Mr. Speaker, Dean Stone, long-time editor of The Daily Times newspaper in Maryville, TN, has written a really outstanding editorial about prescription drug prices. Mr. Stone frequently writes very thoughtful and informative editorials…
Mr. Speaker, Dean Stone, long-time editor of The Daily Times newspaper in Maryville, TN, has written a really outstanding editorial about prescription drug prices.
Mr. Stone frequently writes very thoughtful and informative editorials about issues of national importance.
He points out in this editorial that we have drug prices that are far too high because the Food and Drug Administration, FDA, seems to be controlled by the giant pharmaceutical companies.
I have consistently supported in committee meetings and in votes on the floor of the House the right of the people to purchase drugs from Canada. Mr. Stone points out that FDA concerns about safety are not supported by any evidence.
I would like to call this fine editorial to the attention of my colleagues and other readers of the Record.
With More Than 600 Lobbyists, There's Little Chance on Drug Prices
Know why we Americans will not get reasonable prescription
drug prices?
The pharmaceutical industry has more than 600 lobbyists in
Washington, more than the total number of representatives and
senators.
They have spent $435 million to influence Washington from
1996 to 2003 and handed out $57.9 million in contributions
between 1991 and 2002 to buy their way through Congress.
They are well paid (we pay for them with exorbitant drug
prices) and they do their job, cutting to pieces any
legislation that might tend to lower the price of
prescription drugs.
The Feb. 2 issue of Time magazine contains an excellent
article about how Americans are being ripped off with high
prices from the manufacturers of drugs.
And most of our drugs are manufactured overseas by American
companies who moved there because of the tax breaks. And it
is illegal for Americans to import these drugs.
While the Federal Drug Administration (FDA) inspects these
overseas plants when built to certify their products, there
is little supervision later.
Ireland is a favorite location and Singapore is getting new
plants. This overseas production of drugs was $40.7 billion
in 2002, a five-fold increase from 1995. The impact has given
us a negative balance of trade in that field.
Pfizer Inc. and Eli Lilly & Co. enjoy huge profit margins
compared with other U.S. firms. Pfizer's was 28.4 percent
profit in 2002 while Eli Lilly was at 24.4 percent.
Pfizer reported $9.1 billion in profits on $32.4 billion, a
return of 28 percent and a rate more than twice that of
General Electric, nine times that of Wal-Mart and 31 times
that of General Motors.
Our U.S. sales of prescription drugs is the highest in the
world at $654 per person with an average life expectancy of
77 years. Japan is second at $421 with a life expectancy of
81 years.
Americans pay on an average 40 percent more for their
prescription drugs than do Canadians. And it has been ruled
illegal for us to import them from Canada. Drug companies
have threatened to cut off supplies to Canadian drug stores
that sell to Americans.
Despite all this, the cities of Montgomery, Ala., and
Springfield, Mass., have negotiated with Canadian sources.
Montgomery alone is saving $34,000 a month with its contract.
Members of Congress, the FDA and all the rest who are in
bed with the pharmaceutical industry who use the excuse of
safety regarding Canadian drugs are just blowing hot air. So
far there have been no reported incidents of any problem. In
the U.S., 50,000 to 100,000 people die annually as a result
of adverse reactions from FDA-approved drugs.
Drug companies like to talk about the cost of developing
new drugs. A report of the Joint Economic Committee of
Congress in 2000 dispels some of that. It found that the
federal government, mainly through the National Institutes of
Health, the National Cancer Institute and other public
agencies funds about 36 percent of all U.S. medical research.
Of the 21 most important drugs introduced between 1965 and
2002, a total of 15 was developed using knowledge and
techniques from federally funded research.
Best current figure we could locate indicates $2.5 billion
was spent by the drug industry on advertising in 2001.
There is absolutely no real effort by the President or
Congress to take an honest look at the high cost of
prescription drugs. We believe in the capitalistic system but
not in those extreme profiteers whose huge profit is at the
cost of our health. Canada does a good job of regulating
prices and would be a good example to follow.
Regulations always take away a little freedom from some
segment of the economy but the government has seen fit to
regulate the broadcast industry, the airline industry,
interstate commerce and through taxes numerous other aspects
of the economy. It is time to do something about runaway
prescription drug prices.
There is a Republican president, a Republican Congress and
this problem lies largely on their shoulders, election or
not!