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PhRMA Vows To “Re-Shape” Policy Debate; Will Reach Out To Critics

Executive Summary

The Pharmaceutical Research & Manufacturers of America plans to make peace overtures to some of its critics within the healthcare sector as part of a new image strategy heading into 2003

The Pharmaceutical Research & Manufacturers of America plans to make peace overtures to some of its critics within the healthcare sector as part of a new image strategy heading into 2003.

PhRMA will "seek common policy agendas and collaboration with other members of the health care delivery system, including current critics willing to drop their anti-industry activities and to repair some of the very significant damage they have already done," the association declares in a statement of principles understood to have been adopted by the board during its December meeting.

"It is time for health care providers to unite in developing solutions within our current health care system in order to keep the need for quality patient care at the forefront of the debate," PhRMA's principles statement declares.

The association document does not identify specific groups it intends to approach.

The retail pharmacy sector may be one likely area for peace overtures. Both sectors have a common interest in encouraging wider use of pharmaceutical therapy, but they have often been on opposite sides of policy debates over pricing.

The PhRMA policy principles were drafted in response to what the association calls an "unprecedented effort" by "anti-industry coalitions to portray the research-based industry as a source of problems for the health care system."

The Blue Cross/Blue Shield Association has been at the center of most of the coalition efforts PhRMA is responding too. As such, it is presumably included in the list of critics that the trade association would welcome a better relationship with - but the ill-feeling between the groups probably runs too deep for an immediate rapprochement.

"Our objective is to improve the environment for consideration of health care and pharmaceutical policy issues by (1) discouraging continuation of attacks against our industry based on falsehood and caricature and (2) refocusing policy debate on improving our health care system for the good of patients," the principles declare.

PhRMA vows it will not shy away from controversy. "It is important to recognize that working to redefine the current debate will often entail generating controversy." PhRMA will be "proactive rather than reactive and vigorously take the initiative in framing the issues."

However, the association will "not employ tactics of falsehood, caricature, or personal attacks," the principles declare. "We will base our proactive, agenda-setting work on legitimate issues and data."

The association will be prepared to "enlarge the scope of the debate," provided that "we raise legitimate issues based on truthful data" and remain "consistent with PhRMA's views and policies."

The association is pledging to support the campaign with "all of our tools - policy, legal, advocacy and communications."

The resources that PhRMA has at its disposal are quite significant. The association's annual operating budget is understood to be in the $120 mil. range. Estimates of spending on off-budget advertising campaigns supported by the membership would roughly double that figure.

The PhRMA principles end with an acknowledgement that the association cannot rely on image work alone in the policy field.

"Responding to anti-industry coalitions through an aggressive, proactive campaign is intended to improve the legislative and media environment. It is not intended as a substitute for other necessary actions by the pharmaceutical industry, including addressing any valid policy issues raised by others."

The principles statement was drafted by a PhRMA working group authorized by the board in October.

The association signaled its intent to take a more proactive approach to shaping the policy environment when it named Mark Merritt as its new head of public affairs (1 (Also see "PhRMA’s Badge Of Merritt: AAHP Exec Joining Rx Association As Head Of PR" - Pink Sheet, 23 Sep, 2002.), p. 12).

PhRMA President Alan Holmer fleshed out some of the details of the PR side of the new approach during recent industry presentations (2 (Also see "PhRMA Plans PR “Offense” In 2003 To Support Effort To Remove Access Issue" - Pink Sheet, 25 Nov, 2002.), p. 5).

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