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Pharmas May Rake In Extra Billions with Medicare Drug Plan

...Those figures reflect Prudential's estimates that Medicare drug plans will negotiate discounts amounting to only 5 percent of what the drug companies paid in rebates to Medicaid on those products.

An AstraZeneca spokesperson questioned the study's methodology, saying the profit estimate for Seroquel, a schizophrenia medication, was too high.

AstraZeneca gave no alternate figures.

A GlaxoSmithKline spokesperson wouldn't discuss projected earnings for Lamictal, a treatment for bipolar disorder.

A spokesperson for Lilly said the company expected only a "modest short-term benefit to sales" for Lilly's earnings per share could rise by 6 percent in 2006 just by escaping the rebates, the Prudential study estimates.

With US sales of $2.76 billion in 2005, Seroquel's increased Medicare profit could boost AstraZeneca's earnings per share by 8 percent, the report found.

Company policy prohibits Prudential analysts from discussing reports with non-clients, said company spokesman Jim Gorman.

Drafted by Drug Industry Lobbyists?

Tony Butler, managing director and pharmaceutical an...

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