Castellani Might Help Mend PhRMA's Fences With GOP

Featured in: The National Journal Written by: Meghan McCarthy Date: July 14, 2010 The decision by the powerful Pharmaceutical Research and Manufacturers of America to hire John Castellani, the respected head of the Business Roundtable, might help the organization win back Republicans angry with the group after they worked with Democrats on the healthcare overhaul, while retaining the moderate approach needed to work with whichever party is in power. "There are not more than a handful of people who could succeed in this job, and given his credentials and respect around town, John is one of those people," said Terry Holt of HDMK, a Republican communications firm. Since 2001, Castellani has led the Washington association of CEOs, and is known by D.C. insiders as a moderate who leans Republican but can work successfully on both sides of the aisle. Ivan Seidenberg, chairman of Business Roundtable, said Castellani helped make the organization a "real force inside the Beltway," in a statement announcing his departure. Republican operatives believe Castellani's role with PhRMA could mend some fences with conservatives, but cautioned that it would not completely repair the industry group's relationship with the party. Former Rep. Billy Tauzin, R-La., announced in February he was leaving the organization. He took criticism for striking a deal with the administration over the healthcare overhaul. "I think it helps because he's a fresh face; he's an honest broker, and he's got an exceptional and gifted hand," said a Republican healthcare analyst, "but it doesn't appear he'll change how the industry approaches reform." Another Republican lobbyist agreed. "It isn't going to wave a magic wand with Republicans, but John is an extremely capable way to start," said the lobbyist, "[Castellani] managed to navigate to the middle and accommodate the Obama administration more artfully than Billy Tauzin did." Ipsita Smolinski, a senior health policy analyst at consulting firm Capitol Street, said PhRMA's decision to hire Castellani largely came from Pfizer CEO and Chairman Jeff Kindler, who also serves as PhRMA's chairman and contributed to President Obama's campaign in the 2008 general election. Pfizer is also a member of the Business Roundtable. "Everyone was asking 'why?' after Billy Tauzin stepped down, especially after he got the best deal in history with healthcare reform," said Smolinski, referring to the $80 billion deal PhRMA cut with the White House to help fund reform, in exchange for protection from potential provisions the industry opposed. "But there was the impression that he didn't roll up his sleeves and get down and dirty with complicated issues like pricing, which is one of many issues for industry," said Smolinski. Although Castellani has not explicitly worked in the pharmaceutical industry, Smolinski said his business acumen would be a benefit to PhRMA.