Pharmaceutical Official Warns of Price Controls

By Wolfe, Lou Anne | THE JOURNAL RECORD, June 16, 1994 | Go to article overview

Pharmaceutical Official Warns of Price Controls


Wolfe, Lou Anne, THE JOURNAL RECORD


If health care reform includes price controls on medicine, the impact on daily life could be greater than most people realize, the senior vice president of a leading pharmaceutical corporation said Wednesday.

The types of price controls proposed in the Clinton health care plan would stifle research and development of new drugs, warned John D. Borgia, senior vice president of human resources and administration of Bristol-Myers Squibb Co.'s pharmaceutical group.

"The hope for curing diseases like Alzheimer's and cancer lies in future pharmaceuticals, those being researched right now," he said. "On average, it takes almost 10 to 12 years to get a drug to the marketplace, and it costs about $350 million.

"So my company and others are making bets now and spending a lot of money to research compounds that won't be around until the year 2000," he said. "If there's price controls at that time, it's starting to affect the decisions that are getting made relative to research, and that's not good."

Although the words "price control" are not used in the Clinton proposal, Bristol-Myers views three of the plan's aspects in that light, Borgia said.

"One is a global budget, where they fix an amount that can be spent, and if you run out of money, that's all you can spend. That's going to result in price controls," he said.

Another provision would "set up advisory boards in the health and human services area that are going to decide on the reasonableness of a certain price," Borgia said. "We don't think that should be left up to a bureaucratic group."

The third aspect would give authority to the secretary of the U.S. Department of Health and Human Services to decide whether a product could be included on a formulary, based on the secretary's feelings on whether the price seemed excessive, he said.

"That's very discretionary. We don't think the people will stand for that," Borgia said. "I don't want somebody in Washington arbitrarily saying whether or not that's on the formulary. We think the market should decide that."

This type of price control would inhibit research, he said. "We've seen that in other countries around the world, where people are not making investments in research because they don't think the government is going to put it on a formulary or allow the market to set the price," Borgia said.

"And that's risky. People are not going to invest in our companies to do that."

Borgia said his company appreciated the president and first lady for bringing the health care issue to the forefront. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Pharmaceutical Official Warns of Price Controls
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.