The Other Drug War: Big Pharma Lobbyists: New Public Citizen Report
http://www.***.com/ {*filter*}/pharmadrugwar.html
The Other Drug War:
Big Pharmas 625 Washington Lobbyists
July 23, 2001
(Click Here for PDF Versions of the Report and Appendix F-The Revolving Door:
Drug Industry Lobbyists
and Their Former Positions in Federal Government)
(Click Here for the Press Release)
Executive Summary
This new Public Citizen report shows how the pharmaceutical industry fought
last year, like never before, against the looming threat that Congress and
President Clinton would provide senior citizens with drug coverage under
Medicare.
Worried that the bulk buying power of Medicare would lead to discounted prices
in the lucrative senior citizen market, the drug industry launched an
unprecedented blitz of lobbying, campaign contributions, and so-called "issue"
ads to help its political allies and attack its enemies.
The bill for that barrage recently became public with the availability of all
lobby disclosure reports for the year 2000. Using these lobbying reports, along
with data on the industrys other political spending, "The Other Drug War:
Big Pharmas 625 Washington Lobbyists" shows the following:
The drug industry spent $262 million on political influence in the 1999-2000
election cycle: $177 million on lobbying, $65 million on issue ads and $20
million on campaign contributions.
The industry hired 625 different lobbyists last year to buttonhole lawmakers
or more than one lobbyist for every member of Congress. Unlike data on
contributions and campaign ads, this comprehensive information on lobbying has
recently become available (most lobbying details for the second half of 2000
didnt become available from Congress until May 2001 and no organization has
analyzed the data as thoroughly as Public Citizen).
The bill for this team of lobbyists in 2000 alone: $92.3 million a $7.2
million increase over what the industry spent for lobbying in 1999. Brand name
drug companies spent $90.0 million, generic drug companies spent $2.3 million.
Drug companies took advantage of the revolving door between Congress and other
branches of the federal government and the industry. Of the 625 lobbyists
employed in 2000, more than half were either former members of Congress (21) or
others who previously worked in Congress or in other federal government
positions (295).
The drug industry spent more (based on available data) on lobbying and other
political persuasion than any other industry in 1999-2000.
The drug industry lobbyists were well-connected: 33 served as Chief of Staff to
members of Congress; 11 others worked for the powerful House Ways and Means
Committee, which has jurisdiction over a Medicare drug bill; eight others
worked for the key Senate Judiciary Committee, where drug patent law is
crafted.
In addition, six worked for the Bush I administration; five worked for former
House Speaker Newt Gingrich (R-Ga.); four worked for former Senate Judiciary
Chairman Orrin Hatch (R-Utah); five worked for current Senate Health,
Education, Labor and Pensions Committee Chairman Edward Kennedy (D-Mass.); four
worked for former Senate Majority Leader Trent Lott (R-Miss.); and three worked
for current Senate Finance Committee Chairman Max Baucus (D-Mont.).
The drug industry lobbyists primarily worked against a Medicare prescription
drug benefit and bills that might moderate rising drug prices. Public
Citizens lobbying database shows that drug industry lobbyists worked most on
bills pertaining to a Medicare drug benefit, mentioning the issue 2,542 times
in last years lobby disclosure reports. Pricing issues which included
patent and drug re-importation legislation were mentioned 2,403 times on
disclosure reports.
In part, these lobbyists gained access to members of Congress and their staff
members, thanks to an aggressive campaign of political contributions ($20
million in the 1999-2000 election cycle) and TV ads ($65 million in 1999-2000)
that often supported Republican candidates and attacked Democratic candidates.
The industry made $20.1 million in direct contributions to candidates and party
committees in the 1999-2000 election cycle, with 59 percent of that coming in
huge soft money donations, often of $100,000 or more. Seventy-six percent of
all drug industry contributions went to Republicans.
In 2001, the drug industry continues to expand its influence. The drug industry
contributed $625,000 to the Bush-Cheney inaugural, and campaign contribution
reports for the first half of 2001, which are just becoming available, show
that the industry has dumped at least $1.4 million in soft money into party
committee coffers already this year.
The industry also continues to use the revolving door between Capitol Hill and
K Street to its advantage. Newly registered drug industry lobbyists in 2001
include former aides to ex-House Speaker Newt Gingrich (R-Ga.), new Senate
Finance Committee Chairman Max Baucus (D-Mont.), and new Senate Health,
Education, Labor and Pensions Committee Chairman Edward Kennedy (D-Mass.).
Introduction
The drug industry has much to protect in Washington, D.C. mainly because
the industry receives so many favors and privileges from the federal
government. The federal government has conferred on the industry monopoly
patents and patent extensions, tax credits worth billions of dollars a year,
and research subsidies for both the most medically important {*filter*} and also the
top-selling ones.
The industry responded to this coddling by raising the average prescription
price 10 percent last year.1
Not surprisingly, the drug industry has come under attack by senior citizen
groups and large employers who have felt the pinch of rising drug prices. These
groups want drug prices and industry practices such as patent extensions
that keep lower-priced generic {*filter*} off the market reined in.
In turn, the drug industry has worked hard to fight off any proposals that
might moderate its prices and profits. That fight was carried out, in large
part, by an army of well-connected lobbyists in Washington, D.C.
And it was successful the industrys tax breaks, research subsidies,
monopoly patents, prices and profits remain unscathed.
The full bill for that barrage recently became public with the availability of
all lobby disclosure reports for the year 2000 (lobby disclosure reports
typically lag four-to-five months behind the years end).
The bottom line which is detailed in this report is staggering. The
drug industry spent $262 million on political persuasion in 1999-2000. Based on
available data that appears to be more than any other industry.
Who Didnt Lobby for the Drug Industry?
The drug industry was very good for Washingtons "K Street" economy last
year. One hundred and thirty-four firms were paid to lobby by the drug
industry; and 55 different lobbying firms earned at least $100,000 from the
drug industry in 2000. (Public Citizen defines the drug industry as
pharmaceutical and biotechnology companies and their trade associations; the
two share increasingly similar political agendas on research, intellectual
property, drug benefit and pricing issues.)
The industry employed 625 different lobbyists in all and spent $92.3 million on
lobbying in 2000 a $16.8 million, or 22 percent, increase since 1997. (See
Table 1 and Appendix A)
