More companies hire government-affairs experts and expand their involvement in legislative issues as the health-care industry undergoes intense political scrutiny.
by Gina-Louise Monari
MedAdNews
As the complexity of the political environment surrounding pharmaceutical issues increases, more companies are appointing government-affairs officers. This new breed of corporate executives are advocates of their company and their industry. They execute issue-related campaigns and regularly meet with government officials at the local, state, and federal levels to discuss policies affecting their company. Abbott Laboratories, Amgen Inc., AstraZeneca, and Solvay Pharmaceuticals Inc. continue to strengthen their government-affairs groups as other companies such as Novo Nordisk Pharmaceuticals Inc. and Boston Scientific Inc. are creating government-affairs positions. One of the most active companies is Pfizer Inc., with a politically experienced senior VP of government affairs and its own political action committee.
Industry issues, such as the Medicare prescription drug benefit and pharmaceutical pricing, traditionally have been handled by lobbyist groups, however, pharmaceutical companies are appointing government-affairs officers to reach out personally to policy makers regarding issues that directly affect their own organizations. The companies are attempting to do a better job at educating legislators and explaining the intricacies of complex health-care issues so that legislators understand the dynamics behind pricing and intellectual property.
Companies are becoming more active in government affairs because of the political environment. According to Karen Carlisle, director, government and public affairs, Solvay, there are more issues now than there were two years ago. At the federal level, there is the Medicare Prescription Drug Benefit Bill, which was signed into law last year. The importation of drugs is another hot issue, with Congress considering several bills to make importation of pharmaceuticals from countries such as Canada legal. At the state level, there are issues such as the Medicaid supplemental rebate, which compels companies to pay states; and states? preferred drug lists, in which certain drugs are prohibited from formularies for Medicaid patients.
"A lot of issues, a lot of laws are being passed that just didn?t exist two years ago, and it takes a lot of people to cover that when there are 50 states," Ms. Carlisle told Med Ad News. "That?s why we?re seeing the trend for a lot of people to try to increase their coverage in their government-affairs functions."
Abbott, Amgen, Novo Nordisk, and AstraZeneca are some of the companies to appoint government-affairs officers in 2004. Abbott (abbott.com) expanded its Washington staff in January with the hire of James White, director, federal government affairs. Mr. White was the legislative director for House Energy and Commerce Committee Chairman Billy Tauzin, R-La.
Within the pharmaceutical industry, Abbott is actively involved in public policy dialogue through memberships in a number of professional and trade associations. The Abbott pharmaceutical products group?s president and chief operating officer chairs the company?s pharmaceutical policy committee. Members include senior executives from the company?s U.S. and international pharmaceutical businesses, global citizenship and policy, government affairs, and public affairs. The committee discusses major health and public policy issues and integrates policy decisions into core business strategies and practices. In 2003, the committee addressed issues such as Medicare reform, coverage for uninsured patients, Abbott?s product-access programs, and global AIDS outreach.
Pete Teeley founded Amgen?s Washington office more than 10 years ago and has led Amgen?s government-affairs efforts since then. In March, Amgen hired Rodger Currie as VP, government affairs. Mr. Currie is working closely with David Beier, Amgen?s senior VP, global government affairs, to create and design the appropriate legislative strategy for the company. Mr. Currie will be responsible for executing this strategy in Washington. Mr. Beier?s responsibilities have been to align Amgen?s commercial interests with government-affairs activities, as well as strengthen its presence in capitols at the federal, state, and international levels.
According to Amgen (amgen.com), Mr. Currie is a key asset in the management of the company?s Washington office?s federal government-affairs program, a vital initiative and strategic imperative for Amgen. Mr. Currie joined Amgen from Pharmaceutical Research and Manufacturers of America (phrma.org), the pharmaceutical lobbying organization in Washington, where he was senior VP for federal affairs and law.
Novo Nordisk (novonordisk.com) created the new position of chief government-affairs officer and hired Michael Mawby to fill the role. According to Martin Soeters, president, Novo Nordisk, Mr. Mawby?s appointment, combined with the opening of the company?s new office in the capitol, will substantially increase Novo Nordisk?s ability to make its voice heard on health-care public policy issues. Novo Nordisk?s main focus pertains to diabetes care.
"Here in the United States, Novo Nordisk is working as a catalyst to improve diabetes prevention and treatment, thereby changing the course of the disease for good," Mr. Soeters says. "We strive to be the preferred partner for patients, health-care providers, and health-care payers who share our vision to defeat diabetes."
Mr. Mawby came from the American Diabetes Association (diabetes.org), where he served as national VP, government relations and advocacy. At Novo Nordisk, Mr. Mawby is expected to influence public policy to improve the treatment, care, and health-care coverage for people with diabetes. He will be based in the company?s office in Washington.
Marion McCourt was appointed VP, government-affairs, policy, and managed markets at AstraZeneca?s U.S. division in May. Ms. McCourt was VP, managed markets, and had responsibility for leading the managed markets business group. Ms. McCourt?s appointment, which is a new position, follows the announcement by Alan Milbauer, VP, public affairs, of his retirement after 32 years of service. Mr. Milbauer was responsible for the government and public-affairs functions in the United States.
"Our decision to combine government affairs with managed markets makes particularly good sense in today?s changing health-care environment," says David R. Brennan, president and CEO, AstraZeneca LP (astrazeneca-us.com). "AstraZeneca has reached a critical point to effec?tively adapt to these changes and find areas to take leadership, especially in light of Medicare reform."
