[Ip-health] Financial Times: Big Pharma on a mission to woo Democrats

[Thiru Balasubramaniam]

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[ Picked text/plain from multipart/alternative ]
Big Pharma on a mission to woo Democrats

By Stephanie Kirchgaessner in Washington

Published: November 19 2006 20:05 | Last updated: November 19 2006 20:05

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=E2=80=99s 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=E2=80=99s 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 =E2=80=93 a
practice championed by Mr Santorum that was known as the =E2=80=9CK Street
project=E2=80=9D.

Now the prospects of the industry=E2=80=99s giants have taken a turn. After
spending an estimated $10m (=C2=A35.3m, =E2=82=AC7.8m) on Republican incumb=
ent
candidates ahead of this year=E2=80=99s mid-term elections =E2=80=93 Democr=
ats received
about $4.5m =E2=80=93 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 =E2=80=9Cselling seniors down the river=E2=80=9D for $2m =E2=80=93 the s=
um the Louisiana
Republican was reportedly paid to join the association he now runs,
PhRMA =E2=80=93 says one of her priorities will be to give the government t=
he
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=E2=80=99s 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.

=E2=80=9CClearly, it is a new day. After the election, we woke up to a new
world and I think you will see industry-wide actions that will reflect
that new world,=E2=80=9D says Ken Johnson, senior vice-president at PhRMA.
=E2=80=9CThere will be a renewed emphasis on making new friends and reachin=
g
out to Democrats, and especially pro-business Democrats,=E2=80=9D he says.

The industry has already recruited at least one high-profile Democrat
to help it make inroads with the incoming majority party. John Breaux,
the former senator and Patton Boggs lobbyist who was also involved in
the passage of the Medicare provision, told the Financial Times he was
working with clients in the industry on strategies for the upcoming
Congress, including spending a =E2=80=9Cgreat deal of time=E2=80=9D with ed=
itorial
boards explaining the positive attributes of the Medicare prescription
drug benefit.

Steve Jenning, a Democratic drug lobbyist at Capitol Health Group, says
the industry is seeking lobbyists who maintained =E2=80=9Csome semblance of=
 a
relationship with the minority=E2=80=9D to gain influence, not only with
rank-and-file Democrats on important congressional committees but also
with the new leadership =E2=80=93 Ms Pelosi and Harry Reid, incoming majori=
ty
leader in the Senate.

Given the barbs the industry has traded with Ms Pelosi, in particular,
Mr Johnson says it will =E2=80=9Ctake some time to heal=E2=80=9D the =E2=80=
=9Cold wounds=E2=80=9D.

But for all the emphasis some lobbyists pin on hopes of making new
friends in the Democratic caucus, others privately admit that the
Democrats=E2=80=99 narrow victory in the Senate means the industry is not i=
n
dire straits. Instead of reaching out to Democrats, says one senior
lobbyist, the drug industry will simply have to ensure it has 41 votes
in the Senate to block harmful legislation, instead of the 60 votes
they had been seeking in a friendly Senate.

=E2=80=9CThe Senate is a killing chamber, it always has been. The game you =
are
going to play is, =E2=80=98how do I stop that from happening?=E2=80=99=E2=
=80=8A=E2=80=9D the lobbyist
says.

But Mr Breaux disagrees with that strategy. =E2=80=9CI would do more than t=
hat
=E2=80=93 not just play defence, play offence and send a positive message a=
bout
what they [the pharmaceutical industry] do and why they do it. We have
a good story to tell,=E2=80=9D he says.

Mr Breaux=E2=80=99s task may be made easier by a recent changing of the gua=
rd
at several big drugmakers, including Pfizer, the world=E2=80=99s largest.
Democrats may be more willing to lend an ear to chief executive Jeffrey
Kindler than former chief executive Hank McKinnell, who was a large
donor to the Republican party.

Records collected by the Center for Responsive Politics show that Mr
Kindler donated $10,200 in this election cycle. The beneficiaries were
all Democrats.


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Thiru Balasubramaniam
Geneva Representative
CPTech
voice +41.22.791.6727
fax +41.22.723.2988
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thiru@cptech.org
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