1. “Fewer people will have to make these tough choices”
As part of the sweeping reforms to lower prescription drug costs for millions of patients, the Centers For Medicare and Medicaid Services (CMS) sent initial price offers to drug manufacturers for the first 10 drugs selected for negotiation. Executive Director of Patients For Affordable Drugs Now (P4ADNow), Merith Basey issued a statement, marking the moment as a historic milestone for patients who face exorbitant drug prices: “We’ve listened to stories of people rationing insulin or other life-sustaining medications just to make ends meet. By advancing this process of direct negotiation with drug companies, CMS is helping ensure that fewer people will have to make these tough choices.” Lower negotiated drug prices will deliver relief to patients who regularly pay some of the highest prices for drugs in the world. In fact, on the same day that CMS sent its initial price offers to drug makers, the Office of the Assistant Secretary for Planning and Evaluation (ASPE) issued a report that found that in 2022, prices in the United States (U.S). across all drugs (brands and generics) were nearly three times as high as prices in peer nations and brand drugs were at least 3.22 times as high. Thankfully, Medicare’s new negotiation authority ensures that the program will rein in high drug prices and increase access to innovative medications for people on Medicare by considering factors like a drug’s clinical benefit compared to its therapeutic alternatives as well as current unmet needs. — (P4ADNow,ASPE, Axios)
2. Legal Battle For Drug Pricing
AstraZeneca’s legal challenge against Medicare’s drug price negotiation program, amid oral arguments, faced scrutiny from the Judge, shedding light on the ongoing struggle to lower drug prices for people on Medicare. The lawsuit, part of a broader, coordinated effort by big drug companies, aims to undermine Medicare’s newfound authority to negotiate lower drug prices, as established by the Inflation Reduction Act. AstraZeneca’s contention seeks to safeguard its control over pricing for its diabetes and heart failure drug, Farxiga, which raked in $4.4 billion in revenue for the company in 2022 alone. However, the Judge’s skepticism toward AstraZeneca’s arguments underscores the questionable tactics employed by pharmaceutical giants to prioritize profits over patient access. If these lawsuits were to succeed and overturn the Inflation Reduction Act’s provisions for Medicare drug price negotiation, millions of Americans would continue to be forced to shell out for high-priced medications they need to survive and taxpayers would miss out on the potential savings of close to $100 billion over ten years. Patients For Affordable Drugs (P4AD) strongly opposes these self-serving maneuvers, advocating for policies that ensure lower drug prices for people on Medicare. In a statement, P4AD’s Executive Director, Merith Basey underscored that “Medicare was never intended to serve as a blank check for Big Pharma’s insatiable greed.” And that P4AD remains steadfast in its commitment to “thwart the pharmaceutical industry’s attempts to exploit the US legal system, ensuring essential policies aimed at reducing drug costs and guaranteeing patient access to affordable medications.” — (Georgetown Law, STAT News, Bloomberg Law, P4AD)
3.Bipartisan Solutions To Increase Competition
Big Pharma’s abuse of our patent and regulatory systems grants drug companies unlimited pricing power and drives up costs for patients and taxpayers. A prime example this week: asthma inhalers. Senator Tammy Baldwin penned a letter to the makers of asthma inhalers demanding them to remove improperly listed patents — a tactic used by big drug companies to delay competition and force patients to pay high prices. Asthma inhalers can fetch prices exceeding $600 in the U.S. — yet in other countries, these essential medications are being sold for a fraction of that list price. Novo Nordisk’s recent announcement to stop U.S. sales of Levemir insulin (vials and pens) is another example pulled from the Big Pharma patent abuse playbook. Drugmakers who engage in this tactic called “product hopping” remove viable products from the market, limiting treatment options for patients, and then replacing them with newer versions that are more expensive. Robin Feldman, a University of California law professor, described the scheme to USA Today as “a shell game in which the consumer always loses.” Lawmakers have an opportunity to advance bipartisan solutions that tackle these barriers to increased competition and lower drug prices to patients. Congress, over to you! — (The Washington Post, USA Today,The Daily Herald)
BONUS: The announcement by the Centers for Medicare and Medicaid Services regarding the focus on sickle cell disease (SCD) as the inaugural target of the Cell and Gene Therapy Access Model marks a significant step towards addressing the unmet needs of patients on Medicaid living with rare diseases and increasing the reach of potentially curative treatments in the future. The agency announced plans to negotiate with drugmakers over the prices of these gene therapies to ensure they’re accessible for the thousands of patients on Medicaid living with SCD. By facilitating access to potentially life-changing treatments and supporting outcomes-based agreements with manufacturers, this model has the potential to not only improve health outcomes for patients on Medicaid living with SCD but also alleviate financial burdens on communities facing systemic barriers to access essential medications.
