The Drug Industry can break out the champagne - and continue realizing the payoffs on their purchased support in Congress and the Bush Administration. The industry makes an extra $100 billion annually by overcharging for drugs in the US compared to average European or first world prices. A mere one percent of this set aside for lobbying, influence buying and contributions provides a billion dollar war chest to stymie reforms.
On May 7th, the Senate finally allowed the long overdue cheaper drug imports into the US, but only with a rider that made the whole enactment fruitless.
This rider is the requirement that the Secretary of Health (HHS) certify that the imported drugs are safe, which of course he won't do (at least when he is part of the Bush Administration.) This safety provision is an obvious excuse since many drugs are imported into the US by drug manufacturers under FDA oversight with no such certification requirement. See for example this long-standing refutation: http://democrats.senate.gov/dpc/dpc-new.cfm?doc_name=fs-109-1-73
Disallowing cheaper imports complements the other element that allows higher drug prices in the US - the government neither able nor willing to directly negotiate the prices of drugs that it pays for. The official logic for that policy is even more absurd (i.e., that negotiations are tantamount to price controls) and deserves a separate discussion.
After 2008 a Democratic President and a filibuster-proof Democrat controlled Senate / Congress may finally manage to bring down drug prices. But don't count out the possibility of the drug industry using its largesse to buy enough Democratic support to preserve the status quo. Jack Abramoff (who bought off lawmakers for years) is gone, but not the culture and system that enabled him to thrive.