Press Release

PhRMA Statement on President’s 2015 Budget

PhRMA March 4, 2014

WASHINGTON, D.C. (March 4, 2014) – Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO John J. Castellani issued the following statement today:

“President Obama claims his budget invests in innovation and allows America to compete in the 21st century economy, when the reality is that these proposals undermine such efforts. This budget is damaging to patients, innovation, and our economy.

“A key problem is how the President’s budget could dismantle Medicare Part D, which, to date, is a model of success. It has greatly improved seniors’ access to medicines, held down premiums, achieved billions of dollars of savings on other Medicare costs by improving health, and cost hundreds of billions of dollars less than projected. Rather than embracing this rare, successful program, the President’s budget unproductively pushes, yet again, previously rejected proposals that would hurt, not bolster, the program.

“Likewise, the President’s budget would jeopardize medical advances and economic growth by reducing the incentives to invest in the development of new biologic medicines. Perplexingly, the President would undercut forward-looking incentives that were strongly bipartisan adopted in the House and Senate and continue to be supported today.

“The President’s budget also proposes to restrict patent settlements that allow generics to reach the market before innovator patents expire. These settlements contain complex legal issues recently reviewed by the Supreme Court. The President’s proposal to restrict such settlements creates an uncertain business environment and could lead to higher healthcare costs.

“The biopharmaceutical research sector is the most research and development-intensive sector in the entire economy. The unmatched level of investment in R&D translates into remarkable medical advances that make lives better and longer and spurs economic growth. We hope that the Administration will recognize that biopharmaceutical research companies are critical partners in achieving many of the healthcare and economic goals set by the President himself. However, new medicines and new jobs cannot be created under policies that would hurt the industry.   

“Policy solutions to America’s health and fiscal stability exist, but the President’s attempt is a failed contribution that continues to promote tired, counterproductive proposals that would undermine both the biopharmaceutical research sector and the Administration’s own goals of promoting innovation and new medical advances and creating jobs and opportunity.”

The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research and biotechnology companies, which are devoted to discovering and developing medicines that enable patients to live longer, healthier, and more productive lives. Since 2000, PhRMA member companies have invested approximately $550 billion in the search for new treatments and cures, including an estimated $48.5 billion in 2012 alone.

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