Welcome to the Week in Review.
As Tariffs Loom, Patients Could Pay the Price
President Trump confirmed this week that pharmaceutical tariffs remain on the table as part of a broader trade package. If imposed, tariffs of 25% or more on imported medicines and ingredients would disrupt the global supply chain, and patients would be left footing the bill. The U.S. already pays between 4-8 times what similar high-income nations pay for the same brand-name drugs. Adding tariffs would raise costs further, especially for generic medications, which account for 90% of all prescriptions in the US. New data from the Biotechnology Innovation Organization (BIO) suggests that proposed tariffs on the EU could jeopardize innovation and slow the development of new treatments for patients, as biotech companies could be left scrambling for new research and manufacturing partners. Some major drug companies have recently announced new U.S. manufacturing investments, likely in anticipation of future trade penalties. But reshoring takes years; in the meantime, patients would face higher prices and greater uncertainty. Pharma, meanwhile, could use the disruption to raise prices – exploiting chaos while continuing to fight efforts to lower costs and reform the patent system. Regardless of the policy intent, it’s patients who will bear the cost of pharmaceutical tariffs. – (Politico, Axios, Fierce Pharma, Global Trade Magazine, Desert Sun, BIO, Reuters, Forbes)
Judiciary Committee to Markup Pro-Competition Drug Pricing Bills
This Thursday, the Senate Judiciary Committee will mark up a slate of bipartisan, pro-competition bills aimed at curbing patent abuses and lowering prescription drug prices. The legislation targets tactics like patent thicketing, product hopping, and pay-for-delay deals that allow brand-name drug companies to extend monopolies and block generics and biosimilars. Previous versions of these bills – S.1040, S.1041, S.1096, S.1095, and S. 1097 – have been championed by patients in our community since July 2023. They have not only passed through Committee with bipartisan support but are projected to save taxpayers nearly $5 billion over the next decade. With one in three Americans struggling to fill their prescriptions due to cost, the Committee has a critical opportunity to advance reforms that promote competition and deliver relief to patients and taxpayers. — (Senate Judiciary Committee, PatientsPushForCompetition.org)
AFPI Outlines Drug Pricing Policies in Report
The America First Policy Institute (AFPI), a think tank founded by former Trump officials, released a new policy paper last week signaling that Trumpworld is serious about addressing the fact that Americans pay far more for prescription drugs than people in other countries. The paper revives ideas from Trump’s first term that were never implemented, and offers a more detailed roadmap than anything seen so far from the administration. While lowering prices for Americans is mentioned, the paper’s main focus is on preventing other countries from “freeloading” off U.S. investments in R&D. While we don’t share all of AFPI’s assumptions, the paper represents a notable shift and raises the prospect of potential drug pricing reforms under President Trump. (Axios, Endpoints)
ICYMI
The FTC’s lawsuit against the three largest PBMs is now in jeopardy after two commissioners were fired, raising legal questions about whether the case can proceed. We’re closely monitoring this development, which could undermine efforts to hold PBMs accountable for inflated insulin prices and restricted patient access.
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Welcome to the Week in Review.
