It's the fall classic. Congress is rushing to adjourn so members can rush home to campaign for re-election. There is no better time for special interests seeking special favors from the members of Congress they have favored with campaign contributions.
Right now, Schering-Plough, a major pharmaceutical company, is trying to pull a fast one through the chaotic closing days of the 105th Congress. The exclusive patent on its best-selling allergy drug, Claritin, is due to expire in 2002. Claritin sales are projected to hit $1 billion this year, and thus Schering-Plough has a lot to lose--and consumers have a lot to gain--when generic drug manufacturers start making cheaper versions of the medication.
In the Senate, Frank Lautenberg (D-N.J.) and Connie Mack (R-Fl.) are pushing a provision onto the Omnibus Appropriations bill that would set up a procedure within the U.S. Patent and Trademark Office to allow manufacturers of certain brand name drugs to apply for three-year extensions on their patents. "If we want companies to continue to invest in research and development, and find cures for cancer, Alzheimer's and AIDS, they need a reasonable patent life for their products," Lautenberg argues.
But it's not as if drug companies need government's help. According to a recent analysis by the Boston Globe, drug company profits are more than double the average for industrial companies. Thanks in large degree to its Claritin sales, Schering-Plough's share price doubled this year, followed by a two-for-one stock split. Overall, restricted access to generic drugs translates into higher costs for consumers--as much as $550 million a year.
Schering-Plough's PAC (which is called with a straight face the "Better Government Fund") and its employees have made a total of $201,376 in contributions to candidates and party committees in the current election cycle. The top recipient of its PAC money is none other than Frank Lautenberg, who got $8,000, plus a $1,000 personal donation from Schering-Plough's CEO--even though his seat isn't up until the year 2000. Connie Mack, whose term also doesn't expire until then, is in second place with $5,000 from the company's PAC.
Wouldn't it be nice if someone developed a drug that would make members of Congress allergic to doing these kind of back-room favors for special interest donors?
