The Obama effect
12 Feb 2009
Despite the highly-publicised recent economic gloom, moods were temporarily lifted on the day of US president Barack Obama's inauguration, when gatherings were held around the world to witness the historic event.
All eyes have been on the country's first black president ever since, to see what his first moves will be to tackle the US' considerable issues, not least the turbulence in the economy.
The president has put forth a multi-billion dollar American Recovery and Reinvestment Plan, aimed at sparking job creation and growth for the long term, which if implemented, could bring about developments that may offer a much-needed boost to US pharmaceutical firms and those looking to invest in the sector.
As part of his plans to breathe life into the economy, Mr Obama has pledged to equip thousands of colleges and universities with laboratories fit for 21st century science, something that may be welcomed by organisations focused on the research and development (R&D) side of the market.
"We'll provide new computers, new technology and new training for teachers so that students in Chicago and Boston can compete with kids in Beijing for the high-tech, high-wage jobs of the future," the president stated recently while unveiling his plans.
He went on to say that in his opinion, working towards economic recovery "means investing in the science, research and technology that will lead to new medical breakthroughs, new discoveries and entire new industries".
Such a stance may help to buoy the pharmaceutical sector, which, like all other industries, has been forced to respond to the happenings in global markets and seek out strategies to boost business and make it through the downturn.
Once sworn in, Mr Obama announced his intention to withdraw the Mexico City Policy, a move that frees up R&D companies that receive federal funding to carry out more activities relating to family planning, something that could offer support to pharma firms that operate within this area.
The president has also voiced his opinion on another R&D topic, that of embryonic stem cell research, with his views on this matter being outlined in a response to a question put to him last year by the Science Debate 2008 group.
"I strongly support expanding research on stem cells," Mr Obama stated, adding that more investment in this area could improve the US' ability to compete with other nations in the R&D sector.
This was welcomed by industry professionals, with James Douglas Engel, professor and chair of the department of cell and developmental biology at the University of Michigan Medical School, telling ABC that such research "offers the best hope and potential for some of the desperately needed cures for currently untreatable diseases."
He added: "If federal funds become available for this research it will hasten our goal of developing cures."
So it seems that the era of Obama, if he is successful in his plans to boost research developments and rescue the economy, may bring some benefits for pharmaceutical firms with operations in the US.
The pharma industry, along with many others, will now have to wait with baited breath to see if the president's economic stimulus package - which has been passed by the Senate after much anticipation - will achieve its aim of buoying markets and increasing the country's international competitiveness.
