The pharmaceutical industry’s powerfulWashington trade association fell in size by almost two dozencompanies after revising membership rules amid the debate overU.S. drug prices.

Pharmaceutical Research and Manufacturers of America, or PhRMA,will require that members spend at least $200 million a year onresearch and development and that their R&D spending is atleast 10 percent of global sales.

The changes, reported by Bloomberg Sunday, follow a three-monthreview that has already seen several member companies leave thelobbying group.

“Being a member of PhRMA means being committed to doing thetime-intensive, scientifically sound research it takes to bringbold new advances in treatments and cures to patients,” saidJoaquin Duato, chairman of PhRMA and Johnson &Johnson’s worldwide chairman for pharmaceuticals, in a statementannouncing the changes.

Drugmakers of all sizes use price increases toraise revenue. The changes will result in a trade group made up ofmostly large, established drugmakers, such as Pfizer Inc.,GlaxoSmithKline Plc and AstraZeneca Plc.

Some smaller companies that have attracted the ire of insurers,patients and politicians for buying older drugs and raising theirprices will be shut out. Companies that don’t yet have drugs on themarket will also be less likely to remain with the group.

Eli Lilly & Co. supports the membership criteria, which will“allow the association to focus even more effectively on the issuesthat are important to research-based biopharmaceutical companies,”Mark Taylor, a spokesman, said in an email.

The drug industry is one of Washington’s most powerful. In 2016,PhRMA spent nearly $20 million on lobbying, according to the Centerfor Responsive Politics. PhRMA is in the midst of a mediaadvertising campaign and public events effort to highlight thevalue of members’ treatments.

Pricing outcry

Companies are embroiled in a national debate over U.S. drug pricing. Industry critics range frompatients to President Donald Trump, who’s accused drugmakersof “ getting away with murder.” His administration has said hewants to use the government’s negotiating power to lower drugprices, but he hasn’t provided details.

PhRMA’s website now lists about three dozen member companies.All those affected by the changes are eligible to reapply formembership, according to the trade group. Some companies that fallshort of eligibility now had recently resigned from the group.

Seven companies with full memberships were eliminated. JazzPharmaceuticals Plc resigned Monday, after being a member for ninemonths, a spokeswoman said.

Horizon Pharma Plc said in a statement that it’s “proud of itscommitment to find and develop treatments for patients with rarediseases. For the past six years, Horizon has enjoyed acollaborative and productive relationship with PhRMA and its membercompanies and is confident that this will continue as the companyjointly supports and is active in shaping many critical policiesthat impact the overall industry.”

Representatives for Orexigen Therapeutics Inc., LeadiantBiosciences and Medicines Co. did not respond to requests forcomment. AMAG Pharmaceuticals Inc. said that it exceeds the annual10 percent threshold for R&D spending in PhRMA’s new membershiprules, but is too small to spend the minimum of $200 million a yearon research. Mallinckrodt Plc resigned in March

The changes also eliminated 15 “research associate” members,typically smaller companies that paid smaller fees. AeriePharmaceuticals Inc. declined to comment.

A spokeswoman for BioMarin Pharmaceutical Inc. said Tuesday thatthe company supports PhRMA’s efforts, and is “exploring with PhRMAwhat options we have for membership.” Marathon PharmaceuticalsLLC, a former research associate, left the group last month.

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