Date: 01/14/2010
Final
Presentation by PhRMA
COMMITTEE ON JOINT HEALTH AND HUMAN SERVICES
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01:33 PM -- Presentation by PhRMA
Senator Boyd gave introductory comments. She explained that this meeting is the first of three meetings scheduled for the Joint Health and Human Services Committee. She introduced the presenters from the Pharmaceutical Research and Manufacturers of America (PhRMA).
01:35 PM
Dr. Kiki Traylor, Amgen, began her presentation related to the development of biologics and the biologics industry in Colorado. She distributed a handout to the committee (Attachment A). Dr. Traylor described biotech medicines. She explained that these medicines include human therapeutics, such as insulin, vaccines, blood products, specialty targeted antibiotics, etc. Most biotech medicines are injectable drugs. She described the complexity of biotech medicines and the differences in manufacturing biotech medicines vs. traditional small molecule pharmaceuticals.
01:43 PM
Dr. Traylor described the processes and costs involved in the research and development process for biotech medicines. She gave the example of the drug Denosumab, stating that the development of the drug took 15 years and cost almost $1 billion.
01:46 PM
Joseph Hammang, Senior Director of Science Policy for Pfizer Pharmaceuticals, described the operating model for the company. He discussed the changing demographics of the pharmaceutical industry, stating that PhRMA had almost 50 members in 1988 and currently has only 28 members. Dr. Hammang gave an overview of the research and development process at Pfizer and the company's collaborations with other laboratories. He discussed the proportion of health care costs that is comprised of pharmaceutical sales, stating that the sale of pharmaceuticals has comprised about 10 percent of total health care costs since 1966. Dr. Hammang discussed spending on research and development by pharmaceutical companies. A handout concerning the bioscience industry in Colorado was distributed to the committee (Attachment B). He discussed the relationship of pharmaceutical companies with institutions of higher education. Dr. Hammang described the percentage of revenues invested by pharmaceutical companies in research and development versus that invested by other industries. He discussed the perception that the pharmaceutical industry spends more on marketing than on research and development.
02:00 PM
Richard Duke, President and CEO of ApopLogic Pharmaceuticals, discussed the impact of the biotech industry on Colorado's economy. He described the funding that state research institutions receive from the National Institutes of Health, stating the funding that is received is leveraged considerably. He discussed the role of venture capital in funding the development of new drugs. He stated that an investment in biotech is necessary in order for Colorado to remain competitive in the industry. He discussed the difficulty in getting a new drug approved for sale, stating that for each cancer drug that is approved, 600 drugs do not make it through the clinical trial process.
02:09 PM
Representative Riesberg asked for information on "off-label" uses of drugs. Dr. Hammang described the process in which pharmaceutical companies find additional uses for existing drugs. Dr. Hamming responded to additional questions from Senator Carroll regarding off-label uses of prescription drugs and patient safety. Dr. Hamming discussed the counterfeiting of prescription drugs, and discussed the reasons why prescription drugs cost more in the United States than in other countries. He stated that the prescription drug industry is suffering in other countries, and that companies are moving their research and development activities to the United States because it is a more supportive environment for innovation.
02:23 PM
Dr. Hammang further responded to questions from Representative Swalm regarding PhRMA's support for health care reform legislation. He responded to questions from Senator Mitchell regarding the profitability of the pharmaceutical industry. He discussed the importance of research and the large number of drugs that are "failures" in the development process. Mr. Duke discussed government funding for drug development.