Welcome to the Week in Review.
1. Fighting Against Lawsuits To Stop Negotiations
On Wednesday, January 31st, oral arguments will be heard in AstraZeneca’s legal challenge against Medicare’s ability to negotiate the price of the company’s diabetes and heart failure drug, Farxiga. Amidst this legal battle, Patients For Affordable Drugs Now (P4ADNow) has thus far signed onto seven amicus briefs led by Public Citizen and supported by AARP, Protect Our Care, Doctors for America, and Families USA to support the government’s opposition and explain the harm high drug prices have on people on Medicare. Meanwhile, by February 1st, the Centers for Medicare & Medicaid Services (CMS) are set to dispatch initial offers to the manufacturers of the first 10 drugs selected for negotiation. Drugmakers will then have 30 days to agree on the maximum fair price or provide a counteroffer. This next step marks a historic stride towards lower negotiated prices for millions of people on Medicare in 2026 and increased access to medications at prices they can afford. — (O’Neill Institute, Public Citizen, ALM BenefitsPro)
2. Big Pharma Greed: Wheeling and Dealing
New figures show that drug corporations are pulling in record profits and have been cashing out on billion-dollar biotech deals. Johnson & Johnson, manufacturer of three of the drugs selected for Medicare negotiation, announced $4.8 billion in Q4 earnings which is nearly double their earnings from the previous year, according to Accountable.US. Sanofi, one of the big three insulin makers that monopolize the industry, announced a multi-billion dollar acquisition of a biotech company, making it the sixth drugmaker buyout valued at $50 million or more this year. Despite all the huffing and puffing from drug industry CEOs about recent drug price reforms slowing down investment, Big Pharma is making huge returns on drug sales and new drug development is doing just fine! In fact, a report published by S&P Global Ratings projects that the global pharmaceutical industry will have “healthy revenue growth through 2027.” It’s clear that drug corporations put profit over the well-being of patients and we’ll continue to expose their shady behavior until everyone can access medications at prices they can afford. — (Accountable.US, Biopharma Dive, S&P Global)
3.Push For Competition
Big drug companies exploit our patent and regulatory systems to extend their monopolies and keep prices high, at the expense of patients. Big Pharma wields anti-competitive tactics like patent thickets and pay-for-delay deals to extend their timed monopolies and block competition from the market. Right now, there is a critical window of opportunity to pass legislation to curb these patent abuses and bolster competition to lower drug prices for all patients. These competition bills have critical bipartisan support from influential legislators: “Some of the most liberal Democrats in Congress and the House GOP’s lead budget writer are backing a plan to keep drugmakers from gaming the patent system,” wrote Axios reporter Peter Sullivan. Patients urgently need legislators to pass these reforms to curb anti-competitive practices and strengthen market forces to drive down steadily increasing drug prices. — (Chicago Tribune, Reuters, Endpoints, Axios)
Welcome to the Week in Review.
1. Pushing for Transparency
In the health care policy arena, the focus centers around the passage of the Lower Costs, More Transparency Act (HR 5378). With bipartisan backing, this legislation seeks to increase transparency and affordability in healthcare pricing practices. One important provision of the bill requires the Food and Drug Administration (FDA) to streamline the approval process for generic drugs by mandating that the FDA explain to generic drug companies why their applications were not approved and therefore better enable them to address issues that might stand in the way of their future approval. If passed, this provision would not only help increase competition but is also projected to result in over $800 million in cost savings. Facilitating generic entry is a key step toward reshaping the pharmaceutical landscape to lower costs for patients. Ironically, current negotiations between the House and Senate underscore the lack of transparency in the dynamics themselves that are shaping healthcare policies for patients. (MoneyTalks News, STAT News)
2. Easing the Burden for People on Medicare
In a significant development for many people on Medicare, the 2022 Inflation Reduction Act cap on out-of-pocket expenses for Part D drugs has gone into effect. This year, many individuals on Part D plans and who only take brand-name drugs will pay no more than $3,300 out of pocket annually for their medications, eliminating the 5 percent coinsurance after reaching the catastrophic spending threshold. The cap is expected to bring relief to approximately 1.5 million people, leading to substantial savings for patients. By 2025, the cap will further decrease to $2,000. In a piece from the Wall Street Journal, Patients For Affordable Drugs patient advocate Judy Aiken, who faced over $9,000 in out-of-pocket costs last year for her medication, Enbrel, expressed relief, emphasizing the positive financial impact of the cap on her well-being. David Mitchell, founder and president of P4AD, highlighted the remarkable savings this change brings and the crucial protection it offers to people on Medicare. These savings come at the same time as a notable escalation in list prices for a range of widely prescribed medications, including those by pharmaceutical giants like Novo Nordisk and Eli Lilly. This is despite the outlier in some of the older and competing insulins which saw a January 1 price drop for some of their older competing insulins timed to avoid paying additional rebates and following years of patient advocacy to lower the price of insulin. (KFF, WSJ, P4ADNow, NPR, Forbes, WSJ, CNN)
