AstraZeneca is the latest in a slew of Big Pharma companies to pull out of the Pharmaceutical Research and Manufacturers of America (PhRMA), the drug industry’s lobbying organization.

An AstraZeneca spokesperson told POLITICO, which first reported the news, that the decision came after evaluating whether the company’s memberships with industry trade associations would align with its “purpose to accelerate the delivery of life-changing medicines that create enduring value for patients and society.”

“Given the significant investment, we want to ensure it is the most productive and effective use of our resources,” the spokesperson added. “Based on a recent assessment, we have made the decision not to continue our membership with PhRMA.”

The AstraZeneca spokesperson also emphasized that the company would be redirecting its investment in U.S. advocacy efforts and that its “longstanding commitment” to engaging with state and federal policymakers has not changed, “we’re just changing how we do it.”

PhRMA also confirmed AstraZeneca would be leaving the trade group, telling STAT News that it plans to continue “pushing reforms that protect innovation and make healthcare more accessible and affordable for all Americans.”

The British pharma giant’s departure marks the latest high-profile exit from PhRMA. In February, Teva Pharmaceuticals left the organization, while AbbVie stepped away in December.

Member dues make up a large portion of PhRMA’s $609 million in revenue per year, according to POLITICO.

In the past year, pressure on PhRMA and the industry in general has heated up with the passage of the Inflation Reduction Act. The drug pricing reform’s passage into law faced the industry with key existential crises, especially since Medicare now has the power to negotiate prices on a specific set of drugs.

Despite the legislative defeat, PhRMA has not slowed down its lobbying efforts as aspects of that bill start to fall into place. The organization noted in a statement that it believes that the Medicare Drug Price Negotiation Program will have “significant consequences that will harm patients and continued biopharmaceutical innovation.”

PhRMA added that it is “exceedingly disappointed” that the Centers for Medicare & Medicaid Services (CMS) did not take steps to “mitigate the law’s negative consequences.”

The Department of Health and Human Services recently announced an initial timeline for the implementation of the drug pricing provisions in the Inflation Reduction Act. 

Starting on September 1, CMS will publish the first 10 drugs on Medicare Part D that will be a part of the Medicare Drug Price Negotiation Program in 2026. The negotiated prices will go into effect on January 1, 2026.

The bill also allows CMS to select up to 15 more Part D drugs to begin negotiations for 2027, as well as 15 Part B or Part D drugs for 2028. For every year following, CMS will be able to choose 20 Part B or Part D drugs to become a part of the Medicare Drug Price Negotiation Program.