Medicare Negotiation Moves Forward Despite Industry Attacks
The Centers for Medicare and Medicaid Service (CMS) has announced that all 12 manufacturers of the 15 drugs selected for the second round of the Medicare negotiation program have voluntarily agreed to participate. Overshadowing this key moment however is the fact that six of the drug manufacturers previously filed lawsuits between June 2023 and January 2025 to halt the program — which, if successful, would block significant price reductions for patients and billions in potential taxpayer savings. But these legal attacks aren’t the only threat to the popular program. Three bills have been re-introduced in Congress — The Orphan CURES Act, The EPIC Act, and the MINI Act — unnecessary giveaways to Big Pharma that would create new loopholes for drug companies to avoid negotiation for longer and for more drugs. These attacks, both in the courts and in Congress, make it clear that Big Pharma’s lobbyists and lawyers are doing everything they can to undermine the reforms patients fought hard to achieve. But there is also reason for some hope. At his confirmation hearing last week, likely CMS Administrator Dr. Mehmet Oz, pledged to “defend” and “use” the program when asked whether he would protect Medicare negotiation in court. With the law under attack from multiple fronts, P4AD remains committed to holding leaders accountable and ensuring the Medicare negotiation program is successfully implemented and able to deliver real relief to patients. — (CMS, P4AD, Fightpharma.org, P4ADNow, P4AD, P4ADNow, Drug Topics, Axios, P4AD)
PBMS Under Fire For Driving Up Drug Prices
Pharmacy benefit managers (PBMs) continue to face scrutiny for their role in driving up prescription drug prices. At the Managed Health Care Associate’s 2025 Business Summit this week, P4ADNow Executive Director Merith Basey exposed how PBM’s opaque and anti-competitive practices inflate drug prices. Highlighting findings from the Federal Trade Commission’s (FTC) report, Merith shared how PBMs manipulate formularies to favor high-cost brand-name drugs over lower-cost generics and biosimilars while pocketing massive rebates from manufacturers – with patients bearing the brunt of these practices. Bert in Pennsylvania, saw his PBM suddenly stop coverage of his Symbicort inhaler, forcing him to alternatives that caused severe side effects. In Michigan, Stacey’s PBM refused to cover her husband’s life-saving insulin, leaving them scrambling for options. With growing bipartisan momentum in Congress to address the shady practices of PBMs, there is an opportunity to drive overdue reforms that prioritize patients. P4ADNow supports efforts to end the PBM black box by increasing transparency, holding PBMs accountable for manipulating formularies to prioritize higher-cost drugs, and reining in vertical integration. — (P4ADNow, Federal Trade Commission, Commonwealth Fund)
DTC Ads Drive Up Costs For Taxpayers
The 10 largest drug companies in the U.S. spent a staggering $13.8 billion on direct-to-consumer (DTC) advertising in 2023 — and because this spending is tax-deductible, it effectively shifts the financial burden to taxpayers. A new analysis from the Campaign for Sustainable Rx Pricing (CSRxP) found that eliminating this tax break or banning DTC ads could raise federal revenues by up to $1.7 billion. DTC ad spending also directly contributes to higher drug prices. The analysis also highlighted that, according to the Congressional Budget Office, a 10% increase in DTC ads leads to a 2.3% rise in drug spending. The U.S. is one of only two countries in the world – alongside New Zealand – that allows DTC prescription drug ads, and Americans pay between four to eight times more for prescription drugs compared to people in other high-income nations. While some lawmakers are pushing for greater transparency in pharmaceutical advertising, more action is needed to address DTC ads and Big Pharma’s tactics that lead to higher drug prices. — (Tech Target, Campaign for Sustainable Rx Pricing, Politico, Congressional Budget Office, USC Schaffer, RAND)
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Key Bipartisan Drug Bills Introduced In Senate
Big Pharma has spent decades exploiting loopholes in the patent system to extend monopolies, block competition, and keep drug prices high. Senators Cornyn, Blumenthal, Grassley, and Durbin took a step to curb these abuses this week by reintroducing the Affordable Prescriptions for Patients Act (S.1041) – previously S.150 – a bipartisan bill to help crack down on “patent thicketing” by limiting the number of patents pharmaceutical companies can assert on biologic drugs. The bill is predicted to save taxpayers $1.8 billion over a decade. The same senators also introduced S.1040 to prohibit product-hopping – an anti-competitive strategy where a brand-name drug company switches patients to a “newer” version of an existing drug without generic competition just when the older version is about to face competition. In the 118th Congress, these reforms were originally introduced as one combined bill under the Affordable Prescriptions for Patients Act. However, during markup, the product hopping provision was removed, allowing the remaining patent thicketing portion of the bill to advance and ultimately pass the Senate unanimously in July 2024. Now, in the 119th Congress, these reforms have been re-introduced as two separate bills. The momentum behind these reforms has been powered by patients who sent over 40k letters and made over 30k calls to Congress demanding action. The Senate must act now to pass these crucial reforms that will help bring down costs for patients and taxpayers, increase competition, and deliver relief to Americans struggling with high drug prices. — (P4ADNow, Politico, Congress.gov, Congress.gov, P4ADNow)
