Drug firms back bill to reveal doctor payments

May 23, 2008 at 3:33AM

Drug companies and makers of medical devices have endorsed legislation to create a national registry that for the first time would disclose their payments to doctors.

Two trade groups, the Pharmaceutical Research and Manufacturers Association and the Advanced Medical Technology Association, are backing the measure proposed by Sens. Charles Grassley, R-Iowa, and Herb Kohl, D-Wis., the lawmakers said Thursday.

The announcement solidifies industry support for the legislation after Eli Lilly & Co. last week became the first major drugmaker to endorse it. The database would show gifts, speaking fees and paid research agreements, which consumer groups and lawmakers say can be used to promote products and sway doctors' choices in prescribing.

"I applaud your efforts and believe better information in this area will build confidence that these relationships are designed ultimately to benefit patients," said Billy Tauzin, a former congressman and president of the pharmaceutical trade group.

The legislation calls for posting the payments on the Internet. The measure is similar to laws in Minnesota and three other states. The federal law would preempt state reporting requirements.

The drug industry spends an estimated $19 billion annually on doctors, according to the lawmakers. Companies would have to disclose payments of $50 or more only to doctors who get a total of at least $500 in a year, an aide to Kohl said.

Medtronic Inc., Zimmer Holdings Inc., Merck & Co. and AstraZeneca Plc have also supported the measure, according to the lawmakers. The Association of American Medical Colleges, which represents almost 400 teaching hospitals and all accredited U.S. medical schools, endorsed the bill May 2.

BLOOMBERG NEWS

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