BONUS: Public Citizen and AARP, both prominent advocates for lowering drug prices, have released reports this week. Public Citizen’s report emphasizes the pharmaceutical industry’s disingenuous opposition to drug pricing regulations, revealing that major drug manufacturers spent billions more on activities such as stock buybacks and executive compensation than on research and development. Meanwhile, AARP’s Rx Price Watch series provides a comprehensive analysis of prescription drug pricing trends, highlighting the staggering annual costs faced by Americans, particularly older adults, and the disproportionate impact on people on Medicare. These reports are important tools for the ongoing conversation on drug costs and the need for comprehensive reforms. (Public Citizen, AARP)
Welcome to the Week in Review.
1. Urgent Need for Drug Negotiations
A recent report from The Commonwealth Fund underscores the issue at the heart of our work at Patients For Affordable Drugs: Americans are paying 3 to 8 times more for brand-name prescription medications than residents of comparable countries. For instance, diabetes treatment, Novolog Flexpen, is “$19.86 per unit after rebates, which is more than 3 times higher than Switzerland’s second-highest list price of $5.36”. This stark contrast, revealed in an analysis of the 10 drugs selected for negotiation under the Inflation Reduction Act, emphasizes, once again, the pressing need for effective drug price negotiations to lower costs for patients. We know drugs don’t work if people can’t afford them. The new drug prices coming out of Medicare drug price negotiations, anticipated to be disclosed by September, carry substantial implications for healthcare costs among the millions of people on Medicare. Meanwhile, as Medicare prepares to continue negotiations in 2024, nine pharmaceutical companies are actively pursuing legal challenges to block the process and keep prices high. Oral arguments in the AstraZeneca case in Delaware will be heard on January 31st. (Commonwealth Fund, AJMC, Bloomberg, STAT, Georgetown University)
2. New Bipartisan Legislation Targets Patent Thickets
Drug companies secure as many patents as possible to artificially prolong monopoly periods and deter competitors. These “patent thickets” can prevent competition for years, keeping prices high and drugs out of reach for patients. On January 11th, Senators Braun, Klobuchar, and Welchintroduced bipartisan legislation in the Senate aimed at addressing patent thickets, a move that would limit pharmaceutical companies asserting just one patent per thicket in litigation. Patients For Affordable Drugs joins Protect Our Care to endorse this crucial legislation, recognizing it as a significant complement to other bipartisan bills, such as Cornyn-Blumenthal, currently advancing through the Senate. The endorsement underscores our commitment to ensuring that patents are wielded to encourage innovation rather than prolong unjustified monopolies and safeguard quality patents that improve existing drugs, benefiting patients, while lowering the litigation barrier for generics and biosimilars to enter the market. (i-MAK, S.3583, S.150)
3. Debunking Pharma’s Claims
Amidst discussions at the J.P. Morgan Healthcare Conference, pharmaceutical stakeholders advocated for a 13-year grace period for small-molecule drugs (which currently have 9 years) before they are eligible for price negotiations, which would equalize the periods for small-molecule drugs and biologics, which currently have 13. However, if pharma wants incentives for all drugs to be equal, Congress should put them both at no more than nine years of exemption from negotiation, which is the current exclusivity period for small-molecule drugs. David Mitchell, P4AD founder and a cancer patient, challenged the pharmaceutical industry’s claims in an op-ed for STAT last year. Mitchell debunked the notion that the Inflation Reduction Act disadvantages small-molecule drugs, emphasizing that many drug companies continue to invest in small-molecule drugs due to their value. Biologics were given additional years of market and data exclusivity compared to small-molecule medicines because the pharmaceuticalindustryinsisted on receiving seven years more market exclusivity for biologics than for small-molecule drugs when the Biologics Price Competition and Innovation Act (which was included in the Affordable Care Act) was being structured. The Inflation Reduction Act achieves a fair solution for the benefit of patients with a balanced approach in incentives since both small-molecule and biologic drugs are crucial for the benefit of patients. (Biospace, STAT News, STAT News, FDA)
BONUS: Senate Democrats, led by Sen. Bernie Sanders, are investigating soaring asthma inhaler costs. The probe addresses the stark U.S. price disparities, emphasizing concerns for patients who often face high costs and rationing. The inhalers sell for hundreds of dollars in the U.S. but much less abroad. (The Hill)
Welcome to the Year in Review.
