expected to be difficult, timeconsuming and costly, but it will probably be necessary, if we are ever to arrive at an understanding of what drug addiction really is and what we can medically do about it.

It is now necessary to sound a note of caution. Judge Preyer and others of the subcommittee have already pointed out the difficulty of this task. Behind every bit of research, by its very nature, lies the specter of failure. In the wake of every successful drug development program is a collection of half successes and outright failures. It should not be expected that such a program as we are considering here would be exempt from this historical pattern. It seems important, if we proceed as suggested here, that we do so with the great hope of success but at the same time not raise false hopes of any immediate breakthrough, either in the mind of the public or among those unfortunates who are addicted to narcotics. We do not see the miracle drug to cure addiction as a near term possibility.

Mr. Chairman, I hope, as this program goes forward, that it can become a pooling of the resources of the whole medical-scientific community, in industry, in Government, and in the universities and medical schools.

The jobs can't be done as fast, or as well, without enthusiastic participation, for example, of the National Academy of Sciences/National Research Council, the National Institute of Mental Health, and the Federal Addiction Research Center at Lexington, Ky. If I may suggest a starting point, it might be a meeting of research leaders of participating industry, biochemical and medical scientists in university and other research centers, NIMH, and Lexington officials.

Such a meeting, we believe, could be held under the auspices of the National Academy of Sciences/National Research Council. Perhaps the new Special Action Office for Drug Abuse Prevention at the White House could join in the initiative of convening this meeting of scientific leaders.

Parenthetically, we are much impressed by the vigorous new programs being proposed both by the administration and in Congress to control drug abuse and to rehabilitate the users.

As Mr. Stetler pointed out, there are two complicating factors for the pharmaceutical industry in the kind of pooled, targeted research program we are discussing today.

First, because the search for heroin blocking agents is closely related to ongoing research for nonaddicting analgesics-products that have broad market potential, it is not inconceivable that R. & D. success in finding a heroin antagonist would also be a significant advance in analgesic therapy.

Administrative safeguards therefore should be developed to protect each participating firm's rights in any new analgesic product. On the other hand, it should be clearly understood that no rights would accrue to a firm for a compound's use in the public service aspects of heroin addiction control.

Second, the kind of R. & D. pooling we are discussing carries with it the possibility of violation of Federal antitrust laws. I think this point has been covered in enough detail. I just wanted to be on record with it, that it is important for Congress to include in drug abuse legislation appropriate language sanctioning this pooled industry research effort.

In conclusion, Mr. Chairman, S.K. & F. is ready to make a contribution of its scientific expertise and resources on a pooled basis with the rest of industry and the scientific community in general in this crucial area of research.

It is my hope that we can quickly get on with the job as a result of the leadership provided by this subcommittee.

Mr. ROGERS. Thank you very much for an excellent statement and one that goes right to the point, I think, and puts it in proper perspective.

This committee will contact the National Academy of Sciences to see if they will participate; we will also contact Mr. Jaffe as well as the Attorney General, and the Federal Trade Commission and see if we can begin to move to set up some meetings as you have suggested. I think this is what we need: to pool the resources and target in the drugs necessary to defeat this heroin problem.

Mr. Preyer?

Mr. PREYER. Thank you, Mr. Chairman.

And I join with him in commending you. I like your flat statement, "We commit ourselves today to this task." I hope all of the other presidents of our leading drug companies will also be that flat in their commitment. The tides, as you put it, are working together instead of competing in quest for new therapies. I think your statement that your hope is, as this program goes forward, that it can become a pooling of resources of the whole medical, industrial, and scientific community as well as Government, universities, and medical schools, certainly points up what an exciting thing this could be.

You have mentioned, for example, that one of the thrusts of your research would be involving basic research into the understanding of the biological mechanisms involved in addition, so that you are on frontiers of new knowledge here.

And, I think that this is very exciting as a prospect, and we look forward to the results of it. Thank you very much.

Mr. ROGERS. Mr. Nelsen?

Mr. NELSEN. Thank you, Mr. Chairman.

May I express appreciation for your statement, and I want to compliment the chairman of the committee on the record for his idea of asking industry to cooperate with Government in this endeavor. As Mr. Preyer has pointed out, this can be a very exciting effort, and, certainly, one in the public interest. I also want to thank you and your firm for your pledge of cooperation. We can go far with this kind of a program. It will be quite an enterprise and one that we can all be working in for the good of solving a real problem that we have. Thank you very much.

No questions.

Mr. ROGERS. Thank you, Mr. Nelsen.

Dr. Carter?

Mr. CARTER. Certainly, I want to compliment the distinguished president and chairman of the board of this great company for his efforts, as I complimented Mr. Stetler and his group for their work. And, again, I think that our chairman is due great credit for bringing you people here today.

Thank you, Mr. Chairman.
Mr. ROGERS. Thank you.

Mr. Hastings?

Mr. HASTINGS. I have no questions, Mr. Chairman.
Mr. ROGERS. Thank you so much.

