LESIGLATIVE MEMO
PARTNERSHIP FOR NEW YORK CITY
New York, New York
March 1, 2010
Opposition to: Section 38, Part B of Article VII Budget Bill AB 9708/ SB 6608 – Proposes Marketing Restrictions on Prescription Drugs, Biologics and Medical Devices
The Partnership is an organization of business leaders and major employers dedicated to working with government, labor and the not-for-profit sectors to strengthen the economy of New York City and State. Our members are international and regional businesses that currently employ 1.3 million people throughout New York State and contribute $201 billion a year to the state GDP.
New York is competing with other states and countries to build a biotech and life sciences industry that could help revitalize the economies of Upstate and Western New York. Critical to this effort is the creation of public policies that balance the needs of industry with protections for consumers. The referenced budget proposal to codify the Pharmaceutical Research and Manufacturers of America (PhRMA) Code and regulate relationships between biopharmaceutical companies and healthcare providers would disrupt this balance and mark New York as an enemy of the very industry we are trying to attract. The effects of enacting this legislation would be harmful to New York’s economic recovery and the goal of diversifying the economy.
The biopharmaceutical industry is heavily regulated by several federal entities, including the U.S. Department of Health and Human Services and the Food and Drug Administration (FDA). Materials that pharmaceutical companies distribute to healthcare providers (which the budget proposal seeks to address) are already regulated by the FDA. In addition to federal regulation, the industry established the PhRMA Code—a tool companies use to structure their compliance programs. Critical to the Code’s effectiveness is the ability to update it as business practices change, which would be difficult if today's language were enacted into law. Codifying the Code and legislating existing conduct would add a burdensome layer of complexity to the way a company does business in New York, jeopardizing the nearly 11,000 clinical trials here and stifling the growth of the biotechnology industry sector, which currently contributes $8.4 billion to New York State’s economic output.
Our neighbors in New Jersey and Connecticut are well positioned to attract these critical industries and have already begun to do so with policies that stimulate economic growth, not burden it with regulatory hurdles. In order for New York to stay competitive and ensure that we do not limit our economy at the time when we should be promoting it most, the Partnership respectfully urges the Legislature to oppose this measure. Thank you for your consideration.