At Democratic And Republican Conventions, Pharma Donates Money, Hosts Events

Full article reprinted from "The Pink Sheet" – Aug. 25, 2007

Find out what top executives from the biomedical industry are doing to connect with legislators and celebrities at the Democratic National Convention in Denver this week and at the Republican National Convention in St. Paul next week.

Full article reprinted from "The Pink Sheet" – Aug. 25, 2007

Top executives from the pharmaceutical industry will be hobnobbing with legislators and celebrities at the Democratic National Convention in Denver this week and at the Republican National Convention in St. Paul next week.

The Pharmaceutical Research and Manufacturers of America and seven individual companies - Abbott, Amgen, AstraZeneca, Lilly, Merck, Novartis and Pfizer - are sponsors of the host committees of the conventions and thus have access to a variety of functions. They are also sponsoring several luncheons and receptions and participating in roundtable discussions.

For the Democratic Convention, Lilly teamed up with the National Black Caucus of State Legislatures and the Creative Coalition, an entertainment advocacy group, to host an Aug. 24 reception and VIP dinner in celebration of African American leaders. The individuals being honored include Spike Lee and the head of the NBCSL.

Lilly and the Creative Coalition are also hosting a luncheon Aug. 26 with the theme of raising awareness about diabetes. The Creative Coalition is co-sponsoring another luncheon with AstraZeneca the following day, which will be held in honor of The Campaign for Mental Health Reform.

AstraZeneca Global CEO David Brennan and U.S. CEO Tony Zook and Lilly CEO John Lechleiter are among the industry executives participating in the conventions. In addition to talking to politicians, they will get a chance to mingle with the Creative Coalition's delegation of Hollywood celebrities, including Spike Lee, Quentin Tarantino, Susan Sarandon and Forest Whitaker.

Pfizer CEO Jeff Kindler and Amgen CEO Kevin Sharer will participate in a Health Roundtable at the Democratic Convention. Other speakers on the panel include former Sen. Tom Daschle, Boston Mayor Thomas Menino, San Francisco Mayor Gavin Newsom, Colorado Lt. Governor Barbara O'Brien and Medtronic Senior Vice President for Medicine & Technology Stephen Oesterle.

Among other events, PhRMA is hosting a brunch dubbed "Sharing Miracles" at both conventions. The gathering will feature patient stories, cooking demonstrations and appearances by television talk show host Montel Williams and actor Joey Pantoliano of The Sopranos.

An invitation-only event, PhRMA expects 300 to 400 attendees, including members of Congress, state officials and representatives from member companies. PhRMA Chairman and Merck CEO Richard Clark will be there, as will AstraZeneca's Brennan, the association's chairman-elect.

The Democratic Convention, to be held Aug. 25-28 at the Pepsi Center in Denver, is expected to draw 50,000 people, including 6,000 delegates, 14,000 party members, elected officials and others and 15,000 members of the media, according to the host committee. Similar numbers are expected at the Republican Convention, to be held Sept. 1-4 at the Xcel Energy Center in St. Paul.

While industry has always tried to maintain strong relations with the country's political leadership, outreach at this year's conventions may be particularly important because of the likelihood of a debate on health policy next year in Congress and the fact that both presidential nominees have attacked pharmaceutical companies in their advertising campaigns.

Groups Criticize Industry Backing

Both conventions are a magnet for many companies, organizations and lobbyists seeking to interact with politicians and policymakers. The Campaign Finance Institute, which is tracking donations to the conventions, and Public Citizen criticize corporate sponsorship of the convention and industry-sponsored events as a way for companies to circumvent restrictions on "soft money" donations.

CFI says that as of Aug. 8, 173 organizations, primarily corporations, had donated to the conventions through the host committees, which are separate from the national party convention committees. The role of the host committees is to raise money to pay for the conventions, organize volunteers and provide hospitality to delegates and the media.

In its report, "Inside Fundraising for the 2008 Party Conventions: Party Surrogates Gather Soft Money While Federal Regulators Turn a Blind Eye," CFI says sponsors receive invitations to private events with elected officials and party leaders, the chance to sponsor state delegation receptions and welcoming parties, and access to VIP areas in the convention auditorium.

CFI says the roundtable discussions, such as the health care roundtable, are co-hosted by donors who contribute $100,000 to $500,000.

Host committees have until 60 days after the conventions to disclose the contributions they receive. CFI notes that a few companies have publicly revealed their donations, including Lilly, which donated $250,000 to each host committee. Amgen and Merck said they also contributed $250,000 to each committee.

Ken Johnson, PhRMA's Senior VP of Communications and Public Affairs, said the association was making a "sizable contribution" of equal amount to both conventions. He declined to say how much, saying it was up to the host committees to divulge.

Public Citizen's governmental affairs lobbyist Craig Holman issued his own report on convention funding in which he describes the sponsorship levels. The RNC sponsorship packages are $500,000 for gold, $250,000 for silver, $100,000 for bronze and $50,000 for Viking. The DNC has five sponsorship levels: $1 million presidential, $500,000 platinum, $250,000 gold, $100,000 silver, and $52,800 for mile-high-plus sponsorship.

