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DRAFT ~ BIOLOGICAL/CONSUMER PREFERENCE RESEARCH CONDUCTED BY PHILIP MORRIS SINCE 1950 THE NUMBER OF PUBLICATIONS ON SMOKING-HEALTH ISSUES HAS ESCALATED EXPONENTIALLY. THE DOMESTIC TOBACCO COMPANIES RESPONDED BY ESTABLISHING THE COUNCIL FOR TOBACCO RESEARCH - U.S.A., INC. IN 1954 TO FUND INDEPENDENT SCIENTIFIC RESEARCH AIMED AT INVESTIGATING THE CLAIMED RELATIONSHIP BETWEEN SMOKING AND HUMAN DISEASE. IN ADDITIIIN, EACH DOMESTIC TOBACCO COMPANY RESPONDED DIFFERENTLY TO THESE ISSUES. SINCE PM IS OUR MAJOR COMPETITOR, EXAMINATION OF ITS RESPONSE, COMPARISON OF PM AND RJR ACTIVITIES, AND BENEFITS DERIVED OR TO BE DERIVED FROM ACTIVE PARTICIPATION ARE IN ORDER. HOW HAS PM, OVER THE YEARS, HANDLED SMOKING RESEARCH AND DEVELOPMENT ISSUES? SEE SLIDE 1: ~ PREPARED BY A. RODGMAN AND F. G. COLBY, MARCH 1983 = cn - _ ~ - r

PM SMOKING RESEARCH AND DEVELOPMENT ACTIVITIES 0 STAFFING AND FACILITIES 0 BIOLOGICAL ACTIVITIES (EXCLUDING NICOTINE ANALOGS) o IN-HOUSE RESEARCH (RICHMOND, COLOGNE, NEUCHATEL) o FUNDED RESEARCH o SCIENTIFIC PR o "INTELLIGENCE" 0 BEHAVIORAL RESEARCH 0 NICOTINE ANALOGS 0 PRODUCT DEVELOPMENT

PM HAS BEEN VERY ACTIVE IN BIOLOGICAL RESEARCH. THIS RAISES THE QUESTION SHOWN ON SLIDE 2: THE COMMENT ON SLIDE-2 IS IMPORTANT: THAT PM'S INVOLVEMENT IS CONSIDERABLE IS OBVIOUS FROM PUBLICLY AVAILABLE INFORMATION. IT IS ONLY THE "TIP OF THE ICEBERG". EVIDENCE TO SUPPORT THIS IS DERIVED FROM PM'S PUBLISHED WORK IN THE SMOKING-BEHAVIOR AREA, WHICH CAN BE CONSIDERED AS A PART OF ITS BIOLOGICAL RESEARCH. DR. SCHORI IS A PH.D. PSYCHOLOGIST WHO WAS ON THE PM SMOKING-BEHAVIOR RESEARCH STAFF FROM 1970 TO 1975. HE PUBLISHED 6 ARTICLES BASED ON HIS RESEARCH AT PM. HOWEVER, AS SHOWN ON SLIDE 3, HE GENERATED 30 INTERNAL REPORTS DURING THOSE YEARS AT PM. THUS, HIS PUBLISHED WORK REPRESENTS ONLY .20% OF HIS ACTUAL RESEARCH PRODUCTION. THIS WOULD APPEAR TO BE FAIRLY TYPICAL; E.G., DR. SCHUMACHER HERE AT RJR HAD A TOTAL OF 26 PATENTS AND PUBLICATIONS, REPRESENTING ABOUT 31% OF HIS INTERNAL REPORT PRODUCTION; IN MY CASE, 19 PUBLICATIONS PLUS A PATENT REPRESENTED ABOUT 21% OF MY INTERNAL REPORT PRODUCTION. SLIDE 4 COMPARES ACTIVITIES AT PM AND RJR WITH REGARD TO OUR BEST ESTIMATE OF INITIATION DATE. PM HAS HAD IN-HOUSE ANIMAL FACILITIES OR ACCESS TO SUCH FACILITIES SINCE 1969, PERHAPS SINCE 1966; RJR HAD IN-HOUSE ANIMAL FACILITIES FOR ABOUT THREE YEARS, DISBANDING THEM IN 1970. PM HAS UTILIZED A BACTERIAL MUTAGEN TEST SINCE 1973 TO INVESTIGATE WHETHER CERTAIN COMPOUNDS PRODUCE CHANGES AT THE CELLULAR LEVEL. THIS WAS FAIRLY SOON AFTER THIS PROCEDURE WAS DISCOVERED. THE USE OF ANIMAL CELLS IN SIMILAR TESTS WAS STARTED IN 1975 BY PM.

SL i.DE z QUESTION: HOW DO PM ACTIVITIES IN THIS AREA COMPARE WITH THOSE OF RJR? COMMENT: THE AVAILABLE EVIDENCE INDICATES THAT PM HAS SUBSTANTIAL EFFORT ONGOING IN THE SMOKING RESEARCH AND DEVELOPMENT AREA; HOWEVER, WE SUSPECT THAT THE INFORMATION PUBLICLY AVAILABLE OR GAINED BY "INTELLIGENCE" TECHNIQUES REPRESENTS AT BEST ONLY THE "TIP OF THE ICEBERG".

