This bill would amend the public health law in relation to disclosure of gifts provided by drug
manufacturers or wholesalers to healthcare providers. The Business Council opposes this bill.

S.2971/A.7468 would segregate one sector of the business community and subject them to a
litany of rules, reports and penalties for practices common across all sectors of society -- the
legitimate marketing of goods and services. This regulatory initiatives is excessive, and should be
rejected.

As we have stated repeatedly, a patient can not receive prescription medication without a
physician writing the script. The pharmaceutical industry has developed a set of voluntary
guidelines to ensure that exchanges of information with providers are for educational purposes
and not for the personal benefit of a physician. Likewise, the HHS Office of Inspector General has
issued marketing guidelines to ensure that reciprocal arrangements are prohibited between
manufacturers and health professionals.

We have seen no data to support the proponent’s assertion that doctor prescribing patterns are
altered from lower-cost drug options and generics. In New York State, generic drugs are widely
used and virtually every Medicaid patient receives generic drugs when available. Nationally, over
half of all prescriptions are generic medicines. This would seem to contradict the “undue
influence” charge leveled at the industry.

Pharmaceutical products and technological innovation play important roles in the advancement of
medicine in the United States, leading to improvements in public health and extended lives for our
citizens. The pharmaceutical industry has a critical role in educating providers about the benefits
and dangers of utilizing medical advancements -- a collaboration that brings enormous benefits to
patients, whether they suffer a sudden onset of illness or a chronic or debilitating condition.

We believe this legislation will impair effective communication between the pharma industry and
doctors. For these reasons, The Business Council oppose this legislation.