The Week in Review in Prescription Drug Pricing

 TEN days to go. Welcome to the Week In Review.

1. Dubious Discount Cards…Disappear?

• The Trump administration’s vow to deliver $200 drug coupons to Medicare beneficiaries before Election Day is a no-go, according to Medicare officials. Such a move may violate election law and has triggered congressional requests to review the plan. What Americans desperately need now is lasting reform to lower drug prices, not another political ploy that changes nothing for the millions of people suffering under Big Pharma’s greed. — (The New York Times)

2. Stage Set for Drug Pricing Reform in 2021

• In 2021, Congress is expected to continue its push to lower drug prices that was — understandably — interrupted by the COVID-19 pandemic. Regardless of the makeup of the 117th Congress, one thing is certain: Our legislators must work together to stand up to Big Pharma and provide relief to all Americans. — (FierceHealthcare)

3. Double-Charged in a Pandemic

• Billions of dollars in federal funding flowed to pharma’s coffers to develop COVID-19 vaccines. Now, pharma plans to charge Americans a second time for the taxpayer-funded doses and make a killing on the public investment. This game is rigged — we’re being set up to pay twice. — (Salon)

4. Oh, COME ON

• The FDA on Thursday approved Gilead’s COVID-19 drug remdesivir, only days after data from a WHO megastudy suggested the drug had “little to no” effect on COVID-19 patients and did not prevent death. Even so, one course of treatment for the taxpayer-funded drug is $3,120, a price that ignores the massive taxpayer support that prompted its creation. Accessibility to an expensive COVID-19 treatment with mixed reviews shouldn’t be one more thing we need to worry about. — (STAT)

5. Milking Mayhem

• Pfizer could make as much as $3.5 billion next year from its potential COVID-19 vaccine and $1.4 billion in the years following, according to analysts. Drug corporations are treating this unprecedented public health crisis as a way to cash in. — (FiercePharma)

NASHVILLE, Tenn. — During tonight’s presidential debate in Nashville, Vice President Joe Biden promised to stand with patients and let Medicare negotiate for lower drug prices.

“Drug prices are a top issue for voters, and we appreciate Vice President Biden emphasizing his plan to lower prices, promote competition, and let Medicare negotiate,” said Ben Wakana, executive director of Patients For Affordable Drugs Now.
 
Watch the clip here.

TRANSCRIPT:

Vice President Biden: “We’re going to make sure we reduce the premiums and reduce drug prices by making sure that there’s competition that doesn’t exist now by allowing Medicare to negotiate.”

BACKGROUND:

• Nearly 9 out of 10 voters say lowering prescription drug prices is a top health care issue deciding their 2020 presidential vote. 
• 86 percent of Americans support “allowing the federal government to negotiate with drug companies to get a lower price on medications for people on Medicare.”
• According to the University of Pennsylvania, Vice President Biden’s proposals would lower average prescription drug prices by roughly 60 percent.
• Vice President Joe Biden’s plan to lower drug prices has several key components:
  • Allow Medicare to negotiate for lower prices and limit price increases for brand-name drugs to the rate of inflation
  • Create policies to counter anti-competitive practices like “pay-for-delay” deals, patent thickets, and evergreening
  • Evaluate the role of taxpayer investments in R&D and factor it into pricing decisions
• Drug prices are continuing to rise, with increases on over 500 drugs in January 2020 alone and nearly 250 additional drugs in the first six months of the COVID-19 pandemic.

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WASHINGTON, D.C. — Patients across the country are calling on President Trump and former Vice President Biden to discuss their plans to lower the prices of prescription drugs at the final presidential debate in Nashville Thursday.

“Ever increasing drug prices continue to hurt Americans all across the country,” said David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now. “And with the pandemic stealing lives and livelihoods, voters need to hear from the candidates about how they will lower the prices of prescription drugs. We will be listening as the candidates lay out their final arguments Thursday — to hear how they will fight for patients and stand up against pharma.”

According to the Kaiser Family Foundation, nearly 9 out of 10 voters say lowering prescription drug prices is a top health care issue deciding their 2020 vote. And, 35 percent of voters say drug pricing is among their “most important” voting issues, according to Gallup.

