PhRMA Statement on Misleading Families USA Study of Advertising and Promotion

7/17/2002

From: Jeff Trewhitt, 202-835-3464, or Jackie Cottrell, 202-835-3467, both of PhRMA

WASHINGTON, July 17 -- The following is a statement by Richard I. Smith, vice president of policy and research for the Pharmaceutical Research and Manufacturers of America (PhRMA):

Families USA is using WorldCom accounting. The only way the group can get a number for promotion that is higher than pharmaceutical R&D spending is to disguise the operating costs of running a business in their figures. Even Families USA has so-called "administrative costs" like electric bills, rent and trash collection. The facts are very straightforward. Last year, PhRMA member companies spent $30.3 billion on new drug research and development. In contrast, according to IMS Health, the industry spent about $9 billion on promotion to consumers and doctors and about $10 billion on free drug samples. When Families USA attacks our promotional spending, they are really attacking the $10 billion in free drug samples that we give away each year to doctors who often use these free medicines to help needy patients. That's not very family-friendly.

We urge Families USA to channel its resources and energies to working with us to enact a meaningful prescription drug benefit under Medicare for America's seniors.

--- PhRMA Internet Address: http://www.phrma.org