Isabella Carter
Pharmaceutical companies have been known to contribute financially to political campaigns, with drug companies and their lobbying groups donating roughly $1.6 million in the first six months of 2021. In the 2020 election cycle, more than two-thirds of Congress received funding from the pharmaceutical industry, with 72 senators and 302 members of the House of Representatives cashing checks. This spending highlights the drug industry's influence in Washington, despite criticism from Congress and the White House over high drug prices. The 2024 election cycle is seeing Big Pharma CEOs support both sides of the aisle, with some companies contributing to Democrats and others to Republicans. Overall, the pharmaceutical industry has been a significant political spender, with a historical preference for Republican candidates.
| Characteristics | Values |
|---|---|
| Pharmaceutical companies fund political campaigns | Yes |
| Pharmaceutical companies' spending on political campaigns | $4.7 billion from 1999 to 2018, with an average of $233 million per year |
| Pharmaceutical companies' spending on lobbying | $2.2 billion from 1999 to 2018, with an average of $114.26 million per year |
| Pharmaceutical companies' spending on campaign contributions | $414 million from 1999 to 2018, with an average of $20.7 million per year |
| Pharmaceutical companies' spending on presidential candidates | $22 million from 1999 to 2018 |
| Pharmaceutical companies' spending on congressional candidates | $214 million from 1999 to 2018 |
| Pharmaceutical companies' spending on political campaigns in 2020 | $14 million |
| Pharmaceutical companies' spending on political campaigns in 2023 and 2024 | $12,009,986 |
| Pharmaceutical companies' spending on Democrats in 2023 and 2024 | $5.2 million |
| Pharmaceutical companies' spending on Republicans in 2023 and 2024 | $6.6 million |
| Pharmaceutical companies' spending on political campaigns in the first half of 2024 | Eli Lilly's PAC spent more than $180,000; J&J's PAC spent nearly $500,000 |
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What You'll Learn
Donations from pharmaceutical companies to Democrats
Pharmaceutical companies and their executives have been known to contribute to political campaigns, and it is not uncommon for them to donate to both sides of the aisle. In the 2024 election cycle, pharma-related political action committees (PACs) have contributed to Democrats and Republicans in congressional races nearly evenly.
Some pharmaceutical companies have shown a preference for donating to Democratic candidates. For instance, the Carolina Victory Fund, which has received funding from Eli Lilly's PAC, has given 100% of its funding to Democrats. Similarly, the PAC of Denmark-based Novo Nordisk has given 49% of its funding to Democrats in the 2023-2024 election cycle. Novartis, a Swiss company, has historically contributed more to Democrats over the last 10 years, although its 2024 contributions have leaned slightly more Republican.
Pfizer's donations have also favored Democrats, with contributions from employees and affiliates strongly supporting Democratic candidates. In the 2020 election cycle, Pfizer's political action committee contributed to 228 lawmakers, totaling over $14 million in campaign donations. Overall, donations from individuals tied to Pfizer have been among the highest among pharma companies, with $1.1 million going to Democrats and liberal groups.
While some pharmaceutical companies have shown a preference for donating to Democrats, it is worth noting that these contributions may not necessarily reflect the personal political beliefs of the donors. Pharmaceutical companies and their executives may donate to both Democratic and Republican candidates to build relationships and gain influence, regardless of their own political affiliations.
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Donations from pharmaceutical companies to Republicans
Pharmaceutical companies have been known to fund political campaigns, and they have traditionally supported Republican candidates. According to Open Secrets, since the 1990 election cycle, Republicans have received around 64% of the average industry contributions. In the 2020 election cycle, the industry donated $14 million, with 72 senators and 302 members of the House of Representatives receiving donations from the pharmaceutical industry.
Pfizer's political action committee alone contributed to 228 lawmakers, and Amgen's PAC donated to 218, meaning that each company helped fund the campaigns of nearly half the lawmakers on Capitol Hill. Pfizer PAC has also contributed significantly more to Republicans than Democrats, with about 63% of donations going to Republicans.
In the first half of 2024, Eli Lilly's PAC gave more than $180,000 to Republicans and Democrats in House and Senate races, as well as equal amounts to both parties' congressional and senatorial committees. However, Eli Lilly's CEO, David Ricks, donated the maximum individual contribution to Republican Congressman Brett Guthrie from Kentucky.
The J&J PAC has given nearly $500,000 in 2023 and 2024 to Democrats and Republicans running for Congress, with contributions leaning slightly more towards Republicans. The PAC has contributed more than $26,000 to various candidates in October.
Denmark-based Novo Nordisk's PAC has given more than $300,000 in the 2023-2024 election cycle, with 51% of funds going to Republicans.
The U.K.'s AstraZeneca also has a PAC that slightly favored Republicans in this election, although the amount contributed has declined over the last several years, with 2024 being the lowest level of contribution in 20 years.
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Pharmaceutical company CEOs donating to political campaigns
Pharmaceutical companies have been known to be significant political spenders, and their CEOs are no exception. While CEOs of pharmaceutical companies based outside the U.S. are prohibited by federal law from contributing to U.S. election candidates, CEOs of U.S.-based companies have donated substantial amounts to political campaigns.
