Broken promise by President Obama on parallel trade in pharmaceuticals

As candidates, almost all democrats have promised voters, in several elections, they will support parallel trade in pharmaceuticals from Canada and other high income countries. As elected officials, nothing happens. President Obama already has authority to permit imports of medicines, if he wanted to exercise it. But not only is the White House not fullfillinbg the promise to allow imports, it has promised the CEO of PhRMA and several big companies that they won’t allow parallel trade in the health reform bill.

Campaign Promise:

“Allow Americans to buy their medicines from other developed countries if the drugs are safe and prices are lower outside the U.S.”

 

Action as elected official:

White House Assures Drug Makers on Reimportation, Alicia Mundy, July 7, 2009, Wall Street Journal

 

As a presidential candidate, President Barack Obama endorsed re-importation, an idea the industry opposes. White House officials have told the industry if the larger health care bill passes, the cost savings will be so great that reimportation will be unnecessary, according to Billy Tauzin, president of the Pharmaceutical Research and Manufacturers of America.

Mr. Tauzin said major pharmaceutical chief executives attended the Tuesday meeting including Merck & Co.’s Richard Clark, Pfizer Inc.’s Jeffrey Kindler, Amgen Inc.’s Kevin Sharer, Abbott Laboratories’ Miles White and AstraZeneca PLC’s David Brennan. It wasn’t clear who attended from the White House side. A White House official confirmed the meeting took place but didn’t have immediate comment on what was discussed.

Sen. Bernie Sanders, an independent from Vermont, said he disagrees with any move to drop the reimportation idea. He has pushed to import drugs from Canada, where they are cheaper because of price controls. “I will fight for this,” said Sen. Sanders, adding that he intends to raise the matter with White House Chief of Staff Rahm Emanuel “first thing in the morning.”

More Cost Cuts Sought From Drug Industry, New York Times, Duff Wilson, July 22, 2009

On July 7, Rahm Emanuel, Mr. Obama’s chief of staff, and Mr. Baucus assured at least five pharmaceutical companies during a White House meeting that there would be no provision in the final health care package to allow the reimportation of cheaper drugs from Canada or elsewhere, according to Mr. Tauzin.

The industry’s message, Mr. Tauzin said, was, “Don’t put us in a big negative fight over this issue while we’re trying to help you pass something that would be good for the American public.”

The meeting included chief executives from Pfizer, Merck, Amgen, AstraZeneca and Abbott Laboratories.

“This time our industry has a seat at the table and our voice is being heard,” Richard T. Clark, Merck’s chief, said in a conference call Tuesday with stock analysts.

Final comment. Candidates who promise to allow parallel trade in medicines, to get votes and to compete with other candidates who have made the same promise, and then who don’t actually make it happen, are not as trustworthy as politicians who do what they say they will do.

Some earlier campaign promises:

Chicago Defender, August 11, 2004
Democratic Senate candidate Barack Obama and Republican rival Alan Keyes managed to agree on at least one thing Tuesday: Both support legalizing pharmaceutical drug imports to spare Americans the higher U.S. prices. At dueling news conferences, the Senate rivals were asked their views of reimporting prescription drugs, a cause Illinois Gov. Rod Blagojevich has championed. Both Senate candidates backed it, a surprise in the case of the conservative Keyes. The Bush administration frowns on it. “We need protection for our nation’s seniors, not protectionism for drug companies,” Obama said.

Uncategorized