Bay Area Reporter - July 20, 2001
Jeff Getty, Survive AIDS Writers Pool

The report sent shock waves through the drug manufacturing sector and caused much consternation for the industry's spokesgroup, the Pharmaceutical Manufacturers of America (PhRMA). PhRMA had previously stated that drug prices were high because the profits were needed to develop new drugs and find cures for the dying. While the drug companies quickly issued rebuttals and denials to Families USA's findings, PhRMA was hard-pressed to prove otherwise. The numbers Families USA used in its report were gleaned from official drug company accounting documents submitted to the Securities and Exchange Commission.

In the AIDS community, consumers are used to paying ridiculously high prices for AIDS medications. For years it was believed that high prices were necessary so that new HIV drugs could one day be developed. In reality the profits taken from PWAs and their insurance companies have gone to pay for huge advertising campaigns and absurdly high executive salaries. At the same time, few new families of drugs are in development, with some companies opting out of the HIV-drug market altogether. While many PWAs have been very thankful and supportive of drug companies for stepping in and finding ways to extend life, some PWAs we have spoken with say they are tired of the all-pervasive saturation advertising in the HIV and gay communities.

Jennifer Laudano, Families USA's spokeswoman, said that the drug company mantra - high prices will mean more research - is really nothing more than a veiled threat to consumers to either pay the prices or suffer the diseases. "It [the drug companies' response] is really a scare tactic," she said. "It's 'you need us, and we are going to charge whatever, or we will stop trying to save your life.'" Laudano and her group have studied drug company pricing and the effect on seniors for several years now. She noted that the HIV community was also feeling the pain and burden of high drug prices.

Indeed, the drug manufacturers are once again relying on PhRMA to defend their position. In a statement by Jackie Cottrell, spokeswoman for PhRMA, regarding the Families USA report, the group returned to its usual position and stated: "The system works for patients. Americans, including the staff of Families USA, can be sure that whatever disease they or a member of the family has or will get, the pharmaceutical industry is working on a cure. Pray the companies always will be successful." Or in other words, pray that we do not stop producing what you and your family need to survive.

Laudano pointed out that drug company spending to protect industry interests now permeates society at several levels. The industry has mobilized a virtual army of employees and contracted with individuals who promote products through phony health fairs for women and seniors (Poz Expo for PWAs), nonprofit foundations such as the American Liver Foundation lobby groups who pour soft money into political campaigns and political front groups for industry interests such as Citizens for Better Medicare and industry-sponsored magazines and print media.

"Their people are everywhere. They have enough employees to be at most every press conference and public hearing that has to do with their products," Laudano said. Another tactic that Laudano mentioned was letter writing campaigns. Industry front groups such as PhRMA pay individual contractors up to $150 each for hand-written letters to senators and members of Congress. Of course the letters must be pro-drug company and look like they have come from a concerned citizen - the little guy.

The Families USA report appears to be a well thought out and researched document. PhRMA issued a flat denial of its authenticity but offered no reasons why the report might be mistaken. For the HIV community the news is not good. While drug companies are being pressured to provide cheap or free drugs for Third World countries, and the potential loss of intellectual property if countries produce their own drugs, more profits likely will be spent on advertising and political lobbying to protect pharmaceutical interests. Of course when one is earning $40 million-plus per year such as Pfizer's William Steere Jr., one might not want to see too much money diverted to risky research and development. The safer course to steer, as we have seen in AIDS, is to reformulate and over-promote the products that are already FDA approved.

At a recent drug company advertising conference, there was a presentation on how effective direct-to-consumer (DTC) drug ads can be. The speaker referred to the recent Viracept ad campaign. He noted that what was once a "last place" protease inhibitor was now in the #1 position thanks to a smart and aggressive advertising campaign. Of course almost everyone who takes Viracept will suffer severe diarrhea and may not be getting the best antiviral coverage. No matter. When life-saving drugs are treated like hair spray and mouthwash, how much longer can we trust such an industry to continue on with the good work of saving lives?

Visit Families USA at www.FamiliesUSA.org, or if you are interested in earning money writing bogus letters to politicians, and have not already sold your soul somewhere else, contact PhRMA at www.PhRMA.org.
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