Mr. President, I come to the floor today to announce the introduction of the Medical Innovation Act, which is a commonsense proposal that could dramatically increase our Nation's investment in…
Mr. President, I come to the floor today to announce the introduction of the Medical Innovation Act, which is a commonsense proposal that could dramatically increase our Nation's investment in lifesaving medical research.
During much of the 20th century, America made significant investments in this area through the National Institutes of Health, and it has been a remarkable success. We have transformed medicine across America and around the world. NIH support helps train each new generation of scientists and develop each new generation of medicine. NIH-supported discoveries often get picked up by small, creative, nimble biotechnology companies, which in turn get picked up by large pharmaceutical companies, which in turn sometimes result in wildly successful blockbuster drugs. Each of these blockbuster drugs brings in more than $1 billion a year for the drug companies, and each one transforms lives.
Nearly everyone in Congress supports increased funding for NIH, but for 10 years the NIH budget hasn't even kept up with the pace of inflation. Why? Because nobody wants to step up and find a way to pay for it.
It is time to break the stalemate. The Medical Innovation Act would increase NIH funding without raising taxes and without stealing support from other critical programs. Instead, support would come from blockbuster drug companies--only those that relied on government- supported research to generate billions in sales and only those that break the law and enter into major settlement agreements with the government. In such cases, the government settlements would go forward as they normally do, but the offending company would also be required to reinvest a relatively small portion of the profits it has generated as a result of taxpayer-supported research and put that money right back into the NIH.
We celebrate the accomplishments of our pharmaceutical industry-- especially the industry's billion-dollar blockbuster drugs. These drugs have literally transformed the treatment of high cholesterol, diabetes, HIV, asthma, rheumatoid arthritis, breast cancer, colon cancer, and leukemia. They help Americans live longer, healthier lives. But we also know that blockbuster drugs don't just appear overnight as if by magic. Rarely do they result from a single giant company's individual genius.
I agree with Republican Senators Alexander and Burr, who say in a report released just this morning:
[I]n many cases, the research leading to the discovery and
development of these products has been advanced, funded, or
enabled in some way by NIH.
Drug companies make great contributions, but so do taxpayers.
The big drug companies are making billions as a result of these investments, but over the last 10 years a few of our wealthiest drug companies have been caught making money a second way--by skirting the law. These companies are not getting swept up in minor paperwork mistakes. They are not victims of overly eager regulators. They have been caught defrauding Medicare and Medicaid, withholding critical safety information about their drugs, marketing their drugs for uses that aren't approved, and giving doctors kickbacks for writing prescriptions for their drugs.
Between 2007 and 2012 the world's largest pharmaceutical companies paid over $13 billion in fines and settlements. Despite those numbers, it is clear that for the biggest drug companies this is simply a cost of doing business. In fact, several of the biggest drug companies have been caught breaking the law, have paid a fine, and then have broken the law again. And why not? Even the biggest pharmaceutical settlement ever--a $3 billion penalty for withholding life-threatening safety data and engaging in illegal marketing practices--accounted for less than 10 percent of what the company made selling those drugs. In fact, the day the settlement was announced, that company's stock price actually went up.
It doesn't have to be this way. The Medical Innovation Act would serve
double duty--requiring more accountability from the biggest drug companies while giving medical research the support it deserves.
This isn't a tax; it is simply a condition of settling to avoid a trial in a major case of wrongdoing. If a company never breaks the law, it will never pay. If an accused company goes to trial instead of settling out of court, it will never pay. It is more like a swear jar. Whenever a huge drug company that is generating enormous profits as a result of Federal research investments breaks the law, it has to put some money in the jar to help fund the next generation of medical research.
Since we announced this proposal, we have seen an outpouring of support from hospitals, doctors, patient groups, and research universities. All of them want to break the stalemate on NIH funding and get back to the business of saving lives.
We have also heard some grumbling from the army of lobbyists that works for some of the biggest drug companies--companies that would prefer not to pay a bigger penalty when they break the law. If they have better ideas for ending this congressional stalemate and getting more money into NIH, I am eager to hear them.
These lobbyists have also claimed that there is ``no logical basis'' for asking these companies to pay up when they break the law. Well, I disagree. If a company that is making literally billions of dollars as a result of taxpayers' NIH investments turns around and engages in allegedly illegal conduct and wants to settle to make the case go away, that seems like a pretty logical basis for asking them to invest a little in the next generation of medical breakthroughs.
Lobbyists have also written that the Medical Innovation Act might create ``unnecessary litigation.'' Well, it is illegal to defraud Medicare. It is illegal to pay kickbacks to doctors. It is illegal to hide safety data from the FDA or manufacture drugs in dirty, contaminated facilities. Our biggest and most successful drug companies make billions of dollars by inventing treatments and improving the public's health, and when they do, we applaud them for it. But if they want to avoid unnecessary litigation, then they should follow the law. If they don't want to put a dollar in the swear jar, then stop swearing.
I don't kid myself. I know how difficult it is to get things done in Washington, and I understand that a handful of powerful actors with money and power likes things just the way they are and will fight any effort to change. But even if a few of the biggest drug companies don't like it, I am hopeful that we can build support for this idea because the Medical Innovation Act is a major move toward substantially increasing Federal support for medical research in a way that doesn't raise taxes and doesn't cut other critical programs.
If this policy had been in place over the past 5 years, NIH would have had nearly $6 billion more every year to fund thousands of new grants to scientists and universities and research centers around the country. That is almost a 20-percent increase in NIH funding.
It has been 10 years of stagnant Federal investments followed by sequester cuts, 10 years of rejecting potentially life-changing research proposals at NIH, 10 years of telling young researchers that their innovative ideas have almost no chance of getting off the ground. We are running out of time.
Today we are choking off support for projects that could lead to the next major breakthrough against cancer, heart disease, Ebola, Alzheimer's, diabetes, or other deadly conditions. We are starving projects that would transform the lives of our children on the autism spectrum. We are suffocating breakthrough ideas that would give new hope to those with ALS.
That is not who we are. We are not a nation that abandons the sick. And we are not a nation that says, ``I've got mine, the rest of you are on your own.'' We are a nation of people who work together. We are a nation of people who invest in each other. We have done it for generations--and for generations we have led the world in medical innovation.
It is time to renew that commitment--our commitment to our children, our commitment to our parents, our commitment to ourselves, by making it a little easier for the biggest drug companies to help develop the next generation of cures and making it a little harder for them to profit from breaking the law and defrauding taxpayers. It is time to pass the Medical Innovation Act.