THE "ICEBERG" EFFECT PUBLIC DOMAIN INTERNAL LITERATURE • REPORTS TOPICS PHILIP MORRIS SCHORI (1970-1975) G 30• BEHAVIORAL ASPECTS OF SMOKING R. J. REYNOLDS SCHUMACHER (1956-1982) kC) PUBLICATIONS 84 TOBACCO/SMOKE; FLAVORANTS PATENTS RODGMAN (1956-1973) 1S PUBLICATIONS k PATENT 91 SMOKE/TOBACCO; TOBACCO SUBSTITUTES; SMOKE COMPOSITION CONTROL;

Philip Morris vers`'u's R. J. Reynolds ? Animal Facilities Muta en Test ~Bacteria) Muta en Test ~Mammal) Beh~vioral Research Aerosol Research Radioisotope 175:;d Techniques Expanded Tobacco Tobacco Substitutes ? Microbiology/ Plant Physiology - .~. 0 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 YEAR RJR 1 PM I SL+i£ tP9[05

SLtDE' S' COMPARISON: PM vs RJR (US AND EUROPE) PAPERS PUBLISHED IN MEDICAL JOURNALS, 1966-1982 (EXCLUDES PATENTS AND CHEMICAL AND OTHER SMOKING-RELATED WORK PUBLISHED IN NON-MEDICAL JOURNALS) PHILIP MORRIS DATE JOURNAL ~ NEW RESEARCH (INCLUDING RESEARCH IN COOPERATION WITH OTHER ORGANIZATIONS) 1. 1966 2. 1968 3. 1964 4. 1964 5. 1971 6. 1971 7. 1972 8• 1975 9. 1976 10. 1977 11. 1977 12. 1977 13. 1980 14. 1980 15. 1980 16. 1981 17. 1981 18. 1981 19. 1982 AM• REV. RESPIRATORY Dis. Z. PRAEVENTIVMED- ARCH• ENVIRONMENTAL HLTH• CORESTA INFO. BULL + Ni. REV. RESPIRATORY Dis. J. MED• CHEM• TOXICOL• APPL• PHARMACOL• ARCH• ENVIRONMENTAL HLTH• UICC (INTL• UNION AGAINST CANCER) TECH• SERV. RPT• AGENTS ACTION MED. TECH• (GERM) PREVENT• MED- EXP• LUNG RES- J• MED• CHEM• ONCOLOGY BULL•.PSYCHONOMIC SOC• IMMUNOBIOLOGY I MA UNOB I OLCGY PSYCHOPHARMACOL• CRITIQUES OF OTHERS' RESEARCH 1• 1969 2. 1970 3. 1972 4. 1972 5. 1978 6. 1978 7. 1980 * J. AM• MED. Assoc- J• AM• MED. Assoc. AM• J. CLIN• NUTR• LANCET MED• J. AUSTRALIA NEW ENG• J. MED- NEW ENG• J. MED• NEW ORIGINAL PREVIOUSLY UNPUBLISHED DATA OR INDEPENDENT ANALYSES OF PREVIOUS DATA• CRITIQUES PUBLISHED IN NON-MEDICAL JOURNALS NOT INCLUDED• +TOBACCO INDUSTRY JOURNAL INCLUDED BECAUSE OF REFERENCE TO ORAL PRESENTATION OF AN UNPUBLISHED PAPER ON AN ANIMAL SMOKE INHALATION MACHINE- R• J. REYNOLDS DATE NONE JOURNAL NONE . . •e....r-

PM'S INVOLVEMENT IN BEHAVIORAL RESEARCH ON SMOKING DATES FROM AT LEAST 1961. THE REMAINING ITEMS IN SLIDE 4 DESCRIBE THE USE OF TECHNIQUES OR PROCESSES TO STUDY AND CONTROL PRODUCT YIELDS, PRODUCT PERCEPTION, OR TO MODIFY THE RAW MATERIALS• - ; SLIDE 5 LISTS CHRONOLOGICALLY THE JOURNALS WHICH PM STAFF HAS USED FOR PUBLICATION OF 19 RESEARCH PROJECTS. THE JOURNAL NAMES INDICATE THE NATURE OF THE RESEARCH. THE SiJBJECT MATTER OF SOME OF THESE PUBLICATIONS WILL BE DESCRIBED LATER • PM STAFF HAS ALSO CRITIQUED IN MEDICAL JOURNALS SMOKING RESEARCH PUBLISHED BY ANTI-TOBACCO PEOPLE. IN THE CASE OF ORIGINAL RESEARCH, IF THE "ICEBERG" EFFECT IS OPERATIVE, THE 19 ARTICLES LISTED PROBABLY INDICATE THE EXISTENCE OF 60 TO 100 INTERNAL RESEARCH REPORTS AT PM. STAFFING & FACILITIES SLIDE 6 SUMMARIZES THE STAFFING AND FACILITIES PM HAS FOR BIOLOGICAL RESEARCH. IN RICHMOND, PM'S R&D DEPARTMENT HAS ONE GROUP CALLED "BASIC RESEARCH AND EXTRAMURAL ACTIVITIES" UNDER DR. TOM OSDENE. IT NUMBERS 86, OF WHOM 80 ARE INVOLVED IN RESEARCH AND 6 IN COLLECTING/CRITIQUING SMOKING-HEALTH LITERATURE. OF THESE 80, ABOUT 12 ARE INVOLVED IN SMOKING-BEHAVIOR RESEARCH (6 AT RJR); ABOUT 30 ARE INVOLVED IN RADIOISOTOPE WORK (3 AT RJR) ON AIR DILUTION EFFECTS, FLAVOR TRANSFER AND DECOMPOSITION, FILTER EFFICIENCY. PM HAS ALSO ADVERTISED EEXPLICITY FOR PHARMACOLOGISTS, PHYSIOLOGISTS, PSYCHOLOGISTS, EXPERTS IN CARDIOVASCULAR AND RESPIRATORY SYSTEMS (SLIDE 7). PHARMACOLOGY AND PHYSIOLOGY OF SMOKE WERE LISTED AS PM RESEARCH ACTIVITIES IN THE 1965 EDITION OF A WELL-KNOWN CATALOG OF INDUSTRIAL R&D LABS TO WHICH EACH COMPANY SUBMITS THE INFORMATION IT WANTS PUBLISHED.