For instance, in the run-up to the 2020 election, 72 senators and 302 members of the House of Representatives received funds from the pharmaceutical industry, with Pfizer's political action committee contributing to 228 lawmakers. Eli Lilly, Takeda Pharmaceutical, Merck, and Gilead Sciences were also among the companies donating to political campaigns. Leading up to the 2024 election, Eli Lilly's PAC gave more than $180,000 to Republicans and Democrats in House and Senate races, while CEO David Ricks donated the maximum individual contribution to Republican Congressman Brett Guthrie.
Some pharmaceutical CEOs have chosen to donate primarily to political action committees (PACs) rather than directly to individual candidates. For example, J&J CEO Joaquin Duato has consistently donated to the J&J PAC, which has contributed nearly $500,000 to Democrats and Republicans in Congress. Similarly, AbbVie CEO Robert Michael has been donating monthly to the company's PAC, and Merck CEO Robert Davis has been a consistent donor to the Merck PAC, contributing to both Democratic and Republican congressional candidates.
While some pharmaceutical CEOs spread their donations across both major parties, others appear to favour one party over the other. For instance, in the 2024 election cycle, donations from employees of pharmaceutical companies have shown a slight preference for Democrats, with Pfizer donations totalling $1.1 million, $690,000 of which went to Democrats. However, it's worth noting that the pharmaceutical industry has traditionally supported Republican candidates, with Republicans receiving around 64% of industry contributions since the 1990 election cycle.
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Political action committees (PACs) and their role in funding campaigns
Political action committees (PACs) are organisations that raise and distribute campaign funds to candidates seeking political office. They are generally formed by corporations, labour unions, trade associations, or other organisations or individuals. PACs were first created in 1944 to assist the reelection of President Franklin D. Roosevelt, and they have since become an integral part of political campaigns in the United States.
PACs may solicit contributions from various sources, including individuals, corporations, labour unions, and other PACs. There are different types of PACs, including separate segregated funds (SSFs), non-connected committees, and Super PACs. SSFs are established by corporations, labour unions, or trade associations and can only solicit contributions from associated individuals. In contrast, non-connected committees are not affiliated with any specific entity and can accept donations from the general public. Super PACs can receive unlimited contributions from various sources to finance independent expenditures and political activities.
In the context of pharmaceutical companies, PACs play a significant role in funding political campaigns. Pharmaceutical PACs have spent millions of dollars on campaign contributions, with the top lobbying client being the Pharmaceutical Research & Manufacturers of America (PhRMA). Pharmaceutical companies have traditionally supported Republican candidates, but in recent years, there has been a shift towards contributing to both Democratic and Republican candidates and causes.
For example, in the 2024 election cycle, Eli Lilly's PAC contributed to both parties in House and Senate races. Similarly, CEOs of pharmaceutical companies, such as Robert Davis of Merck, have donated to their respective company PACs, which then contribute to Democratic and Republican candidates. This strategy of supporting both sides of the aisle is common among pharmaceutical companies and their leaders, as they seek to build relationships with politicians and influence policy decisions.
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The impact of donations on drug pricing policies
The impact of pharmaceutical companies' donations on drug pricing policies has been significant. The industry's campaign contributions are strategically organized, with drug companies and their lobbying groups donating to key lawmakers with "surgical precision". This has resulted in more than two-thirds of Congress receiving donations from pharmaceutical companies, according to a STAT analysis.
The drug industry's clout in Washington is evident, as elected officials who regulate the healthcare industry routinely accept six-figure sums. This influence has been used to oppose major drug cost-containment measures, with the industry contributing to ballot measure committees in key states. For example, in 2005, PhRMA and pharmaceutical companies supported California's Proposition 78, which would have allowed them to offer discounts on drugs to low-income residents without extending those discounts to insured patients. This proposition was rejected by voters.
In the lead-up to the 2020 election, the pharmaceutical industry donated $14 million, with Pfizer's political action committee alone contributing to 228 lawmakers. This influence has impacted drug pricing policies, as the industry argues that greater government intervention in setting prices would harm new drug development. While this argument is disputed by drug pricing experts, it has prevented Democrats from agreeing on a plan to control drug prices, despite broad support for the idea among adults of all political parties.
The impact of these donations is also seen in the industry's ability to shape policies related to the 340B discount program and pharmacy benefit managers. Additionally, the industry has contributed to the campaigns of lawmakers who voted against certifying the results of the 2020 election, which has influenced the GOP's total fundraising haul.
Overall, the pharmaceutical industry's donations have had a significant impact on drug pricing policies, influencing elections, shaping legislation, and opposing cost-containment measures.
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Frequently asked questions
Yes, pharmaceutical companies do fund political campaigns. In the 2020 election cycle, more than two-thirds of Congress received funding from the pharmaceutical industry.
The amount of money contributed varies. In 2023 and 2024, pharmaceutical companies spent $12,009,986 on campaign contributions. In 2021, drug companies and their lobbying groups gave approximately $1.6 million in the first six months. From 1999 to 2018, the pharmaceutical and health product industry spent $4.7 billion on lobbying and campaign contributions.
Pharmaceutical companies support both Democratic and Republican candidates. In 2023 and 2024, $6.6 million went to Republicans and $5.2 million to Democrats. However, the industry has historically supported Republican candidates more, with 64% of contributions going to the GOP since the 1990 election cycle.
