PhRMA PRESIDENT-ELECT IS ALAN HOLMER: D.C. ATTORNEY BRINGS INTERNATIONAL TRADE BACKGROUND, EXPERIENCE IN GOP LEGISLATIVE & EXECUTIVE BRANCHES TO ASSOCIATION

Alan Holmer will succeed Gerald Mossinghoff as president of the Pharmaceutical Research & Manufacturers of America July 15, the association announced April 17 following its annual meeting in New York City. Holmer, 46, currently heads the international trade practice in the Washington office of Sidley & Austin. He has been trade counsel to PhRMA for the past six years. While he has not had a high profile at the association, his connection should make it easier for him to move into the top job.

At least one of the senior members of the PhRMA staff has a long relationship with Holmer. PhRMA Senior VP-International Harvey Bale has worked with Holmer while the Sidley & Austin attorney was outside counsel. The two also worked together at the U.S. Trade Representative's office during the Reagan Administration.

Holmer's initial challenges will be to develop familiarity with the domestic health policy issues that are outside his current realm of experience and to establish a management team including a second-in-command/chief of staff and chief lobbyist. Both positions have been vacant at the association since the departures of top staff late in 1995.

The lobbying position will be particularly important for Holmer because he was not as familiar to the Washington representatives of the pharmaceutical companies as other short-list candidates. Because PhRMA works so closely with those offices on legislation and to effect coordinated strategies on Capitol Hill, Holmer will need to pick someone who can immediately fit well with that group.

Holmer himself has extensive experience pushing legislation on Capitol Hill. As deputy USTR under Reagan, he was responsible for bringing together congressional support for the 1988 trade bill and the U.S./Canada Free Trade agreement. He has testified over 50 times for Republican administrations before Democratically controlled congressional committees.

In the Administration, he was responsible for reporting to and building consensus in the cabinet-level Economic Policy Council. Holmer also acted as a liaison for the Administration with governors and state legislators. Holmer learned Capitol Hill procedures as a staff aide to former Sen. Packwood (R-Ore.) for seven years in the 1970s.

The July 15 official starting date could mean that Holmer may not face many early decisions on FDA reform legislation. The mid-summer transition presumably was set to permit Holmer to wrap up business with existing clients. The delayed starting date is one of the issues that the PhRMA search committee faced with Holmer as a candidate.

By Holmer's mid-summer start date, the pending FDA bills in the House and Senate either will have come close enough together to make final action possible or will be dead for the election year. Current best-case projections put a reform bill through the Senate and out of the House Commerce Committee by the end of May.

Mossinghoff, who is retiring after 11 years as PhRMA president, will remain affiliated with the organization until September 1997 as senior counsel for intellectual property matters. PhRMA does not have an in-house patent law expert, and Mossinghoff should be able to assist in that area during the changeover. Mossinghoff may pursue patent law work in private practice, probably in an "of counsel" role with a D.C. firm.

The choice of Holmer can be interpreted as an indirect compliment to Mossinghoff's tenure. There are many characteristics in the backgrounds of the two PhRMA leaders that are similar: both have previous government experience in Republican administrations from which they carry the title of ambassador; both are attorneys; and both were chosen for the PhRMA position in their late 40s.

Holmer is understood to have been a relatively late addition to the PhRMA search. His name was raised after an initial culling of candidates had occurred. In addition to representing a previously successful formula for a PhRMA president, Holmer also is understood to have rated high on his commitment to the industry.

The father of two children with cystic fibrosis, Holmer has a personal understanding of the importance of pharmaceuticals and pharmaceutical research. That personal connection may give more resonance to his representation of the industry.

Holmer has close ties to one major firm, Lilly. He has served as a trade counsel to Lilly. He is also a long-time political associate and college classmate (Princeton) of Lilly North American Pharmaceutical Operations President Mitch Daniels. The Lilly exec was a key Reagan political aide during his two terms; Holmer worked during the first Reagan Administration as deputy assistant to the President for intergovernmental affairs.

A familiarity with Lilly management could help during Holmer's initiation into the PhRMA job. Lilly President Sidney Taurel is chairman-elect of the association and a member of the executive committee. Holmer has not had previous association experience, but the White House staff work and his participation on top-level government committees may provide some background for dealing with a board of senior execs from major firms.

Holmer will work with a board that has some significant changes. American Home Products Chairman John Stafford, who has been a leading force on the board for over a dozen years, is stepping down with AHP President Fred Hassan taking his place. Hoechst Marion Roussel's Fred Lyons, who has been a leading figure on FDA reform and pharmacy issues, has been replaced by HMR President Richard Markham. Lyons will continue to serve on the board-appointed committee to monitor the reform legislation. Ciba CEO Doug Watson, also a long-time board member and head of state government relations, is being replaced on the board by Ciba Pharmaceuticals President James Callahan.