Welcome to the Week in Review.
1. Court Deals Major Blow to AstraZeneca
- Yesterday, a federal judge in Delaware delivered a significant blow to AstraZeneca by ruling against the company in its effort to halt the negotiation of its diabetes drug, Farxiga, marking a pivotal moment in the ongoing battle to defend Medicare negotiations. Patients For Affordable Drugs’s Merith Basey hailed this ruling as a critical step forward in ensuring fair drug prices. “On behalf of patients across this country we are encouraged but not surprised that the court has rejected AstraZeneca’s self-serving arguments and essentially said the company didn’t have a leg to stand on,” she said. “This ruling sends a clear message that Big Pharma’s greed cannot continue to be prioritized over patients’ well-being and underscores the importance of Medicare negotiation to begin to rein in exorbitant drug prices.” Last year, AstraZeneca generated over $4 billion in revenue from Farxiga, a medication used to treat patients with type 2 diabetes, heart failure, as well as chronic kidney disease. CMS data shows that nearly 800,000 patients on Medicare Part D utilized Farxiga between May and June 2022. Patients like Karen in Colorado, who lives on a fixed income and faces a $600 bill for a three-month supply of Farxiga, will benefit from a lower negotiated price scheduled to take effect in 2026. This case was one of nine threatening Medicare negotiation and once again a judge has ruled against the drug industry and for the United States. This Thursday, March 7th, four lawsuits filed by Bristol Myers Squibb (BMS), Novo Nordisk, Novartis, and Johnson & Johnson (J&J) will present combined oral arguments to a federal judge in New Jersey. P4AD is unwavering in our commitment to fight the pharmaceutical industry’s attempts to use the U.S. legal system to undermine policies aimed at reducing drug costs and ensuring patients can access the medications they need at prices they can afford. – (Endpoints News, P4AD, BioSpace, CMS)
2. Legislators Oppose Efforts To Undermine The Inflation Reduction Act
- On Thursday, the House Energy and Commerce Subcommittee on Health held a hearing on legislative proposals related to patients living with rare diseases. Several bills that were the focus of the hearing would, if implemented, undermine the drug provisions in the Inflation Reduction Act. P4ADNow’s founder, David Mitchell sent a comprehensive 21-page statement to the subcommittee ahead of the hearing debunking Big Pharma’s claims including that the Inflation Reduction Act would inhibit investment in small-molecule drug development and drugs that treat rare diseases. David, who is a patient with a rare, incurable cancer, underscored how the law actually provides key incentives for drug investment and strikes the right balance between affordability and access. During the hearing, several subcommittee members echoed David’s sentiments, expressing opposition to bills that would curtail Medicare’s negotiating authority. Rep. John Sarbanes summarized the hypocrisy of drug companies who often cry wolf about investment in research and development, citing David’s statement which revealed that “Johnson & Johnson reported an 11.8 percent increase in R&D spending in 2022, Merck reported an 11 percent increase in R&D spending, and Moderna reported a 65 percent increase in R&D spending and projected further increases in 2023.” Despite claims that the new drug price law would stifle innovation, real-world evidence suggests otherwise: Big Pharma’s primary goal is to safeguard profits from its blockbuster drugs. The opposition from other committee members including Rep. Frank Pallone, the Ranking Member of the full committee, underscores the strong opposition from many Members to undermine the Inflation Reduction Act. — (YouTube, P4ADNow, Politico, PORTAL Research)
3. The High Cost Of Insulin
A new study published in Diabetes Research and Clinical Practice highlights the escalating financial burden faced by people managing diabetes. Researchers found that from 2009 to 2018, total costs associated with diabetes care increased, with people living with type 1 diabetes experiencing the most substantial rise in out-of-pocket expenses. “Studies show that the more a patient pays out-of-pocket, the less likely they are to stick with their medication long term, which poses a serious risk to their health,” said lead author Evan Reynolds. Fortunately, the $35 monthly insulin copay cap for patients on Medicare in the Inflation Reduction Act has brought significant savings for patients. But, there’s more to be done to ensure everyone can access their insulin at prices they can afford. — (University of Michigan, KFF)
BONUS: A new report from Protect Our Care found that in 2023, 16 of the largest drug companies reported a whopping $684 billion in earnings — ”a figure that is higher than the gross domestic product (GDP) of 88 percent of the countries in the world.” Remind us again how drug companies are hurting from the new drug pricing reforms?