Democrats to benefit some in U.S. health sector

By Kim Dixon and Lisa Richwine

NEW YORK (Reuters) - While Republicans vying for the U.S. presidency warn about Democratic plans for a "government takeover of healthcare," many companies in the sector see opportunities should a Democrat win.

Supporting cheaper versions of pricey biologic drugs and helping Americans without health insurance are among the benefits cited by executives this week at the Reuters Health Summit in New York.

The spiraling cost of health care is often named the biggest domestic policy worry in national polls.

Democrats back more expansive measures to boost coverage of the 47 million Americans currently uninsured and support greater us of generic drugs to curb costs.

"What Democrats are very likely to support is a national approach to the uninsured," said David Snow, chief executive at Medco Health Solutions Inc (MHS.N: Quote, Profile, Research, Stock Buzz). "Net-net for Medco, it's a good thing."

Medco was spun off of drugmaker Merck & Co (MRK.N: Quote, Profile, Research, Stock Buzz) in 2003 and sells pharmacy services to employers and the government, reaching 60 million people. Demand for its services would likely grow if more people were insured. Rivals include CVS Caremark (CVS.N: Quote, Profile, Research, Stock Buzz) and Express Scripts (ESRX.O: Quote, Profile, Research, Stock Buzz)

Executives, including big drugmakers more wary of government involvement, say the pressure to hold down health costs means the government's role is likely to expand under either party.

"Ultimately, I don't think the American public wants to spend more than more than 16 percent of their GDP (gross domestic product) on healthcare," UK's Shire Plc (SHP.L: Quote, Profile, Research, Stock Buzz) chief executive Matthew Emmens said.

Health care costs were about 16 percent of GDP in 2005, according to government data, but are projected to rise to nearly 20 percent of GDP by 2016.

Of the conventional wisdom that Democrats are worse for healthcare than Republicans, Emmens said: "I don't believe that."

Many pharmaceutical executives worry about pressure on prices coming from employers who provide health insurance and individuals who have seen their co-payments increase.

"Hopefully in the U.S. we'll be able to address that more with market forces and less through government intervention," Roche Holding AG (ROG.VX: Quote, Profile, Research, Stock Buzz) chief executive Franz Humer said.

One factor driving costs is so-called biologic drugs, man-made versions of human proteins that are more complex to make and often several times more expensive than chemical-based drugs.

Legislation creating a legal pathway to approve cheaper generic versions has stalled in Congress but more Democrats than Republicans back it.

One company that wants to sell generic biologics is Abbott Laboratories' (ABT.N: Quote, Profile, Research, Stock Buzz) spin-off Hospira Inc (HSP.N: Quote, Profile, Research, Stock Buzz). Hospira Chief Executive Chris Begley said companies seeking to cut health costs are poised to benefit in the current environment.  Continued...