Pharmaceutical sales in the U.S., the world's biggest market, will grow far less than originally forecast this year and are in for meager growth next year as economic turmoil and a lack of new products take their toll, according to a closely watched annual forecast. U.S. drug sales this year are expected to rise just 1% to 2%, to as much as $297 billion, according to IMS Health Inc. The consulting firm forecasts U.S. sales to rise another 1% to 2% next year. IMS a year ago forecast 4% to 5% sales growth for this year. The pharma lobby is speeding up the likely arrival of federal price controls and formulary restrictions as government tries to limit the inevitable runaway health costs by supporting Democratic candidates for office this cycle. That's a death sentence when pharmaceutical innovation already has a 10- to 20-year investment horizon. The real powers in Congress next year will be such pharma critics as Mr. Waxman, Pete Stark, Bart Stupak and John Dingell who all have no love for anything pharma does.

Money follows power, and obviously the drug makers believe they need to reposition themselves politically with the prospect of a Democratic Congress and Barack Obama in the White House. Industry campaign donations skewed about 3-to-1 in favor of the GOP over the last six election cycles. Now they're running about even, according to the Center for Responsive Politics. Some of the beneficiaries will play key roles in shaping legislation next year, such as Max Baucus, Chairman of Senate Finance, and Oregon Democrat Ron Wyden, a dominant voice on health policy.