Pharma Sets Spending Record Lobbying Congress
9 CommentsBy Ed Silverman // June 24th, 2008 // 11:01 am
The $168 million thrown at lobbyists amounted to a 32 percent jump over 2006, according to an analysis by the Center for Public Integrity, which was based on data obtained from the Senate Office of Public Records. In all, the group says that drugmakers have spent more than $1 billion lobbying the federal government over the past decade.
“As the biggest lobby on the Hill, the pharmaceutical industry wields tremendous influence that impacts everything from prescriptions to patents,” Bill Buzenberg, the group’s director, says in a statement. “The central point is that their massive spending has been highly successful, largely producing the political results the drug industry wants.”
The top issues lobbied in 2007 include blocking the importation of drugs, extending patents, obtaining greater access of US drugs in international free trade agreements, and preventing Congress from limiting DTC ads, according to the group. More than 90 percent of the spending was by 40 drugmakers and three trade groups — PhRMA, BIO and and the Advanced Medical Technology Association.
PhRMA led the drug industry trade groups in lobbying with close to $23 million spent in 2007, a 26 percent rise from 2006. Among drugmakers, Amgen led with $16.2 million, followed by Pfizer at $13.8 million. Other big spenders included Roche ($9 million), Sanofi-Aventis ($8.4 million), Glaxo ($8.2 million), and Johnson & Johnson Inc. ($7.7 million).
The political shift in Congress from Republican to Democratic control helped drive the record lobbying spending in 2007, the group maintains. After the Democratic sweep of the House of Representatives, several long-standing industry critics of the industry assumed leadership roles of powerful committees that pushed for greater industry oversight conducting hearings on safety, pricing and generics.
Dianne
Yes…Pharma is running things. Our civil rights are for sale, too. Soon, because of the lobbying efforts of the very rich and powerful drug industry, Americans, under the doctrine of FDA preemption, are likely to lose their right to sue a pharmaceutical company if they, or a loved one, are injured or die from a FDA approved drug.
This Fall, the Supreme Court will hear Wyeth v Levine. If Levine loses, Americans will lose their right to a judge and jury. See Sen Leahy’s comment blow:
“The FDA’s assertion that its regulations suddenly preempt all State common law actions is a blatant power grab. In a case where congressional intent should be the operative issue to determine preemption, it is unclear whether the Court will defer to Congress and not to the Bush FDA’s recent, unprecedented actions. What is not in doubt is that the Supreme Court’s decision in Diana’s case will have a lasting impact on the millions of Americans who use pharmaceutical drugs.”
- Remarks Of Chairman Patrick Leahy To The American Constitution Society
Obama and McCain aren’t talking about this; however, I’m pretty sure they’re aware of FDA preemption. This issue is not in the media. Why all the “hush-hush?”
Thirteen years ago, in the middle of the night, behind closed doors and tacked to the back of another bill, Michigan’s Public Act 249 (“the drug immunity law”) was written into law. The bill, cleverly positioned as a means of “tort reform” that would limit “frivolous” lawsuits, was presented by then governor John Engler. Written as a favor to the drug industry, the real goal was complete and total immunity from product liability.
The law resulted in the good people of Michigan being stripped of their civil right to hold a drug company accountable if they or a loved one were harmed or died from a FDA approved drug. Michigan is the only state in the country with such a law.
Bipartisan bills for rescission have been stonewalled by the Senate Judiciary.
The legislation has been kept quiet. Most Michiganders do not know it exists. Folks learn about the law when they’re in need of a lawyer because they or a loved one have been made ill by a drug.
Engler claimed that the Michigan “model” was intended to be the “Law of the Land.” To help pass the legislation, the drug industry infested Michigan with lobbyists who persuaded legislators to do the industry’s bidding. More help came from the Chamber of Commerce who provided billboards and glossy handouts that supported “tort reform” and discredited any politician who was against the industry’s agenda.