Over the last 12 months, our community has been at the forefront of amplifying patient voices in the fight to lower drug prices, fighting back against pharma lies, and advocating for bills that will increase competition and reduce patent abuses. From launching the Push for Competition with AARP alongside key allies to supporting the continued fight to ensure the successful implementation of the drug price provisions in the Inflation Reduction Act, our daily efforts have centered on uplifting patient voices and holding those in power to account so everyone in the United States can get the prescription drugs they need at prices they can afford. Highlights from the year include:
1. Patient Advocates Celebrating the Popular Drug Price Reforms
Throughout the year, P4AD patient advocates led the charge in celebrating the impactful drug price reforms in the Inflation Reduction Act. From, Ginny Boynton sharing her story with President Biden about the impact of the Inflation Reduction Act provisions, to Steven Hatfield’s delivery of remarks during the announcement of the first 10 drugs for negotiation, to P4AD Founder and patient David Mitchell’s introduction of President Biden at the White House’s event at the National Institute of Health, patient stories have remained the cornerstone of our advocacy. Approaching the Inflation Reduction Act’s first-anniversary milestone, tangible benefits such as insulin copay caps, free vaccines, and inflation-based rebates underscore its concrete advantages for patients. In the face of Big Pharma’s misinformation, our advocates countered through insightful op-eds and discussions. David’s contributions to The Hill and Bloomberg Law’s podcast shed light on the longstanding ban on Medicare negotiation and the challenges patients endure due to exorbitant drug prices and why the drug law matters. Meanwhile, P4AD Executive Director, Merith Basey’s defense of the Act in conferences and interviews, along with Steven Hadfield’s feature in the Financial Times, emphasized the profound relief brought by Medicare negotiation, particularly evident in the implementation of insulin copay caps for crucial medications. Patient advocates including David Mitchell as well as Judy Aiken, Bob Parant, Lynn Scarfuto, Steven Hadfield, and Doug Lusty represented P4AD at 7 of the 10 Centers for Medicare and Medicaid patient listening sessions, sharing their struggles with high drug prices and countering the lies from pharma shills. These combined efforts epitomized the unwavering dedication of P4ADNOW advocates in dismantling industry resistance and championing the lasting benefits of these pivotal reforms alongside allies.
2. Push For Competition Launch And Building Momentum
Competition in the pharmaceutical landscape is a direct challenge to Big Pharma’s long-protected monopoly, disrupting their firm grip over drug pricing. At the forefront of our organizing and advocacy efforts, this year has been our “Push for Competition to Lower Drug Prices”, headlined by a press conference in July alongside Senator Klobuchar. This push included a 6-figure digital ad campaign, featuring two powerful patient stories from Jacquelineand Lisa, culminating in over 20,000 letters sent and nearly 20,000 calls to Senate offices, echoing the voices of patients demanding legislation to combat pharmaceutical monopolies and prevent patent abuses that keep prices high. In November, along with 60 other organizations, P4AD and AARP sent a letter addressed to Senator Majority Leader Schumer and Senator Minority Leader McConnell, underscoring the urgent need for bipartisan reforms. Furthering this momentum, patient advocates including Lisa of Richmond, Texas, Sue of Crestwood, Kentucky, Pam of Granger, Indiana, Judy of Portland, Maine, and Jacqueline of Cedar Falls, Iowa, took their impassioned pleas to their representatives’ offices in a powerful display of grassroots activism. In other grassroots efforts, patient advocate Bob Parant’s op-ed in the New York Daily News and David Mitchell’s TIME op-ed alongside Tahir Amin of I-MAK emphasized the critical need for legislative action to counter Big Pharma’s monopolistic practices. Further as a result of the recent passage of the Lower Costs, More Transparency bill in the House, there is increased momentum for a comprehensive healthcare package in the Senate this month which presents an opportunity to pass a package of these bipartisan bills.