Patients in 15 key battleground states have shared stories of the impact skyrocketing drug prices have had on their lives. Here’s a sample of what patients across the country want the presidential candidates to understand:

Blythe Kauhn, Chandler, AZ, type 1 diabetes: “I feel like more people need to understand that it’s not cheap to have conditions that don’t go away. We don’t get to say, ‘Oh, I don’t want to have diabetes this month.’”

Kris Garcia, Denver, CO, bleeding disorders: “When you cast your ballot, make sure your candidate has a plan to lower drug prices.”

Clayton “DJ” Martin, Jacksonville, FL, sickle cell disease: “As a father with sickle cell, with a daughter with the sickle cell trait, I worry about her future because of the high prices of drugs.”

Patricia McKenzie, Lithonia, GA, type 2 diabetes: “People have to choose between eating and their medications. They have to choose between life and death. And that should not be a choice. Not here in America.”

Jacquie Persson, Waterloo, IA, Crohn’s disease: “I’m voting for candidates who will stand up to Big Pharma and lower the prices of prescription drugs.”

Tammy de la Cruz, North Las Vegas, NV, chronic inflammatory demyelinating polyneuropathy: “The cost of this medication is anywhere from $1,000 to $1,500, and I get it every week. Without it, I fear I will become paralyzed again.”

Rose Keller, Concord, NH, cystic fibrosis: “The high cost of drug prices has stripped me, and other young patients like me, of the opportunity to dream about what we might be when we grow up.”

Don Kreis, Concord, NH, Rose’s father: “For my sake, and for the sake of my daughter, I hope you will vote for candidates who fight Big Pharma and stand up for lower drug prices.”

Steven Hadfield, Charlotte, NC, blood cancer: “The doctor has recommended me to work less. But I live in fear over my high drug prices.”

Sophie, 19, Grand Rapids, MI, type 1 diabetes: “It’s going to be my first time voting this year. Prices of drugs have a huge effect on my vote.”

Hazel, 12, Grand Rapids, MI, type 1 diabetes: “I hope you’ll vote for candidates who will fight for lower drug prices.”

Travis Paulson, Eveleth, MN, type 1 diabetes: “Since the pandemic has started, we’ve been forced to buy our medications and insulin at the extraordinary prices they charge here in the U.S.”

Heidi Kendall, Missoula, MT, chronic myeloid leukemia: “It’s scary to depend for my life on a drug that costs so much.”

Kolton Chapman, Pickerington, OH, ulcerative colitis: “When I was on Entyvio, I was responsible for paying $2,000 a month. It was more than I owe in student loans, so I ended up filing for bankruptcy because of my medical debt.”

Rachel Burnett, Pittsburgh, PA, Crohn’s disease: “It’s so unfair to have these illnesses, and it’s so unfair to have to pay so much just to stay alive.”

Candice Brown, Alexandria, VA, ulcerative colitis: “This drug pricing system was not meant to benefit me as a patient. It was meant to benefit Big Pharma.”

Leah Clark, Columbus, WI, Crohn’s disease: “I have big plans for my future, and I can’t afford to have the high cost of drug prices getting in the way of my accomplishments.”

In September, Patients For Affordable Drugs Now launched a national campaign lifting up the voices of patients who are calling on voters to support candidates who will stand up to Big Pharma and fight to lower prescription drug prices. The campaign features TV, radio, and digital ads alongside tools to give grassroots patient advocates the power to engage with candidates on the issue of drug prices. P4ADNow is an independent, bipartisan patient organization focused on policies to lower drug prices. It does not accept funding from any organizations that profit from the development or distribution of prescription drugs.
 

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We need Clare-ity on drug prices.

1. Follow the Money: Pharma Peddles Influence in State Races

• Big Pharma’s tentacles are reaching into the industry’s deep pockets, throwing millions in cash donations at state candidates’ races across the country to prevent state legislatures from passing drug pricing reform, a comprehensive investigation into the money flow found. Pharma may have the cash, but we must use our voices and votes to call on our legislators to stand up to drug companies and protect us from predatory pricing. — (STAT News)

2. Drug Pricing on the Ballot

• On Tuesday, Patients For Affordable Drugs Now hosted a presidential town hall on drug pricing featuring representatives from the Trump and Biden campaigns and moderated by Kaiser Health News’ Elisabeth Rosenthal. We are grateful for their participation in a substantive conversation about how to lower drug prices — a top issue for many voters heading to the ballot box. Watch the full event here. — (Patients For Affordable Drugs Now)

