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Office Address
N0999 House Office Building

Mailing Address
P.O. Box 30014
Lansing, MI 48909-7514

Phone: (517) 373-1775
Fax: (517) 373-5242

Toll-Free
(888) DIST-065
(888) 347-8065

Email
mikesimpson@house.mi.gov

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News

Dems' Plan Requires Drug Industry to Report Marketing Expenses

Plan aimed at boosting consumer protections also bans lavish gifts to doctors

LANSING – In a move to increase consumer protection in Michigan and hold drug companies accountable, State Representatives Mike Simpson (D-Liberty Township) and Barb Byrum

(D-Onondaga) today introduced a plan that requires drug companies to fully disclose how they spend their marketing money and bans lavish gifts such as extravagant trips and meals to doctors.

"The amount of money big drug companies spend on marketing dwarfs the amount of money they spend on research and development," Simpson said. "Clearly, they are motivated by profits and not the health of Michigan consumers. By requiring drug companies to report how they spend their millions, we can increase transparency and openness."

The House Democratic plan would:

  •        Require companies to report all drug advertising and marketing expenditures, including gifts to doctors and other health care workers.
  •        Require companies to report research and development expenditures.
  •        Ban lavish drug company gifts to doctors and limit gifts to $100 worth a year.
  •        Establish a searchable Web site that details drug companies' marketing expenses and gifts to doctors, which would be maintained by the Department of Community Health.

Big drug companies spend more than $21 billion annually on marketing.[1] Merck, maker of now-banned Vioxx, spent more than $160 million on an aggressive advertising campaign in 2000; as a result, sales of Vioxx quadrupled to $1.5 billion.[2] Vioxx may have caused heart attacks or cardiac deaths in up to 139,000 Americans, based on Merck's own studies, before it was pulled from shelves in 2004.[3]

"Big drug companies make billions of dollars off the products they make, and, at least in the case of Vioxx, with blatant disregard for their products' safety," Byrum said. "That's wrong, and our legislation aims to shine a light on these shady practices. By adding another layer of accountability, we will protect Michigan consumers."



[1] Journal of the American Medical Association, Jan. 25, 2006.

[2] 2002 AARP report.

[3] Testimony of David Graham, associate director for science and medicine in the FDA's Office of Drug Safety, before the Senate Finance Committee, Nov. 18, 2004.

 

Copyright:

© 2009 Michigan House Democrats

Our Mailing Address:

P.O. Box 30014 • Lansing, MI 48909-7514

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