PHA-Exchange> Big Pharma on a mission to woo Democrats

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 from Bala <bala at haiap.org> -----
 Financial Times: 
By Stephanie Kirchgaessner in Washington

The pharmaceutical industry was in the enviable position two years ago of 
having the right friends in the right places in Washington.

Billy Tauzin, the Republican lawmaker, and Thomas Scully, who ran Medicare 
during President George W. Bush’s first term, were leaving their respective 
posts to lobby for the drugs industry after securing the addition of a pharma-
friendly prescription drug subsidy in the federal healthcare programme for the 
elderly.

Another ally in the Senate, Rick Santorum of Pennsylvania, had emerged as a 
powerful player in Congress and was considered a presidential hopeful.

The industry’s mirrored that of other big companies and trade associations 
that had strengthened their ties with the Republican majority by hiring only 
Republican lobbyists for top positions – a practice championed by Mr 
Santorum that was known as the “K Street project”.

Now the prospects of the industry’s giants have taken a turn. After spending 
an estimated $10m (£5.3m, €7.8m) on Republican incumbent candidates ahead 
of this year’s mid-term elections – Democrats received about $4.5m – no 
other sector is expected to face as hostile a reception on Capitol Hill after 
the Democrats take over in 2007.

Shares in US and European pharmaceutical companies tumbled in the days after 
the election, with Pfizer, Eli Lilly and Novartis each down 5 per cent or 
more. The New York Stock Exchange Healthcare Index recovered slightly last 
week after a sharp drop.

Nancy Pelosi, incoming Speaker of the House, who once accused Mr Tauzin of 
“selling seniors down the river” for $2m – the sum the Louisiana 
Republican was reportedly paid to join the association he now runs, PhRMA – 
says one of her priorities will be to give the government the power to 
negotiate Medicare drug prices.

Other lawmakers, including Henry Waxman, the representative, are expected to 
target the industry by calling hearings on issues ranging from marketing to 
drug safety. Congress is also expected to increase its scrutiny of the 
industry’s chief regulator, the Food and Drug Administration. The industry 
will face this harsh new reality without the support of Mr Santorum, who lost 
his re-election bid.





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