3. Taxpayer Cash Flows to Pharma

• AstraZeneca received $486 million from the U.S. federal government for the development and supply of 100,000 doses of its COVID-19 antibody treatment. Let’s add it to the growing list of vaccines and treatments that taxpayers have funded — we deserve to see our investments reflected in the final price. — (Reuters)

4. Transparency Needed

• The government has awarded billions of dollars in COVID-19 vaccine deals to drug companies through a third-party organization, bypassing typical contracting and leaving American taxpayers in the dark about how their money is being spent. Taxpayers need transparency now. — (NPR)

5. Betting on Pandemic PR

• The drug industry is betting its outsized role in the COVID-19 pandemic will buoy reputations and profits — not to mention increase political leverage as the companies face drug pricing reforms. Pharma’s work on vaccines and treatments does not erase the industry’s history of abusive pricing and monopolistic behavior. We must stay the course and continue our work to hold Big Pharma accountable and lower drug prices. — (The New York Times)

WASHINGTON, D.C. —This week, two independent investigations detailed how Big Pharma is showering state and federal officials with tens of millions of dollars in hopes of winning their votes in legislative fights next year.

• STAT NEWS: “First-of-its-kind examination shows how widely pharma showers campaign cash at the state level”
• HOUSTON CHRONICLE: “Prescription drug costs take center stage in Texas races for Congress”

“Pharma may have deep pockets, but patients have our voices and our votes,” said David Mitchell, a cancer patient and the founder of Patients For Affordable Drugs Now. “This election year, patients are sending a message to legislators at all levels: Stand with patients, not pharma.”

According to STAT News’ analysis, Big Pharma has conducted a coordinated effort to win favor in state legislatures. “Major pharmaceutical companies and trade groups have helped to fund the campaigns of 1,933 state legislators nationwide in the current election cycle,” according to the investigation.

The Houston Chronicle highlights the influence pharma is attempting to buy in key Texas congressional races. Nationwide, the article highlights the industry’s commitment to congressional donations: “The pharmaceutical industry had already spent $26 million on congressional campaign donations through the first six months of the year trying to influence outcomes.”

In September, Patients For Affordable Drugs Now launched an effort to push back on Big Pharma’s lobbying influence. The grassroots campaign lifts up the voices of patients and calls on voters to support candidates who will stand up to Big Pharma and fight to lower prescription drug prices.

Nearly 8 in 10 Americans say drug prices are “unreasonable,” and nearly 1 in 3 Americans report not taking their medication as prescribed due to price. According to a recent national survey, 7 out of 10 likely voters say a candidate’s position on lowering prescription drug prices is important in deciding who to vote for — including 30 percent who say it is very important.

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Time flies when you’re lowering drug prices.

1. We Already Own It

• Moderna has promised not to enforce patent rights on its developing COVID-19 vaccine “while the pandemic continues” and is “willing” to license rights afterward, meaning other drug companies could produce vaccines based on the same technology. Good. But remember, taxpayers 100 percent funded the vaccine candidate. It should already belong to the people. — (The Wall Street Journal)

2. Do Better, America

• On average, Americans pay about 11 times more for insulin than people with diabetes living in peer countries, according to a study from the RAND Corporation. Big Pharma is going to continue charging what it can get away with for this vital, life-saving medication until our elected leaders make lasting, meaningful reform. — (Axios)

3. Big Pharma Scam

• Pfizer has sued the federal government in an attempt to weaken federal policies prohibiting direct copay assistance for Medicare beneficiaries. The company claims it’s just sticking up for patients who need a $225,000 Pfizer drug to treat a rare and potentially fatal cardiac condition. But all is not as it seems. Copay assistance is a Big Pharma scam. These programs blunt patient sensitivity to drug costs, putting taxpayers on the hook to pick up outrageous price tags. Instead of copay scams, we need comprehensive drug pricing reform to bring down the prices pharmaceutical companies set in the first place. — (Barron’s)

Welcome to the Week in Review.