CMS Ends Innovative Payment Models
On Wednesday, CMS announced it will not move forward with two prescription drug payment demonstration programs proposed under the previous administration. While these models were not yet in effect, the Medicare $2 Drug List Model would have capped the copay for certain generic drugs covered by Medicare at $2 a month, and the Accelerating Clinical Evidence Model would have incentivized the completion of confirmatory trials for drugs with accelerated FDA approval. However, CMS is, for now, continuing the Cell and Gene Therapy Access Model to help Medicaid patients, starting with those living with sickle cell disease, by increasing access to potentially transformative treatments and reducing health care costs and burdens to state Medicaid programs. With one in three Americans struggling to afford their prescription drugs and nine in 10 voters calling for Congress to prioritize further action to lower drug costs, it is concerning that CMS has chosen to halt the implementation of two of these models that could have provided relief to patients. — (Inside Health Policy, Axios, CMS, CMS, Politico, KFF, P4ADNow)
Novo Nordisk Ramps Us Lobbying
Novo Nordisk is bolstering efforts to protect its massive profits by hiring a lobbyist who previously worked to weaken key provisions in the 2022 prescription drug law. The company has become a poster child for pharmaceutical industry greed, raking in billions from its expensive GLP-1 treatments while aggressively lobbying against drug price reforms. In 2024, the company shattered its own record, spending $5.8 million on lobbying, much of which was used to oppose legislative solutions to lower drug prices. But its efforts don’t stop there. The company is also waging a legal battle. Determined to maintain its monopoly pricing power over its drugs, Novo Nordisk is one of eight companies that have filed lawsuits to block the implementation of the Medicare negotiation program which could reduce prices on several of the company’s blockbuster drugs over the next two years. But patients are fighting back. P4AD filed an amicus brief in the case amplifying the voices of those who urgently need lower negotiated prices and would suffer if Novo Nordisk was successful in the courtroom. It’s US v. Pharma: patients fought hard for these reforms, and they won’t let Big Pharma strip them away. — (NPR, Open Secrets, Politico, The Lever, KFF, Pew Research, P4AD, Fightpharma.org)
Attorneys Recalled to Defend Medicare Negotiation
Eli Lilly’s massive profits from GLP-1 treatments Mounjaro and Zepbound contributed to CEO David Ricks’ staggering $114 million salary in 2024. Whether drug industry executives take home $20 million or $100 million, it’s a stark reminder of who it is that foots the bill: patients and taxpayers.
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Welcome to the Week in Review.
Key Drug Price Reforms Reintroduced
Senators Bernie Sanders and Ron Wyden, Ranking Members of the Senate HELP and Senate Finance Committees, respectively, reintroduced a health package that includes key bipartisan reforms to lower drug prices by curbing some of the shady tactics used by pharma and pharmacy benefit managers to keep prices high for patients and taxpayers. These reforms were left out of the year-end package in 2024 due to last-minute political maneuvering, and their reintroduction provides a second chance to address manipulative tactics like patent thicketing on biologics, which block more affordable biosimilars from entering the market and keep prices high. In a statement, P4ADNow Executive Director Merith Basey called on Congress to “act swiftly to pass these measures and prove that [Congress’] priority is lowering costs for Americans – not caving to corporate interests.” Patients have been calling for these reforms for years, including Kaye Peterson, a P4AD patient advocate from Kentucky who lives with type 1 diabetes. In an LTE in The Lebanon Enterprise this week, Kaye highlighted the impact of patent thicketing on insulin prices and urged Congress to pass these reforms. With mounting pressure from patients and advocates alike, lawmakers must choose between protecting Pharma’s profits or delivering long-overdue relief to Americans struggling to afford their medications. – (The Hill, Politico, Congress.gov, The Guardian, Congress.gov, P4ADNow, The Lebanon Enterprise)
Pharma-Backed Bills Seek to Undermine Medicare Negotiation
