[Congressional Record Volume 149, Number 112 (Friday, July 25, 2003)]
[Extensions of Remarks]
[Page E1648]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


[[Page E1648]]
                PHARMACEUTICAL MARKET ACCESS ACT OF 2003

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                               speech of

                          HON. JAMES A. LEACH

                                of iowa

                    in the house of representatives

                        Thursday, July 24, 2003

  Mr. LEACH. Mr. Speaker, consideration of H.R. 2427, the 
Pharmaceutical Market Access Act of 2003 involves a mosaic of liberal, 
conservative and moderate concerns which make the case for passage 
compelling.
  From a liberal perspective it is clear that America's social fabric 
is being wrenched as many of our citizens confront drug costs they 
cannot meet. From a conservative perspective it is apparent that the 
current system involves the placing of restraints on trade that a 
country dedicated to free markets should philosophically find 
untenable. And from a moderate perspective, it is troubling that the 
world-wide cost of pharmaceutical research is borne disproportionately 
by the American consumer with the consequence that the cost of drug 
development, which is paid for by the American taxpayer through support 
of institutions like NIH and the American consumer through prescription 
drug prices, has come to represent one of the largest foreign aid 
programs in history.
  The question is whether the cost of drug research and development 
should be borne on an even basis by all countries or almost exclusively 
by the U.S. consumer.
  There are, of course, issues of safety raised by this measure before 
the House, but they will exist whether or not this legislation passes. 
Indeed, it may arguably be claimed that there is a greater incentive 
for counterfeiting drugs in a circumstance where American prices are 
inflated relative to those in other countries.
  In addition, enormous safety concerns arise when individuals cannot 
afford the drugs they need and these must be taken into account in any 
equation attempting to balance all elements of the safety problem.
  Critics of opening up trade in prescription drugs properly note that 
the bill under consideration does not provide increased resources for 
the FDA to adequately inspect overseas drug production and sales. It is 
my strong sense that there is consensus in this body that Congress must 
address this issue and provide the FDA with greater resources should 
this legislation pass.
  Mr. Speaker, the cost of prescription drugs is not an issue 
exclusively for those who require them. Prescription drug are a 
significant component of healthcare costs in this country and this high 
cost of American healthcare is one of the factors incentivizing 
companies to invest and in many cases relocate abroad.
  Bringing down drug costs is thus a jobs issue for all Americans as 
well as a cost concern for those individuals who rely on particular 
medicines.
  Mr. Speaker, the pharmaceutical industry deserves our respect for 
having made scientific breakthroughs that have been of life-saving 
significance to countless individuals. The revolution in sophistication 
of drug treatment is just beginning, and care must be taken not to 
radically erode the industry's research base, but the pharmaceutical 
industry should not be more protected from market forces than other 
industries.
  Protectionism is generally counter-productive, but seldom has a set 
of laws designed to provide a protective cocoon for an industry proven 
more cost disadvantageous for the public. I know of no industry which 
has such a substantially higher price structure in this country than 
abroad. Indeed, the genius of the American marketing structure is that 
there is virtually no processed commodity that cannot be bought cheaper 
here than abroad. The singular major exception is prescription drugs.
  The most effective antidote to this market malady is competition. The 
public interest requires adoption of the Pharmaceutical Market Access 
Act of 2003.

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