David Brennan on deficit reduction plan

AstraZeneca CEO David Brennan, appearing this morning on CNBC's Squawk Box, commented on the portions of the White House's deficit reduction plan that would impact our industry:

CNBC: Pricing pressure in terms of healthcare reform, is it worse here? Are you more worried about operations in the United States or is it still better place here to develop drugs? You've already had some of the pricing pressures in Europe from what they've done; things that maybe we’re considering years ago.

Brennan: Pricing pressures in Europe are constant, I think it got a little bit worse in the last 12 or 18 months.

I think we've been optimistic about the U.S. market but up until the speech yesterday I think we probably saw ourselves as net positive. But some of the comments that were made yesterday don't really provide the kind of policy framework for integration there that we’re looking for, so we're just more concerned about it.

I don't know exactly where it's going, but if we put (larger) Medicare rebates in place, price controls, things like that, then this isn't as good a market as it used to be.

As we have noted previously, AstraZeneca believes the federal government must help create an environment that spurs innovation in the life sciences in the United States. This in turn will spur job growth while finding cures and treatments for the world's most deadly and debilitating diseases.

See PhRMA's statement on the issue here.