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Context of 'After November 7, 2006: Democrats to Push for Cheaper Drugs and Stricter Oversight of Drug Industry'

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Democrats, who will have control of both houses when Congress reconvenes next year, say they intend to push for legislation that will lower drug prices and tighten regulation of the pharmaceutical industry. They want to encourage the development of more generic drugs, allow imported drugs from Canada, investigate drug pricing and advertising, repeal legislation that limits vaccine manufacturers’ liability, and give the government the authority to negotiate lower drug prices for people on Medicare. [New York Times, 11/24/2006; Associated Press, 11/24/2006] In response, the drug industry begins hiring lobbyists with Democratic connections, with the hope of preventing the passage of these initiatives (see After November 7, 2006).

Timeline Tags: US Health Care

Oxfam publishes a report concluding that poor people in developing nations are dying needlessly because drug companies and the governments of certain wealthy nations are putting a higher priority on defending intellectual property rights than protecting human life. According to the report, the United States has used free-trade agreements and threats of sanctions to prevent countries from producing and distributing low-cost generic drugs in order to preserve the monopolies of large drug companies. Likewise, the drugs makers themselves are pushing countries to prevent the sale of cheaper drugs. “Pfizer is challenging the Philippines government in a bid to extend its monopoly on Norvasc, a [blood] pressure drug. Novartis is engaged in litigation in India to enforce a patent for Glivec, a cancer drug, which could save many lives if it were available at generic prices,” the Guardian reports. The Oxfam report says that efforts to block the poor’s access to affordable medicine undermines the five-year old Doha declaration, which sought to improve poor countries’ access to cheap drugs. “[R]ich countries have failed to honor their promises. Their record ranges from apathy and inaction to dogged determination to undermine the declaration’s spirit and intent. The US, at the behest of the pharmaceutical industry, is uniquely guilty of seeking ever higher levels of intellectual property protection in developing countries,” the report says. [Guardian, 11/14/2006; Oxfam, 11/14/2006 pdf file]

Entity Tags: United States, Oxfam

Timeline Tags: US Health Care

At a Pharmaceutical Research and Manufacturers of America (PRMA) board meeting, top executives from two dozen drug companies meet to work on a strategy to prevent the incoming Democratically-controlled Congress from passing legislation that would lower drug prices and tighten regulation of the industry (see After November 7, 2006). Their top concern is a bill they expect Democrats to push that would allow the government to negotiate lower drug prices for millions of older Americans on Medicare. Lobbyists for the industry concede that it is probable that such legislation will be passed by the House. But they say they are determined to have it killed in the Senate. If their efforts fail, and the Senate does pass such a bill, the drug industry believes that President Bush would veto it and that the veto would be upheld by the remaining Republicans in the Senate. Among those attending the meeting are Kevin Sharer, chairman of Amgen; Jeffrey B. Kindler, chief executive of Pfizer; Sidney Taurel, chairman of Eli Lilly; and Richard T. Clark, chief executive of Merck. [New York Times, 11/24/2006]

Entity Tags: Eli Lilly, Pfizer, Pharmaceutical Research and Manufacturers of America, Amgen, Sidney Taurel, W.J. (“Billy”) Tauzin, Jeffrey B. Kindler, Kevin Sharer, Richard T. Clark, Merck

Timeline Tags: US Health Care

The Pharmaceutical Research and Manufacturers of America (PhRMA) acknowledges it has funded a series of television advertisements in support of legislation primarily written by Max Baucus (D-MT), chairman of the Senate Finance Committee, to reform US health care. The television ads are part of an agreement between the Obama administration, Baucus, and PhRMA in June, where the organization agreed to various givebacks and discounts designed to reduce America’s pharmaceutical spending by $80 billion over 10 years. PhRMA then set aside $150 million for advertising to support health care legislation. More progressive House Democrats such as Henry Waxman (D-CA) are pushing for stiffer drug industry givebacks than covered in the deal. PhRMA is led by Billy Tauzin, a former Republican congressman. Until recently, the organization spent some $12 million on ads by an offshoot coalition called Americans for Stable Quality Care, and aired television ads such as “Eight Ways Reform Matters to You.” PhRMA’s new ads will specifically support the Baucus bill. Many are critical of the deal, with James Love of the progressive research group Knowledge Ecology charging, “Essentially what the US got was not $80 billion, but $150 million in Obama campaign contributions.” [New York Times, 9/12/2009] Investigative reporter Matt Taibbi agrees with Love, accusing the White House of colluding with Baucus and Tauzin’s PhRMA to orchestrate a “big bribe” in exchange for the Democrats’ dropping of drug-pricing reform in the Baucus bill. Taibbi writes that in June, White House chief of staff Rahm Emanuel met with representatives from PhRMA and drug companies such as Abbott Laboratories, Merck, and Pfizer to cut their deal. Tauzer later told reporters that the White House had “blessed” a plan involving the $150 million in return for the White House’s agreement to no longer back government negotiations for bulk-rate pharmaceuticals for Medicare, and to no longer support the importation of inexpensive drugs from Canada. Taibbi writes that the White House worked with Baucus and PhRMA to undercut Waxman’s attempts to give the government the ability to negotiate lower rates for Medicare drugs. PhRMA’s ads are being aired primarily in the districts of freshmen Democrats who are expected to face tough re-election campaigns, and in the districts of conservative “Blue Dog” Democrats, who have sided with Baucus, Obama, and PhRMA to oppose the Waxman provision in favor of PhRMA’s own provision, which would ban the government from negotiating lower rates for Medicare recipients. [True/Slant, 9/14/2009]

Entity Tags: James Love, Henry A. Waxman, Americans for Stable Quality Care, Abbott Laboratories, Rahm Emanuel, Pharmaceutical Research and Manufacturers of America, Senate Finance Committee, Obama administration, Medicare, Max Baucus, Matt Taibbi, Pfizer, Merck, W.J. (“Billy”) Tauzin

Timeline Tags: US Health Care

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