The lobbyists stay here. At times, reinforcements are sent in. On June 5, 2008, 400 descended upon the capitol. Their goal is to make sure our cruel, unjust law is never repealed.
So, here we are. Thirteen years later. Our Congress is also infested with lobbyists, and Engler’s dream, Michigan’s nightmare–soon to be the country’s nightmare–is coming to pass.
If anyone has a suggestion on how we can stop FDA preemption, please post it here. Meanwhile, write your representatives and senators. Thank you.
Margaret
Thanks for the word on Michigan’s “model”. The only “model” I am aware of, as several of my friends have been plaintiffs in their states over the death of a loved one by prescription drugs, is the “wrongful death cap.” These caps have been set in place by business interests, including medical associations and other lobbyests and deny to many families some measure of comfort for an industry that kills many, every year. With pre-emption, if it is approved, the cap will be zero. We will have the FDA to look out for our safety, though the FDA says this is Pharma’s job. Right.
Jack2
Ed,
Any info on what the medical insurance lobby spends? Maybe it’s outside the scope of this site, but I’m just curious. I feel like they ought to be even more concerned than pharma about post-election changes (not that pharma shouldn’t be concerned).
Bob Freeman
Jack2, I don’t recall the numbers but I do recall that HIAA is regarded as one of the most effective lobbying organizations in DC, more effective than PhRMA, among others. I wish I had a link.
Ed Silverman
Hi Jack2,
Off hand, I do not have that info but could attempt to obtain it. If I’m successful any time soon, I’ll let you know. Good question, by the way.
Regards
ed
CMC guy
Jack2 The OpenSecrets Site Ed pointed me to a while back may help dig out some data (Insurance listed but did not see/look for med insurance)
http://www.opensecrets.org/overview/industries.php
Pharma gets ripped for constantly on their lobby/funding efforts however looks like the Lawyers/Law Firms were the biggest contributors in 2008 to Congress. Unfortunately this seems to be way politics has gone so everyone who wants to be heard by their “representatives” is acting this way.
Justice in MI
CMC Guy et. al. - Opensecrets is a fascinating, useful site. If you are the voyeuristic type, you can even find out what people in your own zip code have donated….
I use both the pharma and law firm figures in my courses. You are right that law firms far outspend pharma in campaign donation total. But, last I checked, if one looks at lobbying dollars (as distinct from campaign donations) the industry appears to be only second to the Chamber of Commerce - which itself includes pharm companies. The AMA also way up there. Either way, as you suggest, it’s big and as you describe.
May also be worth keeping in mind that lawyers/law firms includes both defense/corporate law firms and “trial lawyers.” And many of the “trial lawyers” work for companies suing each other, as in Pfizer/Ranbaxy.
That said, the overall graphs re: Dems/Reps have been almost mirror images of each other (until the past year when pharma started to balance their contributions while law firms, as far as I know, have not). I have fun flipping between graphs on powerpoint - looks like blue white bars punching away at something. The Constant Gardner versus the King of Torts, in demonology terms.
Otherwise in the thread, Dianne is correct in noting that Michigan’s law is unique. We are the only state has had complete FDA preemption since 1995. We are (most likely) your future.
Former BP
Disgusting! These companies need to get back to the way it used to me - conduct solid R & D on new products that are designed to really help the patient. If they would stop DTC, lobbying, and committing acts that result in major fines, then they’d have plenty to spend on meaningful R & D.
Atlex
Just to be clear, does everyone know what goes into “lobbying dollars”? For the most part, it involves personnel costs, as well as rent and overhead for a DC office. Very little is spent on what most people think of as lobbying–parties, fancy trips, expensive dinners. Remember, both the House and Senate have very strict guidelines as to what can be accepted by members of congress or their staffs from any lobbyist.
To give you an example, I am not in Government Relations, but every time I analyze market research for use specifically by our government relations folks in conversations with congressional staff members, my time counts towards lobbying. Plus, many activities are not focused on members of congress but on federal agencies such as CMS.