The pharmaceutical industry is headed toward a crisis. Its successes in improving health and prolonging life have made drug therapy essential to health care. But in virtually every nation, price controls and other regulation have undermined the profit incentive, causing a massive shift in research and development from Europe to the U.S. Now a new wave of threats has emerged: more price controls, trans-shipment of drugs from low-priced nations to higher-priced ones (including from Canada to the U.S.), litigation by states and others over domestic drug pricing, legislative threats to pharmaceutical patents, and proposals to expand Medicare to reimburse drugs at federally controlled prices.

On March 18, an expert panel will address these issues in the context of Japan, which has never been very successful in the development of pharmaceuticals; Germany, which has lost its worldwide lead in the industry; and the U.S., which until now has been the model for pharmaceutical innovation. The luncheon keynote address will be given by Sidney Taurel, chairman and CEO of Eli Lilly. The session will include a question-and-answer period.