CEO DATELINE - Drug company exits PhRMA as group reconsiders membership criteria
CEO DATELINE - Drug company exits PhRMA as group reconsiders membership criteria
- April 6, 2017 |
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Walt Williams
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A U.K. pharmaceutical company has dropped out of Pharmaceutical Research and Manufacturers of America as a result of proposed association bylaws changes that would require members to invest heavily in research and development of new medications.
The Wall Street Journal reported Wednesday that Mallinckrodt Pharmaceuticals left PhRMA because the bylaws changes would likely force it out anyway. The company is based in the U.K. but has offices in St. Louis. http://on.wsj.com/2oFdYfJ
The company joined PhRMA in 2015 with much fanfare. But starting last year the association set out to repair the damaged public image of the pharmaceutical industry, which has been hit with several controversies concerning price hikes for vital medications. The proposed bylaws changes are part of that effort, with the emphasis on research investment meant to showcase the industry's importance in producing new medications.
Mallinckrodt may have left PhRMA but it was not the company many outside observers expected to first announce its exit. The association began a review of its membership criteria in February after member company Marathon Pharmaceuticals came under fire for sharply increasing the price of a drug used to treat muscular dystrophy. PhRMA CEO Stephen Ubl issued a statement at the time saying Marathon's actions "are not consistent with the mission of our organization." http://trib.in/2oNfrgL
Marathon is still a PhRMA member, according to the association's website.
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