Life Sciences

Lilly CEO warns gift ban in Massachusetts could hurt innovation

Pharma Compliance Alert, September 24, 2008

A bill recently signed into law in Massachusetts could stifle clinical research in the state and restrict market access, Eli Lilly’s President and CEO John C. Lechleiter warned in a speech at the Associated Industries of Massachusetts Executive Forum.

Lechleiter said to develop new therapies, pharmaceutical and biotech companies need intellectual property protection, pricing freedom, and market access. He said innovation only becomes meaningful when physicians can learn about it and use it to benefit patients. Because physicians prefer to learn from other physicians, Lechleiter said companies such as Lilly must be able to compensate doctors for their time when they speak to scientific and educational conferences about new discoveries and products. The new Massachusetts law could affect how physicians are paid for legitimate speaking activities.

Researchers are conducing more than 5,600 clinical trials in Massachusetts, but Leihleiter said complex financial disclosure requirements about funding for clinical trial research almost certainly means fewer trials will take place in the state in the future. Life science investment will be scared away from Massachusetts, Leihleiter said. “That’s not good for innovation, for our industry, or for the state’s economy,” he said.

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