UPDATE: Roche Sees Big Change From US Healthcare Reform Plans
March 10 2009 - 7:01AM
Dow Jones News
Roche Holding AG (ROG.VX) Chairman Franz Humer said Tuesday he
expects President Obama's plans to reform the U.S. healthcare
system will bring sweeping changes, but he also expects Roche to be
less affected than rivals by the anticipated changes.
Humer was speaking to shareholders at the company's annual
general meeting in Basel, Switzerland.
"Healthcare reform will certainly result in a fundamental change
of the dynamics of the U.S. market," Humer said. "We, with our
strategy that focuses on innovative drugs rather than mass-market
products, are markedly better positioned to cope with the changes
than many of our competitors," he added.
Among the challenges for the drug industry, he included
'parallel' imports. A parallel import is a non-counterfeit product
imported from another country without the permission of the
intellectual property owner. While this is already a frequent
practice in Europe, the U.S. market has so far been less exposed to
it, Humer said.
He doesn't expect Roche to suffer much from this development,
because the company's cancer products are - apart from foreign
exchange rate effects - being sold at the same price in the U.S. as
in Canada or Mexico.
Humer said he also expects generic copies of biotechnology
products to become a reality in the U.S. Unlike Europe, the U.S.
doesn't yet have a formal approval process for such drugs.
Biotechnology drugs are made from living cells, and therefore
more complicated to replicate than traditional drugs, which are
made with various chemicals.
Company Web site: http://www.roche.com
-By Anita Greil, Dow Jones Newswires; +41 43 443 8044 ;
anita.greil@dowjones.com