Alarmed at the prospect of Democratic control of Congress, executives from two dozen drug companies, including Eli Lilly and Co., met in Washington last week to assess what appears to them to be a harsh new political climate, and to draft a battle plan.
Hoping to prevent Congress from letting the government negotiate lower drug prices for millions of Americans on Medicare, the companies have been recruiting Democratic lobbyists, lining up allies in the Bush administration and Congress, and renewing ties with organizations of patients who depend on brand-name drugs.
A Medicare expert who works for House Democrats said he recently received three job offers in one day from the drug industry.
Many drug-company lobbyists concede the House is likely to pass a bill aimed at driving down prices, but they are determined to block such legislation in the Senate. If that fails, they are
counting on President Bush to veto any bill that passes. With 49 Republicans in the Senate next year, the industry is confident it can round up the 34 votes normally needed to uphold a veto.
Drug companies may be open to some changes in the Medicare drug benefit, but say they cannot accept price negotiation.
They began strategizing last week at a meeting of the board of the Pharmaceutical Research and Manufacturers of America.
Among leaders who attended the meeting were Sidney Taurel, chairman of Lilly; Kevin Sharer, chairman of Amgen; Jeffrey B. Kindler, chief executive of Pfizer; and Richard T. Clark, chief executive of Merck.
"It's all hands on deck," said Ken Johnson, a senior vice president at Pharmaceutical Research and Manufacturers of America, a lobbying organization for brand-name drug companies.
"It's like a hurricane warning flag. You don't know where it will hit. You don't know who will be affected. But everybody has to be prepared." ....
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