PhRMA issues new membership criteria, boots more than 20 drugmakers

Pharmaceutical Research and Manufacturers of America on Tuesday rolled out new membership criteria, dismissing 22 drugmakers from the powerful lobby group, reports Chicago Tribune.

The new rules, effective immediately, require member companies to spend at least $200 million annually on research. Research spending must also equate to at least 10 percent of sales revenue, based on a three-year average, according to the report.

PhRMA removed seven full members and 15 associate member companies from the group, following the new membership criteria.

"By putting in place new membership criteria, the board is sending a clear message that being a member of PhRMA means being committed to doing the time-intensive, scientifically sound research it takes to bring bold new advances in treatments and cures to patients,” Joaquin Duato, PhRMA board chairman and worldwide chairman of pharmaceuticals for Johnson & Johnson, said in a news release.

The lobby group changes follow PhRMA's January launch of a major advertising campaign to improve the drug industry's public image following heated criticism over rising drug prices. In April, Mallinckrodt Pharmaceuticals and Marathon Pharmaceuticals — both the center of drug pricing controversies — resigned from the lobby group ahead of the membership changes.

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