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Ill. not drug biz friendly? Try Fla.

A Florida biotech group takes out ads in Chicago to lure businesses from their cost-conscious governor.

KRIS HUNDLEY
Published December 17, 2003

When Illinois Gov. Rod Blagojevich proposed importing drugs from Canada for his state's employees and retirees, he may not have realized he was creating a marketing opportunity for Florida.

In half-page ads that ran this week in the Chicago Tribune and Chicago Sun-Times, a Florida biotech group contrasted Blagojevich's push for importing Canadian drugs and price controls with the Sunshine State's appreciation for profits.

The ad's message to Illinois biotech and pharmaceutical companies: "Come on down and warm yourself in a business climate supported by a state government that understands what you need to succeed."

While ads enticing companies to relocate are nothing new, the campaign by BioFlorida, a nonprofit trade group, is laser-targeted to drugmakers who may be feeling unappreciated in Illinois. In October, Blagojevich asked the federal government to allow Illinois to buy drugs from Canada, allowing the financially strapped state to save an estimated $91-million a year. The governor, a Democrat, also has criticized pharmaceutical makers who are restricting their supplies of drugs to Canada. He is seeking to have their products removed from the approved drug list for state employees and retirees.

Florida's governor, as the ad points out, is doing everything he can to encourage drug development, from spearheading $369-million for the Scripps Research Institute's Palm Beach expansion to training biotech workers.

"In Florida, we are blessed with a governor and state legislators who are embracing biotechnology and the companies that are pioneering it," the ad copy says.

Though the ad doesn't mention it, Bush also advocates a free-market solution to cutting Florida's drug costs. Under the Bush plan, the state gets modest discounts on Medicaid drugs; in exchange, drugmakers agree to teach Medicaid recipients how to stay healthy, reducing doctor and hospital visits. Though the Bush administration has called the 2-year-old program a success, a legislative report in April said the state could have saved $64-million this fiscal year by dropping the program and demanding bigger discounts.

Paul Hassie, president of BioFlorida, said the ads were intended to promote Florida rather than trash Illinois. "We're not expecting a biotech company to say, "I'm tired of this, I'm moving to Florida,' " he said. "We just want them to realize Florida is a player and that they ought to be looking at Florida when the opportunity arises for them to consider new locations."

Hassie, who said the ads were supported through membership dues, did not know if the campaign will be repeated or if other states will be targeted. He declined to say how much the Gainesville group paid for the ads.

In Illinois, meanwhile, a spokeswoman for the governor's office said Blagojevich's efforts to cut drug costs come in response to popular demand.

"He's responding to the needs of consumers at the same time he's the leader of a state facing its worst financial crisis in history, Abby Ottenhoff said.

But she quickly added that Blagojevich has no intention of trying to scare away health care companies such as Abbott Laboratories and Baxter International, both of which have headquarters in the state.

"The group that's sponsoring the ads is not taking into account the number of things the governor is doing to make Illinois a great place to have a business," she said.

- Kris Hundley can be reached at hundley@sptimes.com or 727 892-2996.

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