May 9, 2017 - Health

PhRMA alters membership requirements to focus on research

Craig Ruttle / AP

Confirming yesterday's buzz, PhRMA, the pharmaceutical industry's primary lobbying group, announced changes to its membership structure today that include stricter membership requirements and the elimination of its "associate" category. As a result, 22 companies lost their membership or associate membership status. The new requirements, based on a three-year average:

  • At least $200 million per year spent on research
  • Research expenditures equal to at least 10% of global sales

Why it matters: As we said yesterday, this is PhRMA's way of trying to get rid of smaller companies that engage in the controversial practice of buying older drugs and jacking up the prices. Read on to see who's out.

Former members, per PhRMA:

  • AMAG Pharmaceuticals, Inc.
  • Horizon Pharma plc
  • Jazz Pharmaceuticals plc
  • Leadiant Biosciences
  • Mallinckrodt Pharmaceuticals
  • Orexigen Therapeutics, Inc.
  • The Medicines Company

Former associate members, per PhRMA:

  • ACADIA Pharmaceuticals Inc.
  • Aerie Pharmaceuticals, Inc.
  • Avanir Pharmaceuticals, Inc.
  • BioMarin Pharmaceutical Inc.
  • CSL Behring, LLC
  • Esperion Therapeutics, Inc.
  • Ferring Pharmaceuticals Inc.
  • Grifols USA, LLC
  • Ipsen Biopharmaceuticals, Inc.
  • Marathon Pharmaceuticals, LLC
  • Shionogi Inc.
  • Sucampo Pharmaceuticals, Inc.
  • Theravance Biopharma
  • Vifor Pharma
  • VIVUS, Inc.
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