Welcome to the Week in Review.
100% Tariffs Are Back
President Trump unveiled 100% tariffs on patented medications and their active ingredients in a move that could raise costs for patients. While these tariffs aim to pressure pharmaceutical corporations into U.S. manufacturing and Most Favored Nation agreements, the current MFN deals remain opaque and voluntary, and have not delivered meaningful savings for the vast majority of Americans. Under the policy, tariffs are set to take effect July 31, 2026, with companies able to avoid or reduce them by entering into agreements that include MFN pricing and commitments to onshore manufacturing in the United States. Companies that agree to both may receive full tariff exemptions through January 20, 2029, while those that only commit to onshoring would face a 20% tariff. With a majority of Americans already worried about the cost of their prescriptions, there is a significant risk that new tariffs will increase costs in the near term — costs that are unlikely to be absorbed by pharmaceutical companies and instead passed on to patients and taxpayers. — [AP, NYT, POLITICO, USA Today, STAT News, Axios, ABC News]
Analysis: Big Pharma Hikes Cancer Drugs Prices, While Lobbying Against Price Reforms
New analysis from P4AD finds that despite cancer drugs already costing, on average, $74,000 more per year than other drugs, pharmaceutical corporations raised prices on 64 oncology drugs in the first week of January alone, with more than 73% of the increases exceeding the rate of inflation. The price hikes affected treatments such as Brukinsa (which is now $16,673/dose), Qinlock ($46,620/dose), and Xpovio ($34,722/dose). Simultaneously, many of the same drug companies are lobbying Congress to pass the EPIC Act, which would delay Medicare price negotiation eligibility for small-molecule cancer drugs by four additional years. The delay would postpone negotiations for high-cost cancer drugs, prolonging already steep costs for patients This is P4AD’s third analysis in a series examining how pharmaceutical companies are hiking prices on lifesaving medications across disease areas while aggressively fighting reforms designed to lower them. — [P4AD, KDKA-AM]
Admin Admits Current MFN Deals Won’t Lower U.S. Prices
Medicare Director Chris Klomp recently admitted that the administration’s Most Favored Nation (MFN) approach is designed to raise drug prices in other wealthy nations, not directly lower prices for U.S. patients — a key detail as the White House pushes Congress to codify MFN pricing. While the president has framed MFN as a tool to reduce costs, the current voluntary deals with drugmakers, including AstraZeneca, Bristol Myers Squibb, Eli Lilly, and Merck, are time-limited, opaque, and fall short of systemic reform. All the while, Pharma is signaling resistance. Some corporations are reported to be delaying the launches of new medications in Europe to avoid triggering international price comparisons, and industry leaders have made clear they supported voluntary deals in part to stave off legislation. The result is a policy approach that may increase drug prices globally without savings for U.S. patients — putting affordability at risk for patients both in the U.S. and abroad. — [STAT News, P4AD, Reuters, Washington Post, Reuters]
Need for Generic Competition Tops Americans’ Desired Drug ReformsPolicies that make it easier to bring generic drugs to market are among the most popular tools to lower drug costs, with 88% of Americans supporting them, according to KFF. That’s higher than the support for allowing drug importation from Canada (78%), expanding the $35 insulin cap beyond Medicare (75%), or increasing taxes on drugmakers who refuse to negotiate prices (72%), all incredibly popular reforms. While the U.S. patent system was designed to reward innovation by granting limited exclusivity for novel inventions, the pharmaceutical industry continues to exploit it to extend monopolies and delay competition. These tactics keep drug prices high long after a drug’s initial development costs have been recouped. Patients understand what’s driving America’s high drug prices, and the data reflect it: there is overwhelming support for policies that increase competition and bring lower-cost alternatives to market. P4AD has long supported bipartisan legislation to do just that, including the ETHIC Act, which would curb patent thicketing as well as other reforms to eliminate product hopping and pay-for-delay deals. There is a clear appetite from Americans for Congress to urgently address pharmaceutical industry patent abuse in pursuit of lower prices. — [KFF, P4AD]
Patient Advocate Spotlight: Amelia Schachter
Background: Myelofibrosis, a rare blood cancer, and chronic migraines
Drugs: Botox ($1,500-$3,000/session) and Jakafi ($17,775.89/60 tablets)
Background: Retired oncology nurse and a cancer survivor from Firestone, Colorado
In Her Words: “My personal struggle began in 2020 when I was diagnosed with a rare blood cancer called myelofibrosis. I was prescribed a drug called Jakafi at a list price of $17,775 for 60 tablets. I no longer need to take Jakafi because I had a life-saving bone marrow transplant, but I also face the expense of periodic Botox injections to help relieve my chronic migraines, an essential treatment that can cost between $1500 and $3000 per session. Because I am forced to forego these injections due to unavailability and unaffordability, I endure more frequent and sometimes debilitating migraines.
As a healthcare professional and advocate who became a patient, I have witnessed the failures of a system that prioritizes profit over people. I am sharing my story and my voice to step up and ensure that all Coloradans, and all Americans, have guaranteed access to life-saving medications they need at prices they can afford.”
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