Drug Lobby Said to Mull Membership Cuts Amid Price Scrutiny
- Changes in lobby group’s rules would oust some smaller members
- PhRMA board said to vote on membership changes on Tuesday
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The pharmaceutical industry’s Washington lobbying group is expected to adopt new membership rules this week that will oust many smaller companies amid ongoing scrutiny of prescription drug prices in the U.S., according to people familiar with the matter.
The lobby group, Pharmaceutical Research and Manufacturers of America, or PhRMA, is proposing that member companies must spend $200 million a year on research and development, based on a three-year average. They’ll also have to have to show that their R&D spending amounts to at least 10 percent of their global sales, according to the people, who asked not to be identified because the matter is still private.