Exceptions To The Ethics Rules

Companies are also able to interact with legislators by hosting receptions and other events. While congressional rules prohibit lobbyists from honoring members of Congress at convention-related parties and prohibit members from receiving gifts from lobbyists, Holman said there are loopholes.

For example, members of Congress may attend receptions hosted by lobbying organizations if the food and refreshment are of nominal value. They also can accept dinner, refreshments and entertainment at an event which is to be attended by at least 25 people outside Congress. And members and staff may attend a charity event for free if the event is to raise funds for a legitimate charitable organization.

A spokesperson for Lilly said that as a result of the new ethics rules, the company was partnering with the Creative Coalition, a non-partisan, not-for-profit group, at the convention events. The Creative Coalition is also co-sponsoring events with the Service Employees International Union and the National Association of Realtors, and hosting a reception for Bank of America.

"Corporations and their lobbyists see the national nominating conventions as an ideal opportunity to buy access and influence with the presidential campaigns, lawmakers and party leaders," Holman says.

PhRMA's Johnson dismisses such comments. They are made by "professional critics" who stay in business by being critical, he said. "I can't imagine a single person who will attend our brunch will sit around and talk shop."

BIO, Medtronic, AARP Among Attendees

In addition to pharma companies, several other corporations and groups in the health industry will have a presence at the convention. Medtronic is a sponsor of both host committees, as is AARP. Boston Scientific is a sponsor of the Republican convention host committee.

Numerous other groups who are not convention sponsors will be hosting events. The Biotechnology Industry Organization is co-sponsoring a competitiveness and innovation roundtable at the Democratic Convention, which is being moderated by the Information Technology and Innovation Foundation.

The American Medical Association, the American College of Cardiology, the American Academy of Family Physicians and several other health care groups are holding a joint party at the Democratic Convention. And the National Association of Chain Drug Stores is co-sponsoring a late night party at both conventions on the successive Monday nights. Other co-sponsors include the Distilled Spirits Council, the U.S. Chamber of Commerce, and the congressional newspaper The Hill.

The Hill will also be publishing convention-specific issues in Denver and St. Paul every day of each convention. AstraZeneca is taking advantage of the publication's schedule. The company is running its "Stand For" ads - in which an employee talks about various issues the company supports - in The Hill during the conventions. One of the ads headlined "We Stand for Patients" says the company is "committed to a strong, well-resourced FDA."

- Brenda Sandburg

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© FDC-Windhover 2008 - All Rights Reserved

Top executives from the pharmaceutical industry will be hobnobbing with legislators and celebrities at the Democratic National Convention in Denver this week and at the Republican National Convention in St. Paul next week.

The Pharmaceutical Research and Manufacturers of America and seven individual companies - Abbott, Amgen, AstraZeneca, Lilly, Merck, Novartis and Pfizer - are sponsors of the host committees of the conventions and thus have access to a variety of functions. They are also sponsoring several luncheons and receptions and participating in roundtable discussions.

For the Democratic Convention, Lilly teamed up with the National Black Caucus of State Legislatures and the Creative Coalition, an entertainment advocacy group, to host an Aug. 24 reception and VIP dinner in celebration of African American leaders. The individuals being honored include Spike Lee and the head of the NBCSL.

Lilly and the Creative Coalition are also hosting a luncheon Aug. 26 with the theme of raising awareness about diabetes. The Creative Coalition is co-sponsoring another luncheon with AstraZeneca the following day, which will be held in honor of The Campaign for Mental Health Reform.

AstraZeneca Global CEO David Brennan and U.S. CEO Tony Zook and Lilly CEO John Lechleiter are among the industry executives participating in the conventions. In addition to talking to politicians, they will get a chance to mingle with the Creative Coalition's delegation of Hollywood celebrities, including Spike Lee, Quentin Tarantino, Susan Sarandon and Forest Whitaker.

Pfizer CEO Jeff Kindler and Amgen CEO Kevin Sharer will participate in a Health Roundtable at the Democratic Convention. Other speakers on the panel include former Sen. Tom Daschle, Boston Mayor Thomas Menino, San Francisco Mayor Gavin Newsom, Colorado Lt. Governor Barbara O'Brien and Medtronic Senior Vice President for Medicine & Technology Stephen Oesterle.

Among other events, PhRMA is hosting a brunch dubbed "Sharing Miracles" at both conventions. The gathering will feature patient stories, cooking demonstrations and appearances by television talk show host Montel Williams and actor Joey Pantoliano of The Sopranos.

An invitation-only event, PhRMA expects 300 to 400 attendees, including members of Congress, state officials and representatives from member companies. PhRMA Chairman and Merck CEO Richard Clark will be there, as will AstraZeneca's Brennan, the association's chairman-elect.

