Obama Extends a Branch to the Biotech Industry
November 9, 2010
At the moment there is plenty of optimism regarding the biotech industry as firmer pricing and new products have improved sales and earnings trends this year. Recently the Obama administration pressed congress to revamp a research and development tax credit by increasing it by about 20 percent and make it permanent, according to Marketwire. The Pharmaceutical Research and Manufacturers of America, PhRMA, as well as the Advanced Medical Technology Association expressed support for the tax credit. The new healthcare reform bill could lead to significance ramifications for biotech companies. Over the next decade, the biotech industry is expected to lose $105 billion as result of the healthcare bill. Analyst consensus is that this will be partially offset by the additional 32 million Americans insured as a result on the bill. The Bedford Report examines the outlook for companies in the Biotechnology Industry and provides research reports on Gilead Sciences, Inc. and Biogen Idec Inc.