1. Pharma Exposed

• The House Committee on Oversight and Reform released reports on five pharmaceutical manufacturers’ abusive pricing practices this week. The reports, part of an 18-month investigation led by the committee, revealed internal company documents that expose a disturbing pattern of abusive pricing practices, anti-competitive behavior, and manipulative marketing campaigns. The documents exposed that pharma’s favorite talking points are nothing more than smoke and mirrors. — (Bloomberg, FiercePharma)

2. Debate Dishonesty

• During Tuesday’s presidential debate, President Trump claimed that he has drastically lowered the prices of prescription drugs, including insulin, which he claimed is “so cheap, it’s like water.” Our verdict? False. Many insulin-dependent patients still pay hundreds of dollars each month, and pharma companies have actually hiked drug prices during the pandemic. The president has spent nearly four years in office talking about lowering drug prices, but we’ve yet to see meaningful action. — (STAT)
   

3. Life or Death

• Drug pricing is emerging as a top issue this election year, with candidates from both parties fighting to claim it as their own. But at the heart of the issue are patients like Travis, who is forced to seek lower insulin prices from other countries, and Jacquie, who worries about what she would do if her insurance stopped covering her drug. Lowering drug prices should be more than a talking point for politicians — for many Americans, it’s a matter of life or death. — (Center for Health Journalism)

WASHINGTON, D.C. —An insidious culture of greed is pervasive across the pharmaceutical industry, and today the scale of the problem was revealed. The House Oversight Committee’s investigation into drug corporations exposed a disturbing pattern of abusive pricing practices, anti-competitive behavior, and manipulative marketing campaigns.
 
Not a single price increase was linked to investment in research and development, according to the documents. Instead, drug corporations took unrelenting price increases to meet revenue goals, increase executive bonuses, and maximize corporate profits.
 
The reports examine Amgen, Novartis, and Mallinckrodt and reveal the falsehoods behind pharma’s favorite talking points.
 
Read highlights from the damning documents below.

1. Pharma Claim: High prices exist to recoup R&D, not drive profits.

The reality: Executives’ motivations for price hikes is devoid of desire to recoup or invest in R&D — instead the hikes are intended to increase revenue. Internal company documents showed that company executives weighed price increases against public backlash, not the actual impact on research and development funds. Ultimately, executives decided in favor of price hikes because “we will receive the same press regardless” and “any price increase obviously has positive results.”

2. Pharma Claim: We make life-saving drugs — it’s not about the money for us.

The reality: The committee’s investigation found that executive compensation policies incentivized price hikes. Novartis increased the price of Gleevec 22 times, and its revenue soared. As a result, more than 100 Novartis employees made $1 million in 2014 and 2015.

3. Pharma Claim: Our decision-making centers on the health and well-being of patients.

The reality: After public outrage at its $40,000 price for a single vial of Acthar Gel, Mallinckrodt’s CEO urged changing the vial size of Acthar gel (nearly cutting it in half) to appear like the company decreased the price.

4. Pharma Claim: Charity programs ensure our drugs are affordable and accessible.

The reality: Patient assistance programs serve both as a public relations tool for companies and to increase their bottom line. Novartis’ internal strategy documents estimated the rate of return of its co-pay assistance program would be $8.90 for every dollar invested. When weighing “key messages” to employ after a highly scrutinized price hike, one Novartis executive urged colleagues to emphasize contributions to the copay foundation.

5. Pharma Claim: It’s a robust marketplace and drug companies compete based on price.

The reality: Drug companies often collude — not compete. Amgen’s business strategy for its blockbuster Enbrel centered on matching price hikes by its biggest competitor, AbbVie’s Humira. Internal presentations reveal that Amgen planned its price hikes based on the behavior the company anticipated from AbbVie.

6. Pharma Claim: High prices fuel innovation.

The reality: Taxpayer funding fuels innovative new drugs. High prices fuel the growth of Big Pharma revenue. Drug companies don’t invest until public research shows commercial promise.

7. Pharma Claim: Pharmacy benefit managers are responsible for price increases.

The reality:  Big Pharma loves to point fingers, but internal documents show price increases on Amgen’s Enbrel and Sensipar are unrelated to rebates negotiated with PBMs. Instead, the price hikes are used to raise the company’s revenue. 

Read our takeaways from yesterday’s reports from the House Oversight Committee into pharma giants Celgene and Teva.

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