Article: Big changes ahead for pharma market; FDA regulations may force drug companies to seek efficiencies in manufacturing, information tech.(Vertical Insight: Pharmaceuticals)

Byline: JUDITH NEMES

Pharmaceutical companies will be more prudent about where they spend money this year and beyond as they prepare for a big shift when the new Medicare drug benefit takes effect in 2006, industry observers say.

Still, drug companies are expected to spend heavily this year in a few key areas: improving information technology, making manufacturing processes more efficient and boosting corporate image through bigger advertising campaigns. Expenditures on capital improvements are also anticipated, thanks to new Food and Drug Administration (FDA) regulations.

With the new Medicare prescription drug benefit, pharmaceutical ...

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