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Ron Cohen, Acorda Therapeutics CEO, on drug profits and how ObamaCare will impact his business.
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It's back to health care now so the new healthcare law forcing big changes across this sector including a Biotech.
Our next guest founded and runs Acorda Therapeutics maker of a multiple sclerosis drug in pure which is doing amazing things.
According CEO Ron Cohen joins us now.
Prime lessen -- here you were Thomas about -- and what it's doing helping people improve their walking.
The development of drugs going forward now is being challenged is -- and part of the problem will be if we go over this fiscal cliff and -- FDA funding.
It's a huge issue terrific.
Right now if we go over the fiscal cliff -- disproportionate.
Set of cuts is gonna happen in those areas that are not protected the FDA being one of them and we rely on a vigorous efficient FDA to get our drugs through as quickly as possible get them approved so that people can use them.
If this goes through the FDA budget will be cut by something like 350.
Million dollars that is going to cause.
A huge slowdown in their ability to help us get our drugs through and to do what they're supposed to do so -- that that's a big issue.
The other issue that you and I were just talking about what is the investment in new drugs we heard that venture capitalists are not coming.
To their medical device -- because of the excise tax -- saying they're slowing down now and the drug creation world as well.
-- they have been and part of that is been that FDA regulation was becoming inefficient enough.
That the time lines we're increasing more -- more it takes now about twelve or more years on average to get a promising drug to market assuming that it works.
-- the FDA has been concerned about it they've been working on it and we have some legislation passed by congress and signed by the administration this year.
Call today Asia that increases the efficiency of some of the processes in the FDA.
Up until recently venture capitalists were slowing down their investments because they felt they risks were too high.
They're starting to be more encouraged because of this increase efficiency but.
If the capital markets go south as they will in response to going over the fiscal cliff.
One of the first things are going to do is pull back from the riskier investments like Biotech and we're going to lose.
A generation of medicines that we all need coming out in the next several years.
Rights of -- east at 56 years now we're not gonna have the new drugs that we need that's how do you prepare for this other -- moving your country are your company out of the country.
What do you do how you preparing.
You know.
The way we are preparing is we are.
Increasing our efforts to speed our process is as much as possible now we we would do that anyway but this takes on new urgency.
Beyond that the truth is there isn't a lot we can do except hope that our political leaders.
Do the right thing for the country and the capital markets and make sure that we have an environment where we can continue to develop these drugs.
-- the fiscal cliff very well might be averted but obamacare is here to stay so that.
Medical device -- is -- to say anti Europe -- what you said earlier just this whole notion that it might be taboo industry that's here to stay now -- I think I don't know about a taboo industry.
I will say that as having touched industry got I have a I I guess a balanced view on the Affordable Care Act as a physician myself.
I have to say I'm pleased that thirty million more people or so we're going to have access to basic health care coverage I don't think.
You can have a civilized country without affording that -- citizens -- right away.
I'm supportive of that I think our industry with supportive of that.
On the other hand there are aspects that are disturbing for example there's a provision that I think many people don't know about it's called iPad be independent payment advisory board.
Which in fact is going to be an unelected group of people who are going to be charged with cutting cost sweet but without necessarily having a strategy.
There's all these unintended consequences unfortunately coming out of a violent Camry which we have more time to talk about -- -- -- Acorda Therapeutics think your being here my pleasure up -- listening to you when.
Talk for weeks and weeks a battle.
