Produced by the American Life League (ALL), the nation's largest grassroots Catholic pro-life organization, the July 6 report uncovers a connection between Planned Parenthood and Afaxys, a for-profit marketer of contraceptives.
In a statement to Church Militant, Judie Brown, ALL president and co-founder, commented, "Planned Parenthood has created its own for-profit company to market dangerous birth control chemicals that can kill the preborn and maim women."
ALL executive director Jim Sedlak also confirmed with Church Militant that Afaxys maintains "major connections" to Planned Parenthood and its affiliates.
Founded in 2008 by former Planned Parenthood executives, Afaxys manages supply needs for public health providers, including family planning clinics, university health clinics, community health centers and city, county and state facilities.
Afaxys co-founder and CEO Ronda Dean is a former vice president of Planned Parenthood Federation of America. The firm's board of directors includes current CEOs of three Planned Parenthood affiliates. Former Planned Parenthood executives also occupy managerial positions inside the company and its parent, 416 Holdings, Inc.
ALL reports that in an internal company document, Planned Parenthood of Western Pennsylvania even branded Afaxys a "Planned Parenthood affiliated company." It also found that Afaxys has received start-up capital from certain Planned Parenthood affiliates, and that these were granted Afaxys stock in return.
Describing the revelations as "troublesome," Sedlak said, "The incestuous relationship between these organizations causes concern over taxpayer-funded 340B programs."
Under the 340B Drug Pricing Program, certain health care providers obtain discounts on prescription drugs from pharmaceutical manufacturers. The manufacturers are required to offer 340B discounts to health care providers for their drugs to be included under Medicaid coverage.
The Planned Parenthood-Afaxys connection, Sedlak notes, is of particular concern because, "as Congress appears to vote on taking direct taxpayer funding from Planned Parenthood, it has established this new relationship to keep taxpayer funding flowing through indirect channels."
Among Afaxys customers, ALL notes that "the common denominator ... is access to taxpayer money." This, it maintains, warrants a deeper congressional investigation.
"Members of Congress should care because this is not an effort for Planned Parenthood to enter the free-market business of contraceptive sales," ALL declares, "but a concerted effort to make more money from the American taxpayer. The only customers to be served by Planned Parenthood are public health providers."
Afaxys profits from the sale of its own contraceptives, and lands agreements with other pharmaceutical companies to contract with public health facilities. It is motivated by profit.
"We are not surprised with this new information," Brown told Church Militant. "After all, for Planned Parenthood it is clear that money is the only thing they care about, surely not the health and welfare of expectant mothers and their children, born and preborn."
ALL submitted its preliminary findings to Congress Monday, and is calling for an official inquiry into the Planned Parenthood-Afaxys relationship.
"As Congress moves to shut off all direct funding of Planned Parenthood for the next year, we urge members of Congress to launch a full investigation of Afaxys and all Planned Parenthood’s ‘affiliated companies’ and end its indirect access to taxpayer funds," ALL's statement read.