October 23, 2000
Bipartisan Consumer Bloodletting
Drove Bush-Berlanga Drug Policy

Hugo Berlanga Legislated for Drug Maker Before Becoming its Hired Gun



In a rare candid moment in last week’s debate, George W. Bush tackled allegations that he is too cozy with drug companies by invoking the name “Hugo Berlanga.”

Bush said Berlanga, who was the Democratic chair of the Texas House Public Health Committee until 1998, accompanied him to St. Louis “to tout our record on health in Texas.” Using Berlanga as a poster boy for his own bipartisan pragmatism, Bush said, “I didn’t care whether he was a Republican or a Democrat. What I cared about is could we work together. That’s what Washington, D.C. needs.”

Berlanga exemplifies how government works in Austin—as in Washington. He resigned as a powerful committee chair in March 1998 to become a revolving-door hired gun. By 1999, Berlanga billed 22 lobby clients between $635,000 and $1.3 million. One-third of these clients were health interests affected by his old committee.

As House Public Health Committee chair, Berlanga authored a sweetheart 1997 bill for future lobby client DuPont Pharmaceuticals; Texas’ pragmatic governor signed it into law. The next year, DuPont Pharmaceuticals pragmatically put Berlanga on a lobby retainer of between $50,000 and $100,000 a year.

Some 2 million people, most of whom are elderly people with heart disease, take DuPont’s Coumadin to thin their blood. In 1996 the FDA approved a generic substitute called “warfarin.” DuPont then lobbied state governments to restrict sales of this generic, which sells for about half the price of Coumadin. Just three states passed these sweetheart bills.

Berlanga’s bill (HB 2571) barred pharmacists from selling warfarin and seven other generic “narrow therapeutic index drugs” unless a doctor explicitly authorizes a generic substitution (this class of therapeutic drugs only works properly when dosages are precisely controlled). Estimates predicted that the Texas law would protect $20 million in annual name-brand drug sales—led by DuPont’s Coumadin.

To counter this rip-off, the FDA wrote physicians and state regulators in 1998, restating its finding that the generic product was as effective as Coumadin.

A state judge barred the Texas Pharmacy Board’s gubernatorial appointees from implementing Berlanga’s law in December 1998, ruling that they failed to justify a policy that would cost Texans millions of dollars. The Board completely abandoned this anti-competitive policy in February 2000. •
 

Hugo Berlanga’s 1999
Revolving-Door Lobby Clients
 
Lobby Contract Value
Client
Max.
Min.
Coalition For Nurses In Advanced Practice
$150,000
$100,000
AT&T
$100,000
$50,000
City Of Austin
$100,000
$50,000
City of Corpus Christi
$100,000
$50,000
Driscoll Children's Hospital
$100,000
$50,000
DuPont Pharmaceuticals Co.
$100,000
$50,000
Patton Boggs, LLP
$100,000
$50,000
Port of Corpus Christi
$100,000
$50,000
Webb County
$100,000
$50,000
Accident & Injury Pain Centers, Inc.
$50,000
$25,000
Incarnate Word Health Systems
$50,000
$25,000
Martex Energy
$50,000
$25,000
Sagem Morpho
$50,000
$25,000
Waste Control Specialists
$50,000
$25,000
Workers Compensation Health Clinic, Inc.
$25,000
$10,000
Chicago Title Insurance Co.
$10,000
$0
Commonwealth Land Title Insurance Co.
$10,000
$0
Lawyers Title Insurance Corporation
$10,000
$0
Partners Title Co.
$10,000
$0
Security Union Title Insurance Co.
$10,000
$0
Ticor Title Insurance Company
$10,000
$0
Transnation Title Insurance Co.
$10,000
$0
Totals
$1,295,000
$635,000

For more on this issue, see:

 “Bush’s Pal, the Drug Lobbyist,” Newsweek, October 30 [www.msnbc.com/news/479674.asp]; and
“Bush Signed Texas Drug Law,” Associated Press October 17, 2000 [www.latimes.com/news/politics/elect2000/pres/wire2/20001017/tCB00V0944.html]
 

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Texans for Public Justice is a non-partisan, non-profit policy & research organization
 which tracks the influence of money in politics.


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