Welcome to the Week in Review.
1. Curbing Drug Price Hikes
- On Tuesday, the Department of Health & Human Services (HHS) announced a list of 41 drugs available through Medicare Part B will have a lower coinsurance rate from April 1 – June 30, 2024, should drug companies raise prices faster than the rate of inflation. This measure, established through the Inflation Reduction Act, aims to hold drug companies accountable for excessive drug price hikes by requiring them to pay rebates to Medicare. During this period, some of the 763,700 people on Medicare who take one or more of these 41 essential medicines could save between $1 and $3,575 per average dose. According to an analysis by AARP, retail prices for 943 commonly used drugs increased faster than the inflation rate every year from 2006 until 2020. Until the passage of the Inflation Reduction Act, drug companies had been able to raise prices at will year after year. This initiative cracks down on aggressive drug price gouging and stands to generate substantial savings for patients and taxpayers. — (HHS, Healthcare Finance News, Patients For Affordable Drugs Now, AARP)
2. Cracking Down On Inhaler Patents
- Despite announcements from major inhaler companies to cap out-of-pocket costs and reduce the list prices of some of their products, inhaler manufacturer, Teva, has yet to follow suit. This week, the Federal Trade Commission (FTC) filed an amicus brief in Teva’s lawsuit against a competitor, contending that Teva “improperly listed” patents on its asthma inhaler ProAir HFA. Teva used these patents to prevent Amneal Pharmaceuticals from obtaining approval for a generic version of Teva’s inhaler, therefore stalling an affordable alternative for patients. In November 2023, Teva and other drug companies were challenged by the FTC to remove improperly listed patents on their products. — (Reuters, VeryWell Health, Fierce Pharma, FTC)
3. Big Pharma’s Big Bag
- Even though big drug companies claim that the Inflation Reduction Act would dramatically impact pharma research and development, these corporations continue to allocate billions toward CEO compensation. It was recently revealed that CEOs from some of the largest pharmaceutical corporations have seen substantial pay increases in 2023 including Eli Lilly’s CEO David Ricks whose compensation rose 24 percent to $26.6 million and Johnson & Johnson’s CEO Joaquin Duato who has received a staggering $28.4 million. Additionally, the industry has also seen a surge in biotech acquisitions and record-high mergers, exemplified by Novo Nordisk and AbbVie announcing multimillion-dollar deals just this week. Despite patients already benefiting from the law’s drug price reforms, with further cost savings anticipated as other provisions phase-in, it’s evident that the pharmaceutical industry is prioritizing profit maximization over patients’ well-being, driven solely by greed and a relentless pursuit of maintaining exorbitant prices. — (Public Citizen, Fierce Pharma, The Wall Street Journal, Reuters, Pharmaceutical Technology, Patients For Affordable Drugs)
BONUS: According to a new study published in JAMA, blockbuster diabetes, heart disease, and weight loss drug, Ozempic, could be manufactured for less than $5 monthly, and still be profitable, despite carrying a monthly list price of nearly $1,000. We urgently need legislative action to rein in these exorbitant prices. Drugs don’t work if people can’t afford them.
Follow our social channels for an exciting announcement next week in our ongoing fight against Big Pharma and efforts to defend the hard-fought reforms already lowering drug prices!
Have a great weekend!