2007 unfolds with Orange County healthcare eyes cast toward Washington and Sacramento.
Democrats are set to take control of both houses of Congress come Jan. 4. Party leaders have said a rewriting of the Medicare drug benefit to allow negotiation of lower prices from drug companies is a priority.
Prescription Solutions, a Costa Mesa-based unit of UnitedHealth Group Inc., is a key player in the Medicare drug benefit world.
Democrats also have talked about getting more stem-cell research funding. OC has a small stem-cell sector, which includes businesses such as PrimeGen Therapeutics Inc., California Stem Cell Inc. and Novocell Inc., all in Irvine.
At the state level, a bill from state Sen. Don Perata, an Alameda Democrat, would require businesses and their workers to contribute up to $7 billion in funds to provide health coverage.
The plan is sure to draw fire from business. Gov. Arnold Schwarzenegger opposed an earlier, unsuccessful universal healthcare bill but has spoken more softly about Perata’s legislation.
The year should also see new products and changes at OC’s healthcare companies.
Allergan Inc., the Irvine drug maker, is entering 2007 as a power in the medical cosmetics field. Allergan is set to put its promotional and marketing muscle behind several products, including Juv & #233;derm, a lower face filler that’s used with flagship Botox to smooth out wrinkles, as well as breast implants, which are returning to the U.S. market after a virtual absence in the past 15 years.
Beckman Coulter Inc., the Fullerton-based maker of medical testing gear, will be looking to improve its cash flow in 2007 and beyond, after posting improved financial results in 2006.
Drug maker Valeant Pharmaceuticals International starts 2007 with a new corporate base,Fluor Corp.’s former headquarters in Aliso Viejo,after many years in Costa Mesa. Valeant officials describe the move as a way to improve its balance sheet and distance itself from its days as ICN Pharmaceuticals Inc.
A final trial for Viramidine, Valeant’s next-generation hepatitis C drug, also could be on the horizon. Viramidine has been a subject of speculation among company watchers, mainly because of mixed results during earlier trials.
For employers, 2007 appears to be a second straight year of modest hikes in the premiums they pay for their workers’ healthcare. Local employers are expected to pay 7.7% more for their healthcare premiums in 2007, down from this year’s 8.4% raise and increases of 10% to 19% in the past four years, according to Chicago-based human resources company Hewitt Associates Inc.
OC’s healthcare startups could continue to attract venture capital, though it may be difficult to top this year’s funding. Through the first three quarters of this year, local healthcare companies have received some $148 million in venture funding, according to the MoneyTree survey from Pricewaterhouse Coopers LLP, Thomson Venture Economics and the National Venture Capital Association.
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PERSON TO WATCH: JAMES MAZZO
Jim Mazzo, chief executive of Santa Ana-based Advanced Medical Optics Inc., enters 2007 with a few bumps that need to be smoothed out.
Mazzo and his team could face fallout from a late November recall of nearly 3 million bottles of its Complete MoisturePlus contact lens solution after bacteria was found in three batches made in China.
The company’s shares have taken a hit after it warned about sales and profits next year. And it stands to lose some Asian business for good, Mazzo said.
Along with contact lens solutions, Advanced Medical makes eye surgery devices, the bigger part of its business.
Mazzo said he expects Advanced Medical to gain in some of its other businesses in 2007, including what he calls “refractive eyewells,” or replacement lenses used in cataract surgeries.
As for vision correction laser devices, Mazzo plans to get Advanced Medical’s gear into more chains and increase the number of pricier “custom” laser eye surgical procedures, he said.
,Vita Reed
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HOSPITAL TO WATCH:UCI MEDICAL CENTER
Expect the University of California, Irvine’s Orange teaching hospital to make news in 2007.
The key reason: the expected naming of a permanent chief executive. The hospital hasn’t had a permanent leader since Ralph Cygan resigned in January. He stepped down after a liver transplant scandal and remains on UC Irvine’s School of Medicine staff.
Maureen Zehntner, UCI Medical Center’s chief operating officer, has served as interim chief during for the time being.
A search is ongoing. But it appears that UCI Chancellor Michael Drake is more focused on finding a vice chancellor for health services to oversee the hospital and the School of Medicine.
UCI expects the vice chancellor role to be filled by mid-January. The university has sent its recommendation to the Board of Regents.
After that, the university will turn its attention to filling the medical center chief executive’s role. Whoever gets the top position will have a big job after the liver transplant woes.
They’ll also oversee ongoing construction on a patient tower, which is set to open in 2008.
,Vita Reed
