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New PhRMA Code on Interactions with Healthcare Professionals

PhRMA, the trade organization that represents the pharmaceutical industry in Washington, D.C. recently announced a new code to guide the interactions of the pharmaceutical industry with healthcare professionals.

The code touches on a broad variety of the ways in which the industry interacts with healthcare professionals—from in-office visits, to broader issues like continuing medical education and physician speaking and consulting arrangements.

We have agreed to abide by the new code because we believe it will help to create a more positive perception of our industry.   However, I remain concerned about the myths that are shaping some of the perceptions of the industry.  

One of those myths is that the cost of pharmaceuticals is a major factor in the rising cost of healthcare.  For more than a decade, prescription medicines have accounted for only 10 cents of every healthcare dollar, according to the Centers for Medicare & Medicaid Services.  And the benefit of that 10 percent is seen in the increase in survival rates for cancer and other diseases, and the improvement in chronic medical conditions such as diabetes and high blood pressure.  This modest investment equals an effective and efficient use of healthcare resources.

One example of the benefit of pharmaceuticals is seen in cancer treatments.  In 1971, President Nixon declared the war on cancer.  In the 30-plus years since then, the number of new cancer medicines tripled.  During that time, the cancer survival rate rose from 50% to 62.7%.  A 2004 study found that new cancer drugs have accounted for 50% to 60% of the gains made in cancer survival rates since 1975.  But the war on cancer is not yet won, and the pharmaceutical industry is continuing research and development efforts that have produced the gains in survival over the last 3 decades.

The reality is that developing new medicines is an expensive and risky undertaking.  In order for researchers to continue developing the kind of medical breakthroughs we all want for ourselves, our friends and our families, companies like ours must continually invest in research & development.  In 2007, Cephalon reinvested 21 percent of its sales revenue for research & development.  Over our 21 year history, we have invested more than $2 billion dollars in research that has allowed us to bring new medical solutions to patients with rare disorders and other more prevalent medical conditions.

We believe that we play an important role in improving the health of individuals around the world who suffer daily from diseases that affect the quality of their lives.  It is our goal to be seen as a partner in your overall healthcare, and our desire that our medicines be seen as what they are- an effective and efficient use of your healthcare dollar.