Big Pharma is escalating its campaign to undermine the 2022 prescription drug law – and they’ve found allies in Congress. Last week, the EPIC Act was reintroduced in the House to unnecessarily extend the Medicare negotiation exemption period for small-molecule drugs from nine to 13 years. On Wednesday, Senator Thom Tillis introduced a companion bill in the Senate, further escalating efforts to undermine the historic Medicare negotiation program. Meanwhile, the Maintaining Investments in New Innovation (MINI) Act was also reintroduced in the House this week by Rep. Don Davis – another bill aimed at creating loopholes for pharma by extending the exemption for genetically targeted therapies to 13 years – even though the current nine years is more than enough time for drugmakers to recoup investments. Yesterday, P4AD sent a letter to every Senator, urging them to oppose the EPIC Act, ORPHAN Cures Act, and MINI Act – building on a similar letter sent to the full House last month. The 2022 prescription drug law already strikes a fair balance between encouraging innovation and lowering prices for patients. Lawmakers must decide whether they stand with patients or with Pharma’s profits. – (Congress.gov, Inside Health Policy, Congress.gov, Congress.gov, P4ADNow, P4ADNow)
Monitoring Potential Impact of New Tariffs
Newly announced tariffs on pharmaceutical imports from China are raising important concerns about potential drug price increases and supply shortages. While it is premature to assess the full impact on patients, in particular since the recent tariffs levied on Mexico and Canada were delayed yesterday, we’re closely monitoring the situation. Any measure that could drive up drug costs for patients is a serious concern. We’ll continue to track developments and advocate for solutions that protect patients from higher prices. – (Forbes, Bloomberg Law, NBC News)
Attorneys Recalled to Defend Medicare Negotiation
At least two attorneys involved in defending Medicare’s drug price negotiation program have been recalled to their positions – after being caught up in the widespread layoffs across the government. This is a promising sign that the administration is committed to upholding the 2022 prescription drug law. This follows the DOJ’s recent brief defending Medicare negotiations in the case brought by Novartis to undermine the program. Additionally, last Friday marked the deadline for drugmakers to agree to participate in the next round of negotiations. While only a handful of companies have publicly confirmed their participation, none have publicly refused – an encouraging sign that the program could continue to move forward as planned. We remain hopeful that all manufacturers will negotiate in good faith and that the second round of negotiations will deliver significant savings – in line with the 62% average list price reduction achieved in the first round of negotiations. – (STAT News, Bloomberg, Inside Health Policy, Endpoints News, Fierce Healthcare, Inside Health Policy, Endpoints News)
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House Reintroduces The EPIC Act
Big Pharma is at it again. This week, the House reintroduced the EPIC Act (H.R. 1492), a pharma-backed bill that would extend the Medicare negotiation exemption period for small molecule drugs from nine years to 13 years, forcing patients and taxpayers to pay higher prices for longer. The truth is, this bill is nothing more than a giveaway to the pharmaceutical industry. The 2022 prescription drug law already strikes the right balance to ensure innovation we need at prices we can afford. The law allows Medicare to negotiate after drugs have been on the market for several years while still allowing drugmakers to set prices and raise them in early years. Lawmakers who truly stand with patients must reject this dangerous bill and any other attempts to weaken Medicare negotiation, as extending drugmakers’ monopoly pricing power would only hurt patients and taxpayers. — (Inside Health Policy, STAT, Congress.gov, P4ADNow)
P4AD Files Fourth Amicus Brief Defending Medicare Negotiations
This week, Patients For Affordable Drugs (P4AD) filed an amicus brief in the Third Circuit Court of Appeals, defending Medicare’s ability to negotiate lower drug prices against a lawsuit brought by Novartis. This marks the fourth patient-centered amicus brief filed as part of P4AD’s US v. Pharma campaign, pushing back on the industry’s baseless claims that Medicare negotiation will stifle innovation and limit patient access. The brief highlights the experience of Bob Parant, a P4AD patient advocate, who has been living with type 1 diabetes for more than 50 years and began taking Entresto after emergency triple bypass surgery. As a patient on Medicare who needed both Entresto and insulin, Bob wasn’t able to afford both medications until key reforms in the historic prescription drug law went into effect. Prior to the law taking effect, Bob was forced to switch to a cheaper insulin that he found to be less-effective while posing potential risk to his longterm health. Last week, the Department of Justice filed its brief defending Medicare negotiations in the Novartis case. This was the first government brief of the Trump administration and marked an important moment as questions loomed over whether the new administration would defend the program in the courts. Today’s deadline for drugmakers to agree to enter into negotiations for the next 15 drugs is another key test – both for the administration’s commitment to lower prices and for Pharma’s willingness to engage rather than obstruct. — (P4AD, IP Watchdog, Fightpharma.org, P4AD, Commonwealth Fund, STAT)
Push To Revive PBM Reforms
