PHA-Exchange> FW: [e-drug] The Real Cost of Drug R&D

Fri Aug 24 03:50:50 PDT 2001

Dear friends,

This is very important information for the negociations in the W.T.O.

Marcella De Smedt.
Expert of A.I.M. (Association Internationale de la Mutualité)
Clinical pharmacist § Adviser
Medical Direction

Haachtsesteenweg 579 1031 Brussel
Tel. 00-32-2 2464477
Fax 00-32-2 2464649
E-mail marcella.desmedt at cm.be

-----Oorspronkelijk bericht-----
Van: Willy Palm [mailto:willy.palm at skynet.be] 
Verzonden: donderdag 23 augustus 2001 15:06
Aan: Marcella De Smedt
Onderwerp: Fw: [e-drug] The Real Cost of Drug R&D

Marcella,

dit zal je wel interesseren: een article dat de R&D kosten van de
farmaceutische industrie enigszins relativeert.

Willy
----- Original Message -----
From: "info" <info at egagenerics.com>
To: "Willy Palm" <willy.palm at skynet.be>
Sent: Thursday, August 23, 2001 2:35 PM
Subject: FW: [e-drug] The Real Cost of Drug R&D

>
> WILLY
>
> AS PROMISED THE ARTILCE. THIS IS FROM E DRUG.PLEASE CONTACT HEM TO BECOME
A
> MEMBER
>
> Greg
> -----Original Message-----
> From: Robert Weissman <rob at essential.org>
> To: e-drug at usa.healthnet.org <e-drug at usa.healthnet.org>
> Date: 24 July 2001 07:56
> Subject: [e-drug] The Real Cost of Drug R&D
>
>
> >E-DRUG: The Real Cost of Drug R&D
> >-------------------------------------------------
> >[crossposted from Pharm-Policy with thanks; NN]
> >
> >July 23, 2001
> >
> >New Report Debunks Drug Industry Claims About the Cost of New Drug
> >Research and Development
> >
> >Second Report Documents Industry's Intense Lobby and Political
> >Contribution Campaign to Keep Prices and Profits High
> >
> >WASHINGTON, D.C. - The pharmaceutical industry spends about one-fifth of
> >what it says it spends on the research and development (R&D) of new
drugs,
> >destroying the chief argument it uses against making prescription drugs
> >affordable to middle and low-income seniors, a Public Citizen
> >investigation has found.
> >
> >The findings are contained in a Public Citizen report, Rx R&D
> >Myths: The Case Against the Drug Industry's R&D Scare Card.
> >
> >The report reveals how major U.S. drug companies and their Washington
> >lobby group, the Pharmaceutical Research and Manufacturers of America
> >(PhRMA), have carried out a misleading campaign to scare policymakers and
> >the public. PhRMA's central claim is that the industry needs
extraordinary
> >profits to fund "risky" and innovative research and development to
> >discover new drugs. In fact, taxpayers are footing a significant portion
> >of the R&D bill, which is much lower than the companies claim.
> >
> >"This R&D scare card is built on myths and falsehoods that are maintained
> >by the drug industry to block Medicare drug coverage and measures that
> >would rein in skyrocketing drug costs," said Frank Clemente, director of
> >Public Citizen's Congress Watch.
> >
> >Public Citizen based the study on an extensive review of government and
> >industry data and a report obtained through the Freedom of Information
Act
> >from the National Institutes of Health (NIH). Among the report's key
> >findings:
> >
> >§ The actual after-tax cash outlay - what drug companies really spend on
> >R&D for each new drug (including failures) - is approximately $110
million
> >(in year 2000 dollars.) This is in marked contrast with the $500 million
> >figure PhRMA frequently touts.
> >
> >§ The NIH document shows how crucial taxpayer-funded research is to the
> >development of top-selling drugs. According to the NIH, U.S.
> >taxpayer-funded scientists conducted at least 55 percent of the research
> >projects that led to the discovery and development of the five
top-selling
> >drugs in 1995.
> >
> >§ Public Citizen found that, at most, about 22 percent of the new drugs
> >brought to market in the past two decades were innovative drugs that
> >represented important therapeutic advances. Most new drugs were "me-too"
> >or copycat drugs that have little or no therapeutic gain over existing
> >drugs, undercutting the industry's claim that R&D expenses are used to
> >discover new treatments for serious and life-threatening illnesses.
> >
> >A second report issued today by Public Citizen, The Other Drug War: Big
> >Pharma's 625 Washington Lobbyists, examines how the U.S. drug industry
> >spent an unprecedented $262 million on political influence in the
> >1999-2000 election cycle. That includes $177 million on lobbying, $65
> >million on issue ads and $20 million on campaign contributions.  The
> >report shows that:
> >
> >· The drug industry hired 625 different lobbyists last year - or more
than
> >one lobbyist for every member of Congress - to coax, cajole and coerce
> >lawmakers.  The one-year bill for this team of lobbyists was $92.3
> >million, a $7.2 million increase over what the industry spent for
> >lobbyists in 1999.
> >
> >· Drug companies took advantage of the revolving door between Congress,
> >the executive branch and the industry itself. Of the 625 lobbyists
> >employed in 2000, more than half were either former members of Congress
> >(21) or worked in Congress or other federal agencies (295).
> >
> >· The industry's $20 million in campaign contributions and millions more
> >in issue ads attacking candidates opposed by the industry aided its army
> >of lobbyists in gaining access to congressional representatives.
> >
> >"The drug industry is stealing from us twice," Clemente said. "First it
> >claims that it needs huge profits to develop new drugs, even while drug
> >companies get hefty taxpayer subsidies. Second, the companies gouge
> >taxpayers while spending millions from their profits to buy access to
> >lawmakers and defeat pro-consumer prescription drug legislation."
> >
> >Rep. Pete Stark (D-Calif.), the ranking Democrat on the House Ways and
> >Means Health Subcommittee, added, "Not surprisingly, pharmaceutical
> >companies have been deceiving Congress and the American public for years.
> >I commend Public Citizen for exposing the industry's long-standing
attempt
> >to hide the truth about R&D spending."
> >
> >Sen. Paul Wellstone (D-Minn.), said, "This well-documented Public Citizen
> >report shows just how much the pharmaceutical industry exaggerates its
> >commitment to research and development and focuses instead on the bottom
> >line."
> >
> >Added Rep. Tom Allen (D-Maine), "Millions of our seniors have paid taxes
> >for decades and contributed to the development of new drugs. Now in their
> >retirement, they pay the highest prices in the world for these drugs. . .
> >. The public deserves better."
> >
> >Public Citizen calls on Congress to pass a Medicare-run prescription drug
> >benefit program with strong cost containment that guarantees affordable
> >prices for middle and low-income seniors. Copies of the reports can be
> >found at http://www.citizen.org/congress/drugs/R&Dscarecard.html and
> >http://www.citizen.org/congress/drugs/pharmadrugwar.html ### Public
> >Citizen is a nonprofit consumer advocacy organization based in
Washington,
> >D.C. For more information, visit www.citizen.org
> >_______________________________________________
> >Pharm-policy mailing list
> >Pharm-policy at lists.essential.org
> >http://lists.essential.org/mailman/listinfo/pharm-policy
> >
> >--
> >Send mail for the `E-Drug' conference to `e-drug at usa.healthnet.org'.
> >Information and archive
http://satellife.healthnet.org/programs/edrug.html
> >Mail administrative requests to `majordomo at usa.healthnet.org'.
> >For additional assistance, send mail to:
`owner-e-drug at usa.healthnet.org'.
>
>
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