Welcome to the Week in Review.
President Trump Announces Drug Reform Framework
Yesterday, the White House released a new healthcare framework – as Americans face the final days of ACA open enrollment and rising health care costs – that raised more questions than it answered. While the president called on Congress to codify most-favored-nation (MFN) pricing, a notable signal that durable drug price reforms do in fact require statutory authority if they are to have any long-term impact for patients, the framework offers little clarity on how MFN would be implemented, applied, or enforced. Significant questions also remain about the administration’s proposals on PBMs, over-the-counter access, and other drug pricing policies. Many of the ideas outlined would require congressional action to take effect, shifting the focus to lawmakers to determine whether and how these concepts become law. As this debate moves forward, we look forward to working with lawmakers to ensure any legislation delivers lasting savings for patients. — [White House]
New Year, New Price Hikes
Here’s what we know so far about pharma’s January price grab. With some early reporting suggesting that the total number of hikes may reach as many as 900, P4AD has analyzed at least 417 drug price increases, with an average hike of $297.29, or 5.03% per month. Exorbitantly priced cancer drugs like Breyanzi and Abecma experienced the largest hikes up an eyewatering $26,567.52 and $15,849.37, respectively. Notably, 83.7% of the increases exceeded inflation, a higher share than we observed at this point last year. Cancer drugs feature prominently in this round of hikes: the pediatric cancer drug Unituxin was hiked 9.9% per vial, and Trisenox, used to treat acute promyelocytic leukemia, was hiked 9.4% per vial. For patients and families facing life-or-death treatment decisions, these increases aren’t abstract – they reflect an industry that continues to raise prices simply because it can, with little restraint and no regard for patients’ ability to pay. — [NPR]
J.P. Morgan Healthcare Conference Takeaways
GLP-1 drugs dominated the JPMorgan Healthcare Conference, highlighting how central they’ve become to pharma’s growth strategy. Pfizer CEO Albert Bourla said that the company is “all in on obesity,” while Eli Lilly CEO David Ricks pointed to direct-to-consumer (DTC) programs as a key part of the industry’s future. Despite generating tens of billions in revenue while costing a few dollars to manufacture, GLP-1s remain dramatically overpriced in the U.S., with drugs like Ozempic priced up to 16 times higher than in other wealthy countries. While voluntary deals with the White House and DTC programs may offer limited relief for some patients, price cuts will reach a record number of people next January, when several GLP-1s are scheduled to see 71% reductions through Medicare negotiation. Elsewhere at the conference, Regeneron’s chief scientist declined to commit to a price for the company’s new hereditary deafness drug and brushed off their continued refusal to publicly come to the table on most-favored-nation. Along with AbbVie, Regeneron remains one of only two companies from President Trump’s 17 letters last summer that have yet to make a deal, though the company is reportedly currently in talks with the administration. — [CNBC, BioPharma Dive, Morning Brew, STAT News, Bloomberg]
ICYMI: On Monday, the New York Times published an obituary honoring David Mitchell, P4AD’s founder, who passed away two weeks ago today after a 15-year battle with multiple myeloma, a rare blood cancer. The obituary reflects on David’s pivotal role in reshaping the national conversation on drug pricing. You can also read additional coverage and a non-exhaustive list of tributes from friends and allies, highlighting the lasting impact of his leadership and advocacy.
New York Times: David Mitchell, Who Led Fight on Drug Prices, Dies at 75
[STAT News, Detroit News, POLITICO, Real Talk MS Podcast, The Cancer Letter][AARP, Protect Our Care, CxRSP, Families USA, Public Citizen, T1 International, Friends of Cancer Research, Initiative for Medicines, Access & Knowledge, John Arnold]
Patient Advocate Spotlight: Sheldon Armus
Condition: Blood clots
Drugs: Xarelto ($197 as of January 1st, over $500 before)
Background: Former high school science teacher and former pharmaceutical sales representative from Boynton Beach, FLIn His Words: “In 2014, one month into retirement, I underwent a quadruple cardiac bypass operation — a surgery that saved my life. However, the surgery, as well as my diabetes and cardiac conditions, left me taking seven drugs each day. All of these drugs keep me alive, and I’m very thankful for their existence. However, they are also a real financial burden. But last year, I reached my out-of-pocket cap in August, and all my prescriptions were free for the rest of the year. These reforms work!”
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