Pharmacy benefit managers (PBMs) are black boxes in the drug supply chain that operate in secrecy. On Wednesday, the House Energy and Commerce Health Subcommittee held a hearing on the role of PBMs in driving up prescription drug costs. Lawmakers on both sides of the aisle called out the shady middlemen for their anti-competitive practices, highlighting how the three largest PBMs control 80% of the prescription drug market and use their dominance to manipulate formularies – prioritizing high-cost drugs while blocking lower-cost generics and biosimilars. And patients are the ones left paying the price. Stacy in Michigan shared with P4AD that her PBM refused to cover her husband’s life-saving insulin, even after changing jobs for better insurance coverage. Stories like hers are all too common as PBMs restrict access, inflate prices, and profit at the expense of patients. Congress has a critical opportunity to revive long-overdue reforms to increase transparency within the PBM industry that were excluded from the year-end funding deal in December. Patients are counting on Congress to hold PBMs accountable. — (House Energy and Commerce Health Subcommittee, Axios, Modern Healthcare)
In Case You Missed It
According to an HHS Office of Inspector General report, Medicare spending on 10 diabetes drugs, including seven GLP-1 treatments, increased 364% over four years from $7.7 billion in 2019 to $35.8 billion in 2023. Rising spending on these high-cost treatments raises serious concerns about the financial strain on patients and our health care system.
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DOJ Defends Medicare Negotiations
The Trump Department of Justice (DOJ) took the first step in defending Medicare negotiation in court. On Wednesday, the DOJ filed a brief in the Third Circuit Court of Appeals in the Novartis case, maintaining the government’s legal defense of the Medicare negotiation program – for now. Notably, this is the first DOJ brief under the Trump Administration, and it remains largely unchanged from previous filings, signaling that the government is standing with the program against Big Pharma’s multi-million dollar legal assault. This is an encouraging sign for the nine million patients on Medicare who are expected to save at least $1.5 billion out-of-pocket in the first year. However, this fight is far from over. Several industry-backed lawsuits still threaten the program, and with a critical February 28th deadline approaching for drugmakers to agree to negotiate in the next round, PhRMA’s pressure campaign is in full force. Patients fought hard for this law – and we will continue to hold the administration accountable to ensure it delivers the savings millions of Americans are counting on. — (Politico, O’Neill Institute, Inside Health Policy, STAT, Axios, FightPharma.org, P4AD)
Push For Competition Bills & Defending Medicare Negotiations
With a new Congress in session, there is a critical opportunity to continue to advance reforms that lower drug prices. Last Congress, P4AD championed a slate of bipartisan bills to curb anti-competitive practices by drug companies and pharmacy benefit managers (PBMs), including:
Millions of patients are counting on lawmakers to revive these reforms and pass them into law to rein in the skyrocketing cost of prescription drugs and reduce taxpayer spending. At the same time, Big Pharma and its allies are aggressively pushing legislation to undermine Medicare negotiations. The recently re-introduced Orphan CURES Act would expand the Medicare negotiation exemption beyond drugs with a single orphan disease designation to those with multiple indications, giving drugmakers more power to inflate prices. Meanwhile, the EPIC Act, which is expected to be re-introduced, would extend the negotiation exemption period for small-molecule drugs from nine to 13 years – keeping prices high for longer. Pharma is framing both bills as pro-innovation, but in reality, they are blatant attempts to protect monopoly pricing at the expense of patients. Lawmakers must reject these industry-backed measures and instead deliver the bold reforms that Americans overwhelmingly support. — (Congress.gov, CBO, Congress.gov, CBO, Congress.gov, P4ADNow, Congress.gov, STAT, P4ADNow)
Drugmakers Meet With President Trump — Patients Excluded
Big Pharma is cozying up to President Trump while patients are shut out. Yesterday, drug industry executives from PhRMA sat down with President Trump for a third time to push their agenda to weaken the 2022 prescription drug law and keep drug prices high. Meanwhile, patients who are most harmed by drug pricing policy have yet to be granted a seat at the table. Make no mistake: PhRMA’s so-called commitment to “innovation and affordability” is nothing more than a smokescreen for their all-out assault on the drug price provisions in the IRA which they’ve openly declared is their top priority, The drug industry has spent millions buying access to the administration, but patients won’t stop fighting to protect the reforms they fought for — and we’re watching to see whether Trump follows through on his promise to lower drug prices or caves to Big Pharma’s influence. — (Reuters, Fierce Healthcare, The Wall Street Journal, MedPage Today)
In Case You Missed It
At a White House event yesterday, following President Trump’s meeting with PhRMA executives, Pfizer CEO Albert Bourla was met with loud boos from the audience as he was introduced. One can safely assume this reaction underscores the deep frustration Americans feel toward Big Pharma’s greed, as drug companies continue to prioritize profits over patients while millions struggle to afford their medications.