The Democratic Convention, to be held Aug. 25-28 at the Pepsi Center in Denver, is expected to draw 50,000 people, including 6,000 delegates, 14,000 party members, elected officials and others and 15,000 members of the media, according to the host committee. Similar numbers are expected at the Republican Convention, to be held Sept. 1-4 at the Xcel Energy Center in St. Paul.

While industry has always tried to maintain strong relations with the country's political leadership, outreach at this year's conventions may be particularly important because of the likelihood of a debate on health policy next year in Congress and the fact that both presidential nominees have attacked pharmaceutical companies in their advertising campaigns.

Groups Criticize Industry Backing

Both conventions are a magnet for many companies, organizations and lobbyists seeking to interact with politicians and policymakers. The Campaign Finance Institute, which is tracking donations to the conventions, and Public Citizen criticize corporate sponsorship of the convention and industry-sponsored events as a way for companies to circumvent restrictions on "soft money" donations.

CFI says that as of Aug. 8, 173 organizations, primarily corporations, had donated to the conventions through the host committees, which are separate from the national party convention committees. The role of the host committees is to raise money to pay for the conventions, organize volunteers and provide hospitality to delegates and the media.

In its report, "Inside Fundraising for the 2008 Party Conventions: Party Surrogates Gather Soft Money While Federal Regulators Turn a Blind Eye," CFI says sponsors receive invitations to private events with elected officials and party leaders, the chance to sponsor state delegation receptions and welcoming parties, and access to VIP areas in the convention auditorium.

CFI says the roundtable discussions, such as the health care roundtable, are co-hosted by donors who contribute $100,000 to $500,000.

Host committees have until 60 days after the conventions to disclose the contributions they receive. CFI notes that a few companies have publicly revealed their donations, including Lilly, which donated $250,000 to each host committee. Amgen and Merck said they also contributed $250,000 to each committee.

Ken Johnson, PhRMA's Senior VP of Communications and Public Affairs, said the association was making a "sizable contribution" of equal amount to both conventions. He declined to say how much, saying it was up to the host committees to divulge.

Public Citizen's governmental affairs lobbyist Craig Holman issued his own report on convention funding in which he describes the sponsorship levels. The RNC sponsorship packages are $500,000 for gold, $250,000 for silver, $100,000 for bronze and $50,000 for Viking. The DNC has five sponsorship levels: $1 million presidential, $500,000 platinum, $250,000 gold, $100,000 silver, and $52,800 for mile-high-plus sponsorship.

Exceptions To The Ethics Rules

Companies are also able to interact with legislators by hosting receptions and other events. While congressional rules prohibit lobbyists from honoring members of Congress at convention-related parties and prohibit members from receiving gifts from lobbyists, Holman said there are loopholes.

For example, members of Congress may attend receptions hosted by lobbying organizations if the food and refreshment are of nominal value. They also can accept dinner, refreshments and entertainment at an event which is to be attended by at least 25 people outside Congress. And members and staff may attend a charity event for free if the event is to raise funds for a legitimate charitable organization.

A spokesperson for Lilly said that as a result of the new ethics rules, the company was partnering with the Creative Coalition, a non-partisan, not-for-profit group, at the convention events. The Creative Coalition is also co-sponsoring events with the Service Employees International Union and the National Association of Realtors, and hosting a reception for Bank of America.

"Corporations and their lobbyists see the national nominating conventions as an ideal opportunity to buy access and influence with the presidential campaigns, lawmakers and party leaders," Holman says.

PhRMA's Johnson dismisses such comments. They are made by "professional critics" who stay in business by being critical, he said. "I can't imagine a single person who will attend our brunch will sit around and talk shop."

BIO, Medtronic, AARP Among Attendees

In addition to pharma companies, several other corporations and groups in the health industry will have a presence at the convention. Medtronic is a sponsor of both host committees, as is AARP. Boston Scientific is a sponsor of the Republican convention host committee.

Numerous other groups who are not convention sponsors will be hosting events. The Biotechnology Industry Organization is co-sponsoring a competitiveness and innovation roundtable at the Democratic Convention, which is being moderated by the Information Technology and Innovation Foundation.

The American Medical Association, the American College of Cardiology, the American Academy of Family Physicians and several other health care groups are holding a joint party at the Democratic Convention. And the National Association of Chain Drug Stores is co-sponsoring a late night party at both conventions on the successive Monday nights. Other co-sponsors include the Distilled Spirits Council, the U.S. Chamber of Commerce, and the congressional newspaper The Hill.

The Hill will also be publishing convention-specific issues in Denver and St. Paul every day of each convention. AstraZeneca is taking advantage of the publication's schedule. The company is running its "Stand For" ads - in which an employee talks about various issues the company supports - in The Hill during the conventions. One of the ads headlined "We Stand for Patients" says the company is "committed to a strong, well-resourced FDA."

- Brenda Sandburg

Start your 30-day, risk-free trial of "The Pink Sheet" – Top down, comprehensive weekly industry insight and analysis.

© FDC-Windhover 2008 - All Rights Reserved