(Reuters) – AbbVie Inc is leaving Pharmaceutical Research and Manufacturers of America (PhRMA), the leading U.S. drug industry group said on Thursday.
Politico, which first reported on AbbVie’s exit, said the drugmaker was also leaving the industry group Biotechnology Innovation Organization as well as Business Roundtable, citing a person with knowledge of the matter.
A source familiar with the matter confirmed Reuters about the exits in the Politico report.
Drugmakers suffered a rare defeat earlier this year in failing to stop a bill that allows the government to negotiate prices on select drugs.
Reuters reported in August the pharmaceutical industry spent at least $142.6 million on lobbying Congress and federal agencies in the first half of 2022, more than any industry.
President Joe Biden’s signature Inflation Reduction Act will allow the government to choose 10 drugs to negotiate from among the 50 costliest ones for Medicare, the government healthcare program for people aged 65 and older or disabled, starting in 2026.
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AbbVie said it regularly evaluated its memberships with industry trade associations and decided not to renew with select trade associations, without naming the groups.
“AbbVie has decided not to renew their membership with PhRMA in 2023. This does not change our focus on fighting for the solutions patients and our health care system need,” PhRMA spokesperson Brian Newell said.
(Reporting by Raghav Mahobe and Bhanvi Satija in Bengaluru, Michael Erman in New Jersey; Editing by Krishna Chandra Eluri)