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P4AD Report Debunks Drug Industry Myths About IRA
This week, P4AD released a report dismantling Big Pharma’s false claims about the 2022 prescription drug law, highlighting how the law is already lowering costs for patients and taxpayers. The report reveals PhRMA, the drug industry’s largest lobbying arm, spent more than $235,800 on social media ads over a four month period spreading misinformation about the law’s “unintended consequences” as it relates to patient costs, access, and future innovation. The report rebutted each of PhRMA’s claims with data and evidence – proving that the industry’s assertions are misleading at best and outright false at worst. At a press briefing on Wednesday, P4AD’s president and founder David Mitchell, and AARP’s prescription drug policy principal Leigh Purvis, debunked these claims, calling out the industry’s desperate attempt to regain its complete monopoly pricing power. They underscored how the law is delivering tangible savings to millions of Americans while ensuring fair profits for the industry and safeguarding future innovation. After decades of Big Pharma’s unchecked pricing power, the 2022 prescription drug law is reining in drug costs, and patients remain committed to defending this progress. — (P4AD, Youtube)
RFK Jr. Selected As HHS Secretary
Robert F. Kennedy Jr. was confirmed yesterday as the Secretary of the Department of Health and Human Services (HHS), but after two Senate hearings last week, he offered little clarity on how he plans to lower prescription drug prices – raising concern for patients who urgently need access to affordable medications. With bipartisan interest in reducing skyrocketing drug costs and nine in 10 voters – on both sides of the aisle – demanding action, all eyes are on Secretary Kennedy. Will he champion reforms that put patients first or side with Big Pharma? — (Fierce Healthcare, P4ADNow, P4ADNow)
Rising Cost of Cell And Gene Therapies
New gene therapies are hitting the market with staggering price tags based on what the market can bear – not development costs. An investigation by ProPublica focused on one such treatment, Zolgensma, a $2.1 million gene therapy for children born with spinal muscular atrophy (SMA), which has become a prime example of how Big Pharma sets drug prices. Despite critical early grassroots fundraising and taxpayer-funded grants from the National Institute of Health (NIH), Zolgensma’s price was driven by Wall Street projections and a calculated pricing strategy. Novartis leveraged value-based pricing studies that floated prices as high as $5 million, helping to condition the market toward accepting an astronomical price tag. The final $2.1 million price was framed as a “compromise,” even though it had little to do with actual R&D costs and everything to do with maximizing profits for investors. This approach has set a dangerous precedent: new gene therapies can now leverage these prior launch prices as justification for setting even higher ones. Since Zolgensma’s debut, cell and gene therapies like Hemgenix ($3.5M) and Lenmeldy ($4.25M) have pushed the ceiling higher, straining public programs like Medicaid and Medicare. As P4AD’s David Mitchell told ProPublica, “every time the benchmark moves up, they think, ‘Well, we can get away with more.” Without reforms to rein in high launch prices, patients and taxpayers will continue to pay the price for Pharma’s unchecked greed. — (Drug Discovery Trends, ProPublica)
In Case You Missed It
Payouts to shareholders of major drug companies like Merck, Johnson & Johnson, and Pfizer more than tripled over the past two decades, according to a new study published in JAMA. Meanwhile, patients continue to struggle to afford their essential medicines as a result of Big Pharma’s anti-competitive tactics.
