Nearly two dozen pharmaceutical companies have been forced out of Pharmaceutical Research and Manufacturers of America after the association's board of directors adopted new membership criteria aimed to curb public criticism of the industry.

PhRMA announced Tuesday that board members approved new criteria requiring members to invest heavily in research and development of new medications. Members must spend the equivalent of at least 10 percent of their annual global sales on R&D, which each company pledging to spend an average of at least $200 million a year during a three-year period.

The changes, which took effect immediately, eliminated the group's "associate" category, which included 15 companies, according to PhRMA. In addition, seven full members could not meet the new criteria and are no longer eligible for membership. Thirty-seven companies remain members of the group.

The pharmaceutical industry has come under increasing political pressure in recent years to hold down drug prices. Last year, PhRMA reportedly increased membership dues by 50 percent to fund a multiyear public relations campaign to rehabilitate the industry's image.

The new criteria are part of that rehabilitation, with the association seeking to emphasize the role pharmaceutical investment has played in improving public health.

"By putting in place new membership criteria, the board is sending a clear message that being a member of PhRMA means being committed to doing the time-intensive, scientifically sound research it takes to bring bold new advances in treatments and cures to patients," said Joaquin Duato, PhRMA board chairman.

Companies no longer eligible for PhRMA membership include Marathon Pharmaceuticals, AMAG Pharmaceuticals and The Medicines Company, according to a list provided by the association. PhRMA said companies could reapply for membership as they meet the new criteria. http://onphr.ma/2pxHAY6

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