PhRMA Seeking New Chief Lobbyist; Christy To Leave Association This Spring

PhRMA is seeking a new chief lobbyist to replace Senior VP-Federal Affairs James Christy, who is leaving the association in two months.

The Pharmaceutical Research & Manufacturers of America has engaged the Russell Reynolds search firm to help in the recruitment effort. Christy will explore opportunities that are opening up in light of the Presidential transition process after leaving the association, PhRMA said.

The recruitment effort comes at an awkward time, with the introduction of President Bush's "Immediate Helping Hand" senior drug assistance program serving as the kick-off for renewed legislative debate over a Medicare outpatient prescription drug benefit (¹ ).

However, PhRMA noted, there is a growing consensus that legislative action on Medicare is unlikely early in the session (² ).

A particular challenge to the association lobbying effort is negotiating the rift within the membership over Medicare tactics.

While there is broad agreement within PhRMA about the need to address senior drug coverage and the importance of using private sector approaches, there appears to be little consensus on details.

The sharpest divide is between companies like Merck, which wants to push for a comprehensive private sector benefit, and Pfizer, which sees interim plans using block grants or tax credits as the most expedient route to expanding coverage.

PhRMA's response to the introduction of the Bush "Helping Hand" proposal illustrates the limited leeway the association appears to have to speak for the industry.

PhRMA released a two paragraph statement applauding the introduction of the proposal and saying "we look forward to reviewing the details."

It is "important that legislation be enacted this year, preferably in the context of overall Medicare reform," the association added.

The replacement for Christy will be PhRMA's third chief lobbyist during the tenure of President Alan Holmer.

The first was Barry Caldwell, a former aide to Sen. Specter (R-Pa.) who was one of Holmer's first recruits in 1996. Caldwell announced his resignation from PhRMA in 1999 and recently joined Cigna.

Christy joined PhRMA a year ago from TRW, where he was VP-government relations. He was a familiar face to the pharmaceutical industry lobbying community from his previous work as minority counsel on the Energy & Commerce Committee from 1981 to 1984.

The departure is the second announced by PhRMA in a week. The association's number two executive, Exec VP Judy Bello, is also leaving in the spring. PhRMA does not plan to replace Bello (³ (Also see "PhRMA VP Bantham Is Association's Number Two Exec; Bello Leaving" - Pink Sheet, 29 Jan, 2001.)).

The transition in the PhRMA staff occurs after another round of mergers within the industry.

The mergers affect the level of commitment by the members towards association-level actions in two ways: (1) the decline in the number of active members exerts some budgetary pressure as dues payments are phased out; and (2) as individual members become larger, they may be more likely to pursue internal government relations efforts independent of the association.

Looking back on the 2000 Medicare debate, PhRMA counts its successes primarily in the form of potentially harmful legislation that has not been enacted.

The association was blamed by some industry lobbyists for failing to respond appropriately to a reimportation rider attached to a House appropriations bill by Reps. Coburn (R-Okla.) and Crowley (D-N.Y.). Some PhRMA members learned only after the amendment passed that its scope was broader than personal imports.

PhRMA has another opening on the government relations staff to fill: Federal Affairs Manager Josephine Robinson is joining the White House staff.