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                                                      PRINTER'S NO. 2197

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE RESOLUTION

No. 215 Session of 2000


        INTRODUCED BY MOWERY, MURPHY, SALVATORE, HELFRICK, PICCOLA,
           JUBELIRER, PUNT, WHITE, LOEPER, WAUGH, RHOADES, TOMLINSON,
           HART, DENT, ROBBINS, MADIGAN, EARLL, HOLL AND LEMMOND,
           OCTOBER 3, 2000

        REFERRED TO INTERGOVERNMENTAL AFFAIRS, OCTOBER 3, 2000

                                  A RESOLUTION

     1  Urging the Congress of the United States and the Food and Drug
     2     Administration (FDA) to take quick action to investigate and
     3     resolve the skyrocketing cost of prescription drugs and to
     4     end certain deleterious advertising practices harmful and
     5     costly to the Pennsylvania consumer.

     6     WHEREAS, Several committees of the Senate of the Commonwealth
     7  of Pennsylvania have conducted hearings throughout this
     8  Commonwealth attempting to ascertain the causal factors behind
     9  the rising costs of prescription drugs as well as the enormous
    10  impact on both private and government purchasers; and
    11     WHEREAS, In recent years the cost of prescription medication
    12  has climbed at an astonishing rate, due in part to increased
    13  utilization spurred by advertising and promotional activities
    14  comparable to Hollywood's finest productions; and
    15     WHEREAS, The FDA, under the purview and guidance of the
    16  Clinton Administration, eliminated necessary restrictions on
    17  drug advertising, thereby ending decades of consumer protection;
    18  and


     1     WHEREAS, The FDA, with the consent of the Clinton
     2  Administration, allowed these dangerous and wasteful practices
     3  to commence, making the United States the only country in the
     4  world that allows direct-to-consumer advertising of prescription
     5  drugs; and
     6     WHEREAS, Citizens for Consumer Justice, a Statewide consumer
     7  group, indicates that these promotions and advertisements, not
     8  research and development, are the pharmaceutical industry's
     9  fastest growing expenditure; and
    10     WHEREAS, Such increased advertising has been shown to be
    11  effective in increasing market share since ten of the most
    12  heavily advertised drugs account for almost 25% of total drug
    13  expenditures; and
    14     WHEREAS, The top 25 direct-to-consumer advertised drugs
    15  posted sales growth totaling 43.2% in 1999 alone, and such
    16  growth clearly exceeds the 13% growth posted by other
    17  nonmarketed drugs; and
    18     WHEREAS, Increased advertising can create a demand for the
    19  product rather than an actual medical need; and
    20     WHEREAS, Grave problems can arise when increased use is
    21  merely the result of increased marketing with no corresponding
    22  improvement in health; and
    23     WHEREAS, It appears that increased marketing may prove to be
    24  a more profitable investment for manufacturers than further
    25  research and development; and
    26     WHEREAS, In 1999 pharmaceutical companies spent 33 times as
    27  much in direct-to-consumer advertising as they did in 1993,
    28  causing expenditures to rise from $55 million to more than $2
    29  billion; and
    30     WHEREAS, Prescription drugs are now the fastest growing
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     1  segment of health care spending, rising 18% from $79 billion in
     2  1997 to $93.4 billion in 1998; and
     3     WHEREAS, In 1999 spending rose 19% from the previous year,
     4  and comparable increases are expected to occur in future years;
     5  and
     6     WHEREAS, An industry representative testified that the
     7  introduction of a generic product immediately lowers a drug's
     8  price by 30% to 80%; and
     9     WHEREAS, The Federal Trade Commission has alleged that some
    10  pharmaceutical companies have paid generic drug manufacturers to
    11  forego or delay manufacturing of certain medications; and
    12     WHEREAS, Consumers in the United States pay more for the same
    13  medication than consumers in other countries as a result of
    14  these practices; and
    15     WHEREAS, The runaway cost of prescription medications affects
    16  all Americans, not just Pennsylvanians or the elderly; and
    17     WHEREAS, Constant bombardment of drug advertisements has the
    18  potential to have a serious negative effect on children by
    19  giving them the distorted message that the consumption of drugs
    20  is a desirable behavior which resolves all of life's
    21  difficulties, which message is counterproductive at best and
    22  counteracts government and community-based efforts to prevent
    23  tobacco, alcohol and drug abuse by children; therefore be it
    24     RESOLVED, That the Senate of the Commonwealth of Pennsylvania
    25  implore the Congress of the United States to review the actions
    26  of the FDA, whose marketing guidelines appear to promote and
    27  advance the best interests of the drug companies and their
    28  advertising outlets rather than the American consumer; and be it
    29  further
    30     RESOLVED, That the Congress and the FDA move to prohibit
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     1  direct consumer marketing or in the alternative to impose
     2  tighter restrictions; and be it further
     3     RESOLVED, That copies of this resolution be sent to the
     4  President of the United States, the presiding officers of each
     5  house of Congress, each member of Congress from Pennsylvania and
     6  the Commissioner of the Food and Drug Administration.
















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