Welcome to the Week in Review.

Court Watch: US v. Pharma

Combined oral arguments brought by Bristol Myers Squibb (BMS), AstraZeneca, and Janssen Pharmaceuticals were heard by the Third Court of Appeals in Philadelphia in their efforts to halt the Medicare Negotiation Program. The arguments were considered by a three-judge panel that raised issues with the drug companies’ claim that they were being forced to participate in negotiations and that the program violated their First Amendment rights. This hearing marks the first appellate-level challenge to Medicare negotiations. In September, Patients For Affordable Drugs submitted an amicus brief in the consolidated case which highlights how lower negotiated prices will deliver transformative savings to patients. First-hand testimonies from patients like Lynn, who is forced to rely on financial assistance for her Imbruvica, and Aly, who spends nearly half of his monthly income on prescription drugs, including Eliquis, illustrate the devastating impact of high drug prices and the potentially life-changing impact of lower negotiated prices. While eight cases brought by Big Pharma and its allies have been ruled against the companies, we can’t rest on our laurels. As drugmakers continue to appeal, experts anticipate that one of the cases filed in various district courts may make its way to the Supreme Court. We are steadfast in our commitment to defending this historic program against challenges both inside and outside of the courts. — (Reuters, P4AD, Politico, P4AD, STAT)

Big Pharma Reaps Big Earnings

As we enter the last stretch of 2024, the pharmaceutical industry’s earnings underscore its continued financial strength despite their fear-mongering about the Inflation Reduction Act. Novartis — one of the drug manufacturers suing to stop Medicare negotiation — reported a striking $3.2 billion in earnings during the last quarter, an 111 percent increase from the same quarter last year. Pfizer, whose CEO Albert Bourla once described Medicare negotiations as “negotiation with a gun to your head,” outperformed analyst expectations with $4.47 billion in quarterly earnings. BMS also surpassed projections, reporting $1.21 billion in third-quarter earnings — in large part due to increased sales of Eliquis, its blockbuster blood thinner which was selected for the inaugural round of Medicare negotiation. While these companies relentlessly criticize the Inflation Reduction Act’s historic drug price reforms, their strong earnings reveal a thriving industry capable of succeeding under policies that better protect patients from sky-high drug costs. — (Accountable.US, Reuters, STAT, AP News, Washington Post, CNBC)

ICYMI

The Senate Judiciary Committee held a field hearing to examine the root causes of high drug prices and the financial burden on American seniors. During the hearing, lawmakers championed legislation that would reform our patent system and increase transparency into Pharmacy Benefit Managers (PBMs) – both critical levers to reining in spiraling drug costs. As we approach the lame-duck session, we are focused on advancing bipartisan bills to curb patent abuses and increase competition to lower prices for all patients. 

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