The Democratic victory in seizing Congress for the first time in 12 years has cast a black cloud over the drug industry. That's because they're expected to introduce legislation that could lead to lower prescription drug prices, according to Jon LecCroy, analyst for Natexis Bleichroeder.
The Democrats, led by Pelosi, will try to amend Medicare Plan D, enacted at the start of the year, to include provisions for the government to negotiate directly with the drug makers, which could drive down drug prices.
But "any legislative changes to the Medicare prescription drug benefit are likely to be met with a veto threat from President Bush," Andrew Parmentier, an analyst for Friedman, Billings, Ramsey & Co., said in a research note.
And it's far from clear that the Democrats can muster the two-thirds vote needed in both chambers to override a veto.
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Drug prices and Medicare
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