Healthy Skepticism Library item: 723

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Publication type: news

Lueck , S .
Tauzin Is Named Top Lobbyist For Pharmaceuticals Industry: Departing Congressman Is Former Head of Panel That Oversaw Drug Sector
THE WALL STREET JOURNAL 2004 Dec 16

Full text:

Departing Republican Rep. Billy Tauzin, who stepped down in February as chairman of the U.S. House committee with jurisdiction over drug-industry issues, was named head of the industry’s main lobbying group.

As president and chief executive of the Pharmaceutical Research and Manufacturers of America, the 61-year-old Mr. Tauzin becomes the industry’s point man as it tries to fend off efforts in Congress to legalize the importation of cheaper prescription drugs from Canada and other countries and counter legislation or regulation that would squeeze drug-company profits. He also assumes one of the highest-paid lobbying jobs in Washington, succeeding Alan Holmer. Mr. Tauzin’s salary is thought to be in the $2 million range. He declined to comment.

Drug prices are likely to persist as a major political issue over the next few years, particularly as the Bush administration writes the rules for a Medicare drug benefit that goes into effect in 2006. Although its products are often celebrated for the lives they save, the industry’s image has been tarnished by anger at drug prices, which represent a growing portion of Americans’ medical spending, and by safety problems that led to the withdrawal of Merck & Co.‘s blockbuster painkiller Vioxx.

Already, Mr. Tauzin is emphasizing a positive message that centers on the importance of medicines to patients, in part by talking about his recent battle with intestinal cancer, which he called a “Lance Armstrong experience.”

The self-described “Cajun Ambassador to Congress,” didn’t seek re-election this year after serving 13 terms as a congressman from Louisiana. As chairman of the House Energy and Commerce Committee, Mr. Tauzin was heavily involved in crafting the prescription-drug bill. His son, Billy Tauzin III, just lost a bid to assume his seat in the House.

Ethics rules bar Mr. Tauzin from lobbying Congress for a year but he is free to lobby the administration, including Medicare officials. Yesterday, he called Iowa Republican Charles Grassley, who is chairman of the Senate committee in charge of Medicare, to tell him about his new position. He said it would “take some time” for PhRMA to determine how active he will be on Capitol Hill.

On the Medicare benefit, the drug industry has been pressing for the government to make sure private plans that offer the coverage include a wide variety of medicines. It is important that the new benefit “maintains as much choice for patients and physicians as possible,” Mr. Tauzin said in an interview.

PhRMA first approached Mr. Tauzin about the job in January, he said. Democrats and watchdog groups criticized his negotiations with the trade group as inappropriate and called on Mr. Tauzin to resign his chairmanship. Yesterday, he dismissed the flap as “pre-election politics,” saying there was “a lot of ill feeling left over after the last session.”

In February, he halted negotiations for all jobs because he found out he had cancer, he said. He had aggressive treatment and now his health is “excellent,” he said.

It’s not uncommon for powerful government officials to leave for private-sector jobs, or to nab lucrative positions lobbying on issues they used to oversee. The pharmaceuticals industry, which faces criticism of everything from the cost of its products to drug safety, has been keen to line up former lawmakers. Former Republican Rep. James Greenwood of Pennsylvania, who was chairman of the Energy and Commerce investigative subcommittee, is slated to become head of the Biotechnology Industry Organization next month.

In an interview, Mr. Tauzin and Abbott Laboratories CEO Miles White, the incoming chairman of PhRMA’s board, said the group will keep trying to block drug importation. “It’s not wrong for Americans to want to stretch a dollar,” Mr. White said. “But we need to solve this problem here in the U.S.,” through increasing access to health insurance and discounts from drug makers, Mr. White said.