Ms. Carlisle says the company?s government-affairs officers at Solvay serve as lobbyists. They also partner with a number of patient advocacy groups and disease-related groups to support their efforts.
"We work with the legislative and executive branches of government at federal, state, and local levels," Ms. Carlisle says. "Just to build relationships with them, to educate them on our issues, and to hear their perspectives as well so that we can work together to bring access to our patients for medicines."
Solvay?s government-affairs officers concentrate their efforts in personal and local ways. Government-affairs officials will not only meet with federal legislators in Washington, but will meet with them in their home states.
"If they represent a particular state and we have employees there, we try to have those employees meet with them because they?re going to be much more interested in what their constituents have to say about an issue than what a lobbyist from a government-affairs department has to say," Ms. Carlisle told Med Ad News. "We try to make it as personal and as local as we possibly can."
Solvay?s U.S. headquarters is in Marietta, Ga. Because the company?s government-affairs department is small, Solvay concentrates its efforts on Georgia legislators, even to the local county commissioner level.
"We had some issues with the traffic," Ms. Carlisle says. "We had 500 people who were having problems getting to work because of the traffic on one of the roads. We had the county commissioner over just for a lunch-and-learn for us to get acquainted, and the next thing we knew, that road was repaired and a new lane was added and the traffic is much smoother now. And the next time we saw him he said, ?Hey, how was the job I did on that lane?? Well, there are 500 employees that are lot happier. He?s happy because he was able to accomplish something for us, and it was the beginning of a nice relationship."
Solvay (solvaypharmaceuticals.com) is trying to grow its government-affairs department. The department comprises Ms. Carlisle and Patroski Lawson, senior representative, government affairs. According to Ms. Carlisle, the company is aiming for a government-affairs division of three to five state government-affairs representatives, but is not planning to open an office in Washington as Amgen and other companies have.
Pharmaceutical industry executives are becoming more attuned to the political landscape. They understand that they need personal representation to meet the needs of their pharmaceutical organization and to partner with organizations that share a common interest in the overall industry. "The executives within companies are coming to a greater understanding about pressures of the legislative environment," says Lee Lynch, VP, deputy director, health policy, at the public-relations firm Hill & Knowlton (hillandknowlton.com). "We?re going to see increases in the number of government relations people, even within very small organizations."
Smaller companies are responding to the need for government-affairs officers. In December 2003, Boston Scientific (bsci.com) appointed Thomas Grissom to VP, government affairs. This new position was created to oversee the company?s Washington office and to be responsible for a wide range of global governmental policy issues impacting Boston Scientific and the medical-device industry. Mr. Grissom has been working with Congress, FDA, and key government agencies. According to Boston Scientific managers, he has the ability to communicate and work successfully with academics, lawmakers, policy staff, business leaders, federal and private sector employees, and the elderly in a variety of geographic and economic settings.
The top pharmaceutical companies have done more than just hire government-affairs officers, they have created large divisions devoted to government affairs. One of the most active companies in the political arena has been Pfizer (pfizer.com), which has several offices with officials dedicated to varying aspects of public policy and advocacy. Pfizer has one of the most comprehensive government-affairs groups in the industry. Pfizer?s New York government relations office employs six officials for government relations.
The company employs 21 alliance development and advocacy coordinators; 27 field-based government-relations managers, which are classified by region; and 10 officials in its Washington office. Pfizer?s government-affairs team addresses policy issues related to access to quality health care and consumer advocacy; leadership skills, media relations, fund raising, and board development; and pharmaceutical industry trends and consumer programs.
Pfizer has its own political-action committee. Although federal law prohibits companies from making contributions directly to candidates, companies can form their own political-action committees, which are funded solely through voluntary employee contributions. The Pfizer Pac is an employee-run organization with a steering committee made up of Pfizer employees from around the country. When considering a contribution to a candidate, the Pfizer Pac considers candidates? views on issues that impact Pfizer as well as the presence of Pfizer facilities or employees in the candidate?s district or state. The steering committee reviews and approves all recommendations for contributions on a monthly basis.
In the 2001-2002 election cycle, the Pfizer Pac supported 211 congressional candidates, with 72% of them being Republicans and 28% being Democrats. The pac contributed to 1,182 state and local candidates during the election cycle, with 58% being Republicans, 40% being Democrats, and 2% being independent.
The Pfizer Pac steering committee is headed by Chuck Hardwick, senior VP, worldwide government and public affairs. He was named to this position in December 2001. As head of corporate affairs, Mr. Hardwick has worldwide responsibility for government relations, media relations, public policy, and philanthropy. A Republican, Mr. Hardwick has an extensive political background, having served as speaker of the New Jersey General Assembly for 14 years. He was vice chairman of the 1988 National Republican Platform Committee and was named by President Reagan to the Presidential Advisory Committee on Federalism. He was appointed to the U.S. Trade Advisory Commission and was chairman of the U.S./Canada Free Trade Agreement Subcommittee.
Pfizer has a Website to raise awareness of political issues. Pfizer launched Pfizer Forum (pfizerforum.com) in 1994 to gain wider attention for ideas on public policy and to stimulate public discussion and consideration specific to health-care reform and other key issues.
|
Events Calendar
