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Business
Trade group sets new member criteria
by Michael McCoy
May 15, 2017
| A version of this story appeared in
Volume 95, Issue 20
The board of the trade association Pharmaceutical Research & Manufacturers of America has approved new criteria for membership that emphasizes R&D. The group also eliminated the “associate” category of membership. It now requires all members to have, on average over three years, an R&D-to-sales ratio of 10% or greater and R&D spending of at least $200 million per year. As a result, 22 companies—several of which have been criticized for their drug pricing practices—are no longer members.
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