Big Pharma Spends Big for Favors From Congress

Pharmaceutical Lobby Spent Big in 2007
Overall, 374 out of 435 members of the House and 91 out of 100 senators received donations from the pharmaceutical and health products industry.

By Todd Neale, Staff Writer, MedPage Today
June 25, 2008

WASHINGTON, June 25 -- The pharmaceutical lobby, Washington's largest, increased its spending by almost a third -- to $168 million -- from 2006 to 2007, an analysis showed.

Pharmaceutical companies and the Pharmaceutical Research and Manufacturers of America (PhRMA) have spent more than $1 billion over the past decade on lobbying activity, according to an analysis conducted by the Center for Public Integrity.

Add on another $21.1 million from medical device and other health product companies and their associations -- the Biotechnology Organization and the Advanced Medical Technology Association -- and the total came to $189.1 million on lobbying last year, up from $146.1 million in 2006.

The jump in spending most likely reflects the shift in political leadership as Democrats took control of both houses of Congress following the 2006 mid-term elections.

"Clearly our companies were faced with a lot of challenges on a lot of different fronts," said Ken Johnson, senior vice president of PhRMA. "That happens any time there's a change in the leadership in Washington."

He said that when new people with new goals take over leadership positions, "it takes time to educate them about a lot of our issues."

PhRMA was the single biggest spender in the big-spending group, pumping $22.7 million into that educational effort. Amgen was second at $16.3 million.

The additional spending appeared to be effective, according to the report, because congressional efforts to restrict direct-to-consumer advertising failed and the Prescription Drug User Fee Act and the Best Pharmaceuticals for Children Act -- both favored by the drug industry -- were reauthorized in the FDA Amendment Act of 2007.

The Prescription Drug User Fee Act "allows the FDA to collect funds -- so-called 'user fees' -- from the industry to employ additional drug reviewers and bring medicines faster to the market," the report said.

According to Johnson, "the increased fees under [the act] will allow the agency to expand drug safety monitoring, hire additional staff for post-marketing surveillance, and to generally modernize its information technology systems."

The Center for Public Integrity report stated that, according to a 2009 budget request, the FDA will collect $628 million in user fees, an increase of $79 million from this year.

Johnson denied that such a system creates a conflict of interest for the FDA.

"[The act] has allowed for the timely review of new medicines without compromising the FDA's strict and objective review process," he said.

"There are people that I like to refer to as professional critics," he continued, "but when those people find themselves ill they're glad that there's a medicine out there to help save their lives."

Overall, $6.8 million went to members of three committees responsible for regulating the industry, the House Committee on Energy and Commerce, the House Committee on Ways and Means, and the Senate Committee on Health, Education, Labor, and Pensions.

The pharmaceutical and health products industry is also pumping money into the presidential campaigns. And this year, for the first time ever, they're giving more money to Democrats than Republicans.

Information from the Federal Election Commission showed that the industry donated $7.4 million to Democrats and $7 million to Republicans through April 28.

The presumptive presidential nominees Sens. Barack Obama (D-Ill.) and John McCain (R-Ariz.) received $639,124 and $168,300, respectively, from the pharmaceuticals and health products industry through April 28.

Rep. John Dingell (D-Mich.), ($136,986), chair of the House Committee on Energy and Commerce, received $136,986 from the industry and Rep. Charles Rangel (D-N.Y.), chair of the House Committee on Ways on Means, got $134,250.

Overall, 374 out of 435 members of the House and 91 out of 100 senators received donations from the pharmaceutical and health products industry.

The CPI report was funded by the Nathan Cummings Foundation.