Financial world tonight : pharmaceutical shares affected by Clinton administration.

The Clinton Administration is proposing health care reform, so over the past year pharmaceutical share prices have fallen. However, since they have not announced drug price controls, shares like Wellcome are now rising. As the population ages, drug use increases and government costs increase. The government is targetting drugs firms to reduce its costs. Consequently, companies are increasingly producing 'over-the-counter' drugs, to cut out the middle-man. Companies are also merging. Glaxo is in a joint venture with Wellcome. The most successful companies will have the best-differentiated products. If companies cannot afford research, the losers will be the patients.