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New Bills Attempt To Weaken The IRA
P4AD sent a letter to all members of the House of Representatives yesterday, opposing two bills that would weaken the Medicare Drug Price Negotiation Program – a critical lever that will lower drug prices for millions of Americans on Medicare. The letter makes it clear: the 2022 prescription drug law was designed to balance innovation with fairer pricing, ensuring drug companies can profit while preventing unnecessary price hikes that leave patients struggling to afford their medications. One bill, the ORPHAN Cures Act, would expand Medicare’s negotiation exemption beyond drugs approved for a single orphan disease to those with multiple indications—providing a loophole for drugmakers to extend unwarranted monopolies and inflate prices indefinitely. Orphan drugs with multiple indications already generate significant revenue from expanded patient populations, in both public and private markets, and don’t need additional exemptions to remain profitable. The second bill, the Ensuring Pathways to Innovative Cures (EPIC) Act, which is expected to be reintroduced, would extend the negotiation exemption for small molecule drugs from nine to thirteen years, forcing patients to pay higher prices for longer. This change is unnecessary, as the current law gives drugmakers ample time to recover R&D costs. Companies can still set launch prices and raise them in subsequent years – Medicare negotiation simply ensures they can’t keep hiking prices unchecked. These bills aren’t about innovation – they’re about protecting pharma’s profits and undermining the law at the expense of patients. Any members who are committed to lowering drug prices should oppose these harmful bills and reject industry-backed efforts to weaken the law. — (P4ADNow, KFF, STAT, BIO)
Price Hikes On 15 Drugs Selected For Medicare Negotiation
The drugmakers behind the 15 drugs selected for the second round of Medicare negotiation have spent years rapidly hiking prices. Cancer drugs on the list lead the pack: Pomalyst, a multiple myeloma treatment, has soared in price by 130% since its launch in 2013, while Ibrance, a breast cancer medication, has increased by 62% over the 10 years its been on the market. Novo Nordisk has hiked prices on expensive GLP-1 treatments Ozempic and Rybelsus every single year since 2021. Meanwhile, GlaxoSmithKline’s (GSK) inhaler Trelegy is up 24% since 2017 and Breo Ellipta has jumped 52% since 2013. Many of these drugs have also been shielded from competition by layers of patents, extending Pharma’s monopolies long past the dates they should have faced lower-cost alternatives. Austedo, a drug used to treat movement disorders like Huntington’s disease, has 28 active patents, while Ozempic and Trelegy each hold 20 active patents—ensuring prices stay high while patients foot the bill. — (NBC, AARP, Pharsight, Pharsight, Pharsight)
Americans Demand Health Care Affordability
A new Gallup and Emory University poll found that more than half of Americans ranked improving access and lowering costs as one of their top three concerns – cutting across party lines and underscoring the mounting frustration over soaring prices. Big Pharma has rigged the system to put excessive profits over patients, driving up prices and leaving one in three Americans struggling to afford their medicines. With public demand for reform at an all-time high and nine out of 10 Americans in agreement that Congress needs to do more to lower drug costs, the question is no longer whether drug prices need to come down—it’s whether lawmakers will stand with patients or protect Pharma’s bottom line. — (Gallup/Emory University, Axios, KFF)
Big Pharma’s Big Earnings
Quarterly earning reports from 2024 are rolling in and unsurprisingly, Big Pharma has once again come out on top. Pfizer beat expectations and raked in $17.76 billion in fourth-quarter revenue, a 22% increase from the same period last year. Novo Nordisk reported revenue of $12.26 billion in the period, largely driven by skyrocketing sales of its pricey GLP-1 drug Wegovy. Meanwhile, GSK pulled in $10.4 billion in revenue, as it continues to charge more than $11,000 for its endometrial cancer treatment, Jemperli, among other medications. These earnings are a blunt reminder: Big Pharma is swimming in cash and can afford to lower prices. Instead, they continue to hike drug costs while lobbying to block reforms—putting profits over patients at every turn. — (CNBC, The Washington Post, Fierce Pharma, The Washington Post)
In Case You Missed It
Ranking Members of the House Committee on Energy and Commerce, the House Education and Workforce Committee, and the House Ways and Means Committee wrote a letter to the Government Accountability Office requesting that they monitor the Medicare Drug Price Negotiation Program to ensure the new Trump administration upholds its promise to lower prescription drug prices and drive down taxpayer spending.
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