We do appreciate the response, and we are grateful for the very fine appearance on short notice of the company and Mr. Stetler of the Pharmaceutical Manufacturing Association. We are grateful for your response, and we are going to follow through, and I think that this will get us on the track and, perhaps, really bring about a breakthrough more rapidly than any other method that I can think of to begin to cure the heroin problem in America.

We appreciate your being here.

The committee will stand adjourned, subject to the call of the Chair. (Whereupon, at 11:12 a.m., the subcommittee adjourned, subject to the call of the Chair.)

SPECIAL ACTION OFFICE FOR DRUG ABUSE

PREVENTION

THURSDAY, SEPTEMBER 9, 1971

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON PUBLIC HEALTH AND ENVIRONMENT, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D.C.

The subcommittee met at 10 a.m., pursuant to notice in room 2123, Rayburn House Office Building, Hon. Paul G. Rogers (chairman), presiding.

Mr. ROGERS. The subcommittee will come to order, please.

This morning, the Subcommittee on Public Health and Environment is continuing hearings on various legislative proposals to combat the mounting drug abuse problem experienced in this country. Shortly before the August recess, this committee proposed that the various pharmaceutical manufacturing firms in this country pool their research efforts to devise a blocking agent or another kind of agent, to combat heroin.

We were gratified by the response of the representatives of the Pharmaceutical Manufacturers Association as well as the president of one of the drug companies, Smith Kline & French, who indicated that our Nation's pharmaceutical industry would cooperate in this effort. This morning our committee is pleased to receive the testimony of the association and the president's and chief executive officer's representatives of some 26 of our major pharmaceutical companies. It is my understanding that these member firms produce about 95 percent of the Nation's prescription medicines and have at their command some 20,000 scientists.

Shortly after receiving the first assurances of cooperation of the Pharmaceutical Manufacturers Association, this committee contacted the Attorney General, representatives of the Federal Trade Commission and Dr. Jerome Jaffe who is the President's Special Consultant for Narcotics and Drug Abuse. All gave assurances to this committee that they would cooperate fully in trying to work out whatever problems might be involved of an antitrust nature, or any other legal problems that might be involved in trying to bring about a total industry-Government effort to assist in the development of this blocking

agent.

This morning we are pleased to have this excellent representation of the pharmaceutical industry. I think the American people should be greatly impressed with the cooperative attitude that is so vividly expressed here by the presence of so many chief executive officers and the distinguished president of the association and other officers of the association.

66-841-72-pt. 3—10

Our first witness this morning will be the chairman of the board of directors of the Pharmaceutical Manufacturers Association, Mr. Henry W. Gadsden. He is also chairman of the board of Merck and Co., Inc. He has with him Mr. C. Joseph Stetler, president of the Pharmaceutical Manufacturers Association, and Mr. Chester J. Cavallito, executive vice president of Ayerst Laboratories. Of course, I understand you will introduce the other representatives.

We are pleased to welcome you to the committee, and commend the industry for this cooperative effort.

STATEMENT OF HENRY W. GADSDEN, CHAIRMAN, BOARD OF DIRECTORS, PHARMACEUTICAL MANUFACTURERS ASSOCIATION; ACCOMPANIED BY C. JOSEPH STETLER, PRESIDENT, PHARMACEUTICAL MANUFACTURERS ASSOCIATION; AND DR. CHESTER J. CAVALLITO, EXECUTIVE VICE PRESIDENT, AYERST LABORATORIES; AND INDUSTRY OFFICERS AND REPRESENTATIVES

Mr. GADSDEN. Thank you, sir.

Today, I am speaking primarily in my capacity as chairman of the board of PMA. As you know, PMA represents 120 pharmaceutical firms whose research and production capabilities account for most of the medicines that have been developed and provided around the world in the past 30 years.

Our purpose today is to affirm our support of an activity that is clearly in the national interset, and also to report on the steps we have taken in the last 4 weeks to begin converting that support into meaningful action. A national effort is required, on a scale commensurate with the need, if the problem of narcotic addiction in our society is to be brought under control. Within such a context, we believe the actions we propose to take or have already initiated will enable the prescription drug industry to make a valuable contribution to solving the problem.

With me today, as you have mentioned, are Mr. C. Joseph Stetler, president of the PMA, who appeared before your committee on August 5, and Dr. Chester J. Cavalitto, executive vice president of Ayerst Laboratories and cochairman of a newly appointed PMA Scientific Task Force. Also present are senior executives from 26 PMA member firms. We are here, Mr. Chairman, out of a desire to demonstrate our genuine commitment to try to make useful contributions to an accelerated program of industry research in narcotic addiction.

This level of attendance at a congressional hearing by key officials is quite unprecedented in our industry.

If I may, Mr. Chairman, I shall now introduce the pharmaceutical executives present. I shall ask each of them to stand as I give his name, position, and company affiliation.

LIST OF 26 SENIOR EXECUTIVES OF PMA MEMBER FIRMS PRESENT AT HEARING

Mr. Charles R. Adams, vice president and general manager, Riker Laboratories.

Mr. ROGERS. Mr. Adams, the committee welcomes you.