PhRMA CEO Search On Hold; Tauzin Will Wait On Decision

Rep. Billy Tauzin (R-La.) has suspended discussions with the Pharmaceutical Research & Manufacturers of America to become the trade association's CEO, his office said Feb. 26.

Tauzin's representatives broke off negotiations with PhRMA the week of Feb. 23 at his request, his office said. Tauzin now says he does not intend to make a decision on future opportunities until after he leaves Congress.

Tauzin's candidacy for the association job drew negative media attention because it followed closely on the passage of the Medicare prescription drug benefit.

Tauzin stepped down as chairman of the Energy & Commerce Committee effective Feb. 16 to begin negotiations in earnest with PhRMA (¹ (Also see "PhRMA Close To Deal With Tauzin; Changes In Reg Affairs, PR Line Up" - Pink Sheet, 16 Feb, 2004.), p. 25).

Rep. Joe Barton (R-Texas) was confirmed as his successor Feb. 26 in a House resolution approved by unanimous consent. Democrats are understood to have threatened to use the Barton confirmation to stage a protest of the industry- and Republican-backed Medicare bill. After Tauzin ended negotiations with PhRMA, the Barton resolution passed without controversy.

PhRMA's options for the near term appear limited, leading to speculation that the association will simply wait until Tauzin feels the timing is more appropriate.

Sen. John Breaux (D-La.), one of a handful of strong Democratic Medicare bill supporters, would be another obvious choice for PhRMA to consider if it wants to consider a different "big name" for the job (² (Also see "PhRMA CEO Search Will Take Several Months; Holmer Leaving On High Note" - Pink Sheet, 19 Jan, 2004.), p. 17). However, the open courting of Tauzin would make it difficult for PhRMA to change candidates now.

Alternatively, the publicity surrounding the negotiations with Tauzin may make the association return to its historic preference for a behind-the-scenes manager to head the staff.