Industry news: Lilly's salary cap; Hatch takes hatchet to medical device taxThe flow of generic versions of Lilly's anti-psychotic drug Zyprexa and chemotherapy drug Gemzar is taking a bite out of sales and salaries, so much so that the company is freezing salaries for most of its employees, Bloomberg reported on Friday. The company's CEO and President, John C. Lechleiter Ph.D, is among those who will not be seeing a salary bump in 2012 and will retain his $1.5 million base salary. His overall compensation is valued at approximately $16.4 million, reports RTT news. The company saw overalls sales drop 2% in the fourth quarter.The biggest falloff was for the anti-psychotic Zyprexa, which saw sales plummet 44% for the quarter and 8% for the year.
Utah Sen. Orrin Hatch assailed a tax on medical devices such as artificial hips and knees as a job killer.The IRS announced the 2.3% tax Friday. It is expected to go into effect next year and raise $28.5 billion over the course of 10 years. Hatch said the tactic “is exactly the wrong thing under a weak economy. This is a tax on innovation and job creation that will ultimately stifle the development of life-saving medical devices with costs that will be passed on to consumers.” The tax is part of the Affordable Health Care Act. Hatch sponsored a bill January 25 to repeal the tax.