Top Pharma lobbyist resigns, seen as disaster for Obama

"Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO Billy Tauzin said late Thursday he was resigning
effective June 30 after five years as head of one of the most powerful lobby groups in Washington.

• The group, which represents Pfizer, Merck and other top drugmakers,

• has been one of the biggest backers of Democrats' legislation to expand access to health insurance, among other reforms.

"The bottom line is: this is not good for the (healthcare) bill," said lobbying expert James Thurber, head of the Center for Congressional and Presidential studies at American University. "PhRMA played a key role and without Billy Tauzin, who is trusted by both parties, there ... it doesn't help the cause for getting the reform through."

• PhRMA pledged to pay $80 billion over 10 years in price cuts and other concessions as part of a deal with the Obama administration and top Senate Democrats last June.

Despite the costs, the deal was seen as a small price for the $315 billion drug industry to pay in exchange for potentially 30 million more insured customers....

• Still, his departure casts further doubt on the future of Democratic legislation currently stalled in Congress. Despite the industry's backing, Democrats are struggling to find a path forward to pass a final measure after losing their supermajority in the Senate last month.

The resignation of big pharma's top lobbyist further clouds President Barack Obama's ability to make good on his promise to overhaul the nation's $2.5 trillion healthcare system as Democrats struggle to pass their health reform plan.

• Tauzin, who served 26 years in the U.S. House of Representatives first as a Democrat before switching to the Republican party, was the major force behind PhRMA's deal.

• His group reported spending $26,150,520 in 2009 for lobbying, according to the nonpartisan Center for Responsive Politics.

"His members think he gave away the farm for nothing. So he was really tossed because of a falling out with the board over miscalculating how to negotiate," a source familiar with the situation said.

• Another industry source, however, said Tauzin's move was not linked to the stalled healthcare reform effort but rather a
  

• personality clash between the former Louisiana congressman and incoming PhRMA chairman, Pfizer CEO Jeffrey Kindler.

A call for additional comment from PhRMA was not immediately returned.

Kindler, a Democrat, is set to take over the lobby group next month from current PhRMA chairman and AstraZeneca CEO David Brennan. Both Kindler and Brennan praised Tauzin's work....

• Still, Republican strategist Scott Reed cited flaws with Tauzin's approach, saying he "got seduced by Obama world, and it turned out to be a strategic blunder for his industry."...

PhRMA is still likely to have a strong role in shaping health reform negotiations going forward despite the leadership switch given its substantial funding. Industry analysts have said the current Democratic bills could be either neutral or positive for the sector....

• reuters report, 2/12/10