STAFFING AND FACILITIES 0 PM RESEARCH LABORATORY (RICHMOND, VA) BASIC RESEARCM AND EXTRAMURAL ACTIVITIES: DR. T• OSDENE, DIRECTOR STAFF TOTALS 86 80 INVOLVED IN BASIC RESEARCH 6 INVOLVED IN SMOKING-HEALTH LITERATURE ' CRITIQUE OF 80, 12 INVOLVED IN BEHAVIORAL RESEARCH ON SMOKING 30 INVOLVED 'IN RADIOISOTOPE RESEARCH EXPLICIT ADVERTISEMENTS FOR PHARMACOLOGISTS, PHYSIOLOGISTS, PSYCHOLOGISTS, EXPERTS IN CARDIOVASCULAR AND RESPIRATORY SYSTEMS. DESCRIPTION IN "INDUSTRIAL RESEARCH LABORATORIES" OF ACTIVITIES IN RICHMOND LABORATORY: PHARMACOLOGY, PHYSIOLOGICAL EFFECTS OF SMOKING. 0 INSTITUTE FOR INDUSTRIAL AND BIOLOGICAL RESEARCH (COLOGNE, W. GERMANY): PM DOES NOT APPEAR ESSENTIALLY 100% DEVOTED TO BIOLOGICAL RESEARCH REPORTS TO RICHMOND PERSONNEL VIA DR. FINK OF THE PM LAB IN NEUCHATEL STAFFING HAS INCREASED FROM 60 IN 1975 TO 95 IN 1980 TO 120 AT PRESENT. ACTIVITIES INCLUDE ANIMAL EXPERIMENTS, TOXICOLOGY, SCREENING TESTS, CONSULTATION. 0 COMPARISON OF PM AND RJR PM BASIC RESEARCH 80 SMOKING-HEALTH LITERATURE 6 BIOLOGICAL RESEARCH 120 206 RJR T BASIC RESEARCH 34 SMOKING-HEALTH LITERATURE 6 40

CUTCAL ErJG, MIS (1964) , PH[LLiP MORRIS RF.9EARCH OPENINGS. tttaQ pharmamkyriFt-Ph.D. rith knnR•lydrr.• nf orpnie abrtniptry. phy.iology. rlretrtmin. aud datiFticx. Exprrirnne in rarditn•aacular. ied- rnwrr pmfarpiw antl unrer .tudia.. SAo+ ab~r to orytanitr and rReeutr new h-.relt agnnu. Litrraturr .eirntist-Ph.D. w•ith at t tw•o prar. or r:pAienor with pharm.ce+nirnl or ehemiral manufacturinC oompany. I\turt be familiar with library .eienea, loteip InnRsutrA, iiteratute ararchins. and eraluatioa of rrwrreh tarvtrams $ot1 po.itionw an aiewh retaWi.hed •nd would pre appiioant freedom to ortani.. • hi. at:tivitp. 8afarJ outamensurstr xith abi'tty. Company paid bendlta. faduding prodt ahatini. Pred tieumE to: Administrati.e Midntant, P.O. 1lo: i-D, Riah- tootrS. Virginia fil06. I(mUSTRIAL RESEM LABORATORIES (1965) 01IF&_ Ph1ip Mtxrirr Ine.r 100 Park Ave., New. Ytxk, N. Y. . (C1) Pru+datt: Joseph F. Culimatt 111. • Loborotory: Philip MorrL Reiarc4t Cwter.. 9th St. and Bells Rd, Rkhmotxl,'Ya. ~a-},• Rcsca.clt o+t: Tobacco: raw materials, eocn- bustton products, trtianufacturing pr'ocesses. ana- flavor testing. packaging, smoke lytica_I_Method-s, ---- - - --- _ , filtraton, pharntacofogY, pttysi l uiogiul eneccs ot stttoka