Lobbyists battle over drug sales

WASHINGTON -- As Congress struggles with a massive health care overhaul, several lobbying powerhouses — including the pharmaceutical industry and the nation's largest advocacy group for retirees — are locked in a contentious fight over the future of biotechnology drugs.

Both sides have spent heavily to sway lawmakers in the debate over how long to keep the expensive drugs exempt from generic competition. President Obama is pushing for seven years of exclusivity as he looks to trim costs to help pay for his health care plan — five years less than what the industry wants.

"If you extend that 12 years, obviously it's better for (drugmakers') bottom line," Obama said Friday. "But it also means you're keeping important drugs off the market and driving up those costs further."

The pharmaceutical industry counters that a longer period of exclusivity is needed to recover its investments in "biologic drugs," which are made from living organisms and used to treat cancer, multiple sclerosis and other serious diseases.

"We understand that it's important to save money in our health care system, but it's also important to save lives," said Ken Johnson, senior vice president of the Pharmaceutical Research and Manufacturers of America. He said the group has spent "several million" on ads promoting longer exclusivity rights.

He said a shorter period of market exclusivity "will chase off investors and drive research and development overseas." Johnson noted that drug companies have agreed to shoulder $80 billion of the health plan's cost in part by lowering prices of drugs for seniors purchased through Medicare.

The Biotechnology Industry Organization, which also backs at least 12 years of exclusivity, recently spent $300,000 on advertising.

On the other side, the AARP spent nearly $90,000 in May and July to press its case in advertisements targeting selected lawmakers, spokesman James Dau said. The AARP is part of a broad coalition that includes generic-drug makers, consumer groups and labor unions.