[Congressional Record Volume 150, Number 26 (Wednesday, March 3, 2004)]
[Extensions of Remarks]
[Pages E291-E292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    HIGH COST OF PRESCRIPTION DRUGS

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                        HON. JOHN J. DUNCAN, JR.

                              of tennessee

                    in the house of representatives

                        Wednesday, March 3, 2004

  Mr. DUNCAN. Mr. Speaker, Dean Stone, long-time editor of The Daily 
Times newspaper in Maryville, TN, has written a really outstanding 
editorial about prescription drug prices.
  Mr. Stone frequently writes very thoughtful and informative 
editorials about issues of national importance.
  He points out in this editorial that we have drug prices that are far 
too high because the Food and Drug Administration, FDA, seems to be 
controlled by the giant pharmaceutical companies.
  I have consistently supported in committee meetings and in votes on 
the floor of the House the right of the people to purchase drugs from 
Canada. Mr. Stone points out that FDA concerns about safety are not 
supported by any evidence.
  I would like to call this fine editorial to the attention of my 
colleagues and other readers of the Record.

   With More Than 600 Lobbyists, There's Little Chance on Drug Prices

       Know why we Americans will not get reasonable prescription 
     drug prices?
       The pharmaceutical industry has more than 600 lobbyists in 
     Washington, more than the total number of representatives and 
     senators.
       They have spent $435 million to influence Washington from 
     1996 to 2003 and handed out $57.9 million in contributions 
     between 1991 and 2002 to buy their way through Congress.
       They are well paid (we pay for them with exorbitant drug 
     prices) and they do their job, cutting to pieces any 
     legislation that might tend to lower the price of 
     prescription drugs.
       The Feb. 2 issue of Time magazine contains an excellent 
     article about how Americans are being ripped off with high 
     prices from the manufacturers of drugs.
       And most of our drugs are manufactured overseas by American 
     companies who moved there because of the tax breaks. And it 
     is illegal for Americans to import these drugs.

[[Page E292]]

     While the Federal Drug Administration (FDA) inspects these 
     overseas plants when built to certify their products, there 
     is little supervision later.
       Ireland is a favorite location and Singapore is getting new 
     plants. This overseas production of drugs was $40.7 billion 
     in 2002, a five-fold increase from 1995. The impact has given 
     us a negative balance of trade in that field.
       Pfizer Inc. and Eli Lilly & Co. enjoy huge profit margins 
     compared with other U.S. firms. Pfizer's was 28.4 percent 
     profit in 2002 while Eli Lilly was at 24.4 percent.
       Pfizer reported $9.1 billion in profits on $32.4 billion, a 
     return of 28 percent and a rate more than twice that of 
     General Electric, nine times that of Wal-Mart and 31 times 
     that of General Motors.
       Our U.S. sales of prescription drugs is the highest in the 
     world at $654 per person with an average life expectancy of 
     77 years. Japan is second at $421 with a life expectancy of 
     81 years.
       Americans pay on an average 40 percent more for their 
     prescription drugs than do Canadians. And it has been ruled 
     illegal for us to import them from Canada. Drug companies 
     have threatened to cut off supplies to Canadian drug stores 
     that sell to Americans.
       Despite all this, the cities of Montgomery, Ala., and 
     Springfield, Mass., have negotiated with Canadian sources. 
     Montgomery alone is saving $34,000 a month with its contract.
       Members of Congress, the FDA and all the rest who are in 
     bed with the pharmaceutical industry who use the excuse of 
     safety regarding Canadian drugs are just blowing hot air. So 
     far there have been no reported incidents of any problem. In 
     the U.S., 50,000 to 100,000 people die annually as a result 
     of adverse reactions from FDA-approved drugs.
       Drug companies like to talk about the cost of developing 
     new drugs. A report of the Joint Economic Committee of 
     Congress in 2000 dispels some of that. It found that the 
     federal government, mainly through the National Institutes of 
     Health, the National Cancer Institute and other public 
     agencies funds about 36 percent of all U.S. medical research. 
     Of the 21 most important drugs introduced between 1965 and 
     2002, a total of 15 was developed using knowledge and 
     techniques from federally funded research.
       Best current figure we could locate indicates $2.5 billion 
     was spent by the drug industry on advertising in 2001.
       There is absolutely no real effort by the President or 
     Congress to take an honest look at the high cost of 
     prescription drugs. We believe in the capitalistic system but 
     not in those extreme profiteers whose huge profit is at the 
     cost of our health. Canada does a good job of regulating 
     prices and would be a good example to follow.
       Regulations always take away a little freedom from some 
     segment of the economy but the government has seen fit to 
     regulate the broadcast industry, the airline industry, 
     interstate commerce and through taxes numerous other aspects 
     of the economy. It is time to do something about runaway 
     prescription drug prices.
       There is a Republican president, a Republican Congress and 
     this problem lies largely on their shoulders, election or 
     not!

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