Pharmaceutical Research and Manufacturers of America Fnd Inc.

“The head of the regulatory and scientific advocacy department of the pharmaceutical research and manufacturers of america (phrma), a section 501(c)(6) trade association that has a historic and continuing relationship with the foundation, is an ex-officio member of the foundation's board of directors. (up until 2015, the president of phrma was the ex-officio member.) foundation directors must be research and development executives of companies that are members of phrma, but are elected by the foundation board itself.”

“The foundation form 990 is prepared by tate & tryon, cpas, and reviewed internally by key financial mangement and the foundation's president. A copy of the 990 is provided to the board of directors to review prior to filing.”

“All directors, officers and key employees of the foundation must report potential and actual conflicts as they arise. In addition, they are required to sign an annual conflict of interest disclosure statement. When a potential conflict of interest is disclosed to, or otherwise comes to the attention of, the president, the chair of the board or a non-affected director, he or she shall consider all the relevant circumstances and shall determine whether the arrangement is potentially harmful to the best interests of the foundation. If the arrangement is found not to be harmful, then the arrangement may be authorized or approved; otherwise, the director, officer or key employee who is involved or expects to be involved in the arrangement shall be notified that the arrangement is not authorized or approved and, if already in existence, should be terminated. The president shall authorize or approve an arrangement only after consulting with the chair of the board. The chair of the board shall authorize or approve an arrangement only upon a vote of a majority of uninvolved directors.”

“Merit raises and bonuses are determined in accordance with phrma policy based on staff evaluations, and recommendations are forwarded to the president for review. Overall performance of the president of the foundation, including merit raises and bonuses, is also determined in accordance with phrma policy based on staff evaluations by the ex-officio member of the foundation board. This evaluation will be forwarded as a recommendation to the chairman and vice chair of the foundation board for final approval of the president's performance, including compensation/ bonus.”

“The foundation does not make its governing documents or financial statements available to the public.”

“A new program was added in 2017 to support value assessment. The new value assessment initiative is a three-part award program aimed at advancing the ongoing shift toward a value-driven health care system through better evidence and value frameworks. Despite the emergence of numerous efforts to advance value-driven health care in recent years, the need to develop solutions that reflect patient preferences and real-world clinical practice persists. In addition, many methodological issues remain unsolved. Recognizing these concerns, the phrma foundation aims to encourage the development of innovative, multi-stakeholder-based solutions to current challenges in assessing and measuring value through the value assessment initiative.”

“The audit oversight process has not changed from the prior year.”