Statement on Signing the
Prescription Drug Marketing Act of 1987
I
am today signing H.R. 1207, the ``Prescription Drug Marketing Act of 1987,''
with mixed feelings.
On
the one hand, I support the expressed goal of this legislation, which is to
reduce potential public health risks that may result from the distribution of
mislabeled, subpotent, counterfeit, or adulterated
prescription drugs in the secondary source market, the so-called ``diversion
market.'' The investigations and prosecutions involving counterfeit and
diverted drugs that have been conducted by the Department of Justice during the
past few years have demonstrated that the principal factor facilitating the
illegal activity that this bill is designed to combat is the almost total lack
of traceability of drug products in the diversion market. This bill, to some
extent, provides a response to this problem.
On
the other hand, I have grave reservations about the bill's provision that would
require States to adhere to Federal standards when licensing wholesale drug
distributors. This provision represents a substantial intrusion into
traditional State responsibilities and prerogatives. The States have always had
the primary role in the regulation of wholesale drug distributors, and this
bill would substitute the Federal Government for the States in that role.
This
provision of H.R. 1207 is contrary to fundamental principles of federalism upon
which our Constitution is based. Accordingly, I have directed the Department of
Justice to submit to the Congress legislation repealing this portion of the
bill, and I urge the Congress to enact this legislation promptly.
I
am also troubled about the bill's provision that would generally prohibit
certain types of beneficial competition in the sale of pharmaceuticals by
hospitals and other health care providers. Such competition from innovative
health care providers can benefit consumers through increased choices and lower
prices, and should be encouraged, rather than discouraged. To be specific, I am
very concerned that this legislation could impose on the sick and the elderly
increased prices for prescription drugs. Consequently, I have requested the
Attorney General to monitor the implementation of this portion of the bill and
to make recommendations for remedial actions if warranted.
Finally,
although the lack of traceability of drug products in the diversion market is a
valid concern that I share, the magnitude of the public health problem created
by diverted drugs is still not clear. I am therefore also concerned by
provisions of the bill requiring use of substantial amounts of scarce Federal
public health resources to police these practices.
Despite
these concerns, I am willing to accept the view of the Congress that H.R. 1207
can assist in preventing potential health and safety problems for the American
public. For this reason, I am approving this bill.
Ronald
Reagan
The
White House,
Note: H.R. 1207,
approved April 22, was assigned Public Law No. 100 - 293.