Pharmaceutical Federal Lobbying Spending Flourishes

WASHINGTON, April 2, 2007 — Pharmaceutical manufacturers and their trade groups spent a record $155 million lobbying the federal government and its agencies from January 2005 to June 2006, according to a Center for Public Integrity report based on data obtained from the Senate Office of Public Records.
 
During that time, the drug industry heavily — and successfully — lobbied against Congress' revisiting a provision in the Medicare Prescription Drug, Improvement and Modernization Act of 2003 that barred the federal government from negotiating on Medicare drug prices. Also on the lobbying agenda were protection of lucrative drug patents and prevention of the importation of lower-priced Canadian drugs.
 
In a CBS “60 Minutes” segment that aired Sunday night, Steve Kroft used data provided by the Center to examine how the pharmaceutical industry influenced Congress to pass the Medicare prescription provision, resulting in record prices for prescription drugs.
 
Since 1998, the top 20 drug companies, their subsidiaries and two industry trade groups have spent more than $650 million on lobbying. During this same time period, the industry’s top trade group, the Pharmaceutical Research and Manufacturers of America (PhRMA), spent $104 million on lobbying. In 2005, sales for the top companies represented more than a quarter trillion dollars of the U.S. prescription drug market.
 
The prowess of the industry’s lobby, which outnumbers members of Congress two to one, has caught the attention of such groups as the National Women’s Health Network and its program director Amy Allina. “We are certainly dramatically outspent by [the pharmaceutical industry]” she said. “You look at the number of lobbyists — we are up against an army.”
 
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CONTACT: Steve Carpinelli (202) 481-1225
 
The Center for Public Integrity is a nonprofit, nonpartisan Washington, D.C.-based organization that does investigative reporting and research on significant public issues. Since 1990, the Center has released more than 300 investigative reports and 15 books. It has received the prestigious George Polk Award and more than 20 other journalism awards and 16 finalist nominations from national organizations, including PEN USA and Investigative Reporters and Editors. In April 2006, the Society of Professional Journalists recognized the Center with a national award for excellence in online public service journalism for the fifth consecutive year. In October 2006, the Center also was honored with the Online News Association’s coveted General Excellence award.

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