Pre-Emption in the Drug Industry

Another big potential risk/cost for the drug companies is the threat of law suit due to their drugs having a negative impact on the people that use them. But - there is the possibility that that threat will soon be longer. Drug companies and the Bush administration have been pushing for the concept of "pre-emption", which is the notion that only the FDA should be allowed to regulate the drug companies - and not the courts. Accordingly, if a drug passes the over site of the FDA, a drug company should be immune from that point on to inspection. Given Merck's expected losses from Viox, as well as the damages that other companies have incurred from law suits, this could be a huge boon for the Pharmaceutical industry.
Drug Makers Near Old Goal: A Legal Shield