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Roche’s victory in buying Genentech is turning into a loss of a long-time member for PhRMA, the big trade group for drug companies in the U.S. The Swiss drug maker says it’s dropping its membership in PhRMA as of today and will focus on working with a more specialized lobbying outfit, the Biotech Industry Organization.

We wanted to see what Billy Tauzin, president and CEO of PhRMA, made of Roche’s departure after 36 years as a PhRMA member. Here’s how he explained it when we got him on the phone:

“Roche is a lot bigger than Genentech internationally, but Genentech is a lot bigger than Roche domestically,” he said. “In the reorganization, Roche assets were put into Genentech domestically, so there is no more Roche in America. That automatically made them members of BIO, not PhRMA.”

Among the ways PhRMA will feel the loss of Roche is through a dip in its revenues. Membership fees are based on a company’s annual sales, and Roche is a big contributor. In 2008, sales in Roche’s pharmaceuticals division grew about twice as fast as the global market.

“As part of the world’s largest biotechnology company, Genentech and Roche believe that BIO’s purpose is closely aligned with the direction of the new company and, therefore, can represent the company’s interests in Washington, among policymakers, legislators and the general public,” Roche said in a statement.

Tauzin says Roche might reconsider the decision. “We talked to Roche over the last couple of months, and next year they’re going to consider the possibility of joining through Genentech again,” he said.

Bonus: Roche also withdrew from the Association of the British Pharmaceutical Industry this spring.

Photo: Associated Press

Read more from the original source: 
After Genetech Deal, Roche Says ‘So Long, PhRMA; Hello, BIO’