Kamp, executive director of the Coalition for Healthcare Communication.

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