By Jonathan Chen
According to the Financial Times, President Barack Obama has said that the FDA could be a candidate for reform, as it'sill-equipped to handle biotechnology and advances in medicine. This could be potentially beneficial for biotech names going forward.
“I've gotten a lot of commentary about the fact that ... essentially their model was designed for the kind of medical devices you see in museums,” the president said yesterday during a panel discussing jobs and competitiveness.
“So that would be an area where [we should be] getting a group to think strategically about how ... [we design] these regulatory bodies so that they are up to speed and more responsive to a dynamic economy,” he said.
Jeffrey Immelt, chairman of the panel and CEO of General Electric (NYSE:GE) echoed these sentiments. “We've got some appetite for that around the table,” he said.
The Obama administration wants to increase the FDA's 2012 budget by 33% to approximately $4.3 billion to better compete globally for job creation.
This could potentially be profitable for names like Amgen (NASDAQ:AMGN), Biogen Idec (NASDAQ:BIIB), iShares NASDAQ Biotechnology Index ETF (NASDAQ:IBB) and smaller biotechs such as Arena Pharmaceuticals (NASDAQ:ARNA).
Disclosure: No position