Healthy Skepticism Library item: 16689

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Publication type: news

Favole JA
Grassley Probe Of Health Group May Show Deeper Pharma Ties
Dow Jones Newswires 2009 Oct 27
http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200910221848dowjonesdjonline001058&title=grassley-probe-

Full text:

A probe by Sen. Charles Grassley, R.-Iowa, into the ties between pharmaceutical companies and a leading patient advocacy group, the National Alliance on Mental Illness, may show their relationship goes deeper than previous thought.

Grassley’s investigation shows the national group has received more than $28 million from pharmaceutical companies in the last four years. However, that number doesn’t include pharmaceutical contributions given to NAMI’s 50 state chapters or related foundations. Grassley is now demanding that information, according to documents obtained by Dow Jones Newswires.

Earlier this month, Grassley staffers wrote letters to the state chapters of the group demanding they turn over financial information detailing how much they receive from pharmaceutical companies. The investigation is part of a broad look into conflict of interests and how industry influence might be driving prescription drug use.

But more than conflict of interests are at stake. Pfizer Inc. (PFE) is facing a whistleblower lawsuit in federal court in Massachusetts where a former employee alleges the company used NAMI to illegally promote its schizophrenia drug Geodon off label. A company representative wasn’t immediately available to comment.

Since the beginning of 2009, Pfizer has given more than $60,000 to NAMI for fundraisers in Boston and New York and for general operational support, according to documents the company posted online.

Michael Fitzpatrick, executive director of NAMI’s national office, said the state chapters operate independently of the national organization. Still, he said he has “encouraged” the state chapters to respond to Grassley’s request.

Though funding varies from chapter to chapter, Fitzpatrick said pharmaceutical funding at some of the group’s larger state organization makes up about 5% of their budget. He said he doesn’t know if pharmaceutical money given to state chapters, once added up, will outpace the money given to the national organization.

At the national group, pharmaceutical funding makes up about 50% of its annual $10 million to $13 million budget.

Grassley’s probe of NAMI was first reported by The New York Times.

Fitzpatrick said the group is committed to transparency and notes that starting this year it posts all contributions over $5,000 online. Pharmaceutical money, he said, has been essential in underwriting various programs that NAMI couldn’t do alone. For instance, the money has helped the group fund weekly meetings in 300 locations to allow people suffering from mental illnesses to come together and discuss their problems.

AstraZeneca (AZN) has given more than $250,000 to a variety of NAMI chapters from January to June 2009, according to information the company posted online. The money goes to fund NAMI fundraising walks and educational outreach efforts.