3. Spanish Language Program Expansion
Through a strategic collaboration with Jamii, we were able to bolster our multilingual outreach efforts to engage new and more diverse communities. This partnership was instrumental in launching a Spanish version of the Medicare Negotiation website and patient advocacy Hub, coinciding with the first anniversary of the Inflation Reduction Act in August 2023. Acknowledging that Latinos, many of whom are Spanish speakers, are disproportionately impacted by high drug prices our goal was to ensure more patients across the country were not only made aware of these new provisions but could more easily understand how they will be able to benefit from them now and into the future. P4AD further expanded its multilingual reach, through releasing Spanish-language content that included Bilingual Organizer Jesse Aguirre’s impactful op-ed in El Planeta and other communications. We introduced 152 new patients to our community who have shared their stories about high drug prices in Spanish.
4. Reports Driving Change
P4AD’s relentless research efforts continued to drive toward critical policy change throughout the year. Our updated “Hidden Hand” report – Hiding in Plain Site’ illuminated the drug industry’s ties to three so-called “patient advocacy groups”: The Haystack Project, No Patient Left Behind, and the Community Oncology Alliance which operate to boost the power and profit of the drug industry.
Meanwhile, keeping pace with the ongoing developments, here’s a snapshot of the latest events in the world of prescription drug pricing.
1. Capping the Cost of Insulin
This week saw another step forward in the ongoing battle for more affordable insulin for millions of Americans. Sanofi, aligning with announcements in 2023 from Eli Lilly and Novo Nordisk, finally put a lid on the monthly out-of-pocket costs for its most popular Lantus insulin, capping it at $35. It’s a stark reminder that claims from major drug companies about their inability to lower prices are false. These corporations have arbitrarily maintained high prices in the US for years, prioritizing profits over people’s lives. Despite a decade of advocacy from insulin activists and increased pressure as a result of the Inflation Reduction Act, this initiative by the Big 3 does offer a new glimmer of hope for those grappling with the outrageous costs of this crucial medication. (Axios, USA Today, The Copper Courier)
2. Importing Rx From Canada
The FDA’s approval of Florida’s plan to import cheaper prescription drugshighlights the pressing issue of exorbitant drug prices in the United States. While this move offers some relief, it’s not a comprehensive solution. Relying solely on state-by-state importation from Canada isn’t feasible as it’s not a sustainable way to meet the nation’s medication needs. The limitations include Canada’s inability to supply the entirety of the U.S. demand and the pharmaceutical industry’s reluctance to supply Canada adequately for further exports to the U.S. It’s clear that we require federal-level solutions to address this issue comprehensively. Expanding Medicare negotiation and implementing reforms to curb drug companies’ patent system exploitation, which stifles competition and maintains high prices, are essential. While the Inflation Reduction Act marked a critical step, more federal actions are necessary. Bipartisan bills in Congress have gained significant public support and offer potential pathways toward achieving widespread and enduring price reductions for all Americans. (FDA, New York Times)
Welcome to the Week in Review.
1. Pharma’s Legal Assault on the Inflation Reduction Act
The pharmaceutical industry’s opposition to the new Medicare drug negotiation program introduced via the Inflation Reduction Act was back in the news this week. The continued legal assault on negotiating lower drug prices for patients reveals a familiar pattern: prioritizing massive profit margins over the affordability of life-saving medications for Americans. Large pharmaceutical corporations are using whatever avenues available to protect their financial interests rather than reduce drug prices for patients. The Department of Justice’s dismissal of these challenges this week highlights the Inflation Reduction Act’s constitutional backing and Congress’s authority to enact measures to address exorbitant drug pricing. Yet, the ongoing legal battles underscore the industry’s persistent efforts to manipulate systems to their benefit and their willingness to do whatever it takes to maintain a monopoly chokehold on medicines priced in the United States. In our commitment to supporting fairer drug pricing, Patients For Affordable Drugs endorsed two amicus briefs this week as part of our ongoing efforts in defense of the Inflation Reduction Act and support of lower drug prices for patients. And in 2024, get ready for an exciting announcement from us about a new patient-centered strategy set to shake up the status quo in favor of lower drug prices for patients across the country! (Inside Health Policy)
2. AbbVie’s Tactics Highlight Need for Pharmaceutical Reforms
AbbVie’s relentless pursuit of market dominance for Humira continues to yield staggering profits at the expense of patients. The company’s efforts to maintain revenue by stifling competition through patent manipulation have drawn intense criticism, highlighting the controversial tactics prevalent among pharmaceutical giants to maintain their monopolies. These practices are emblematic of wider issues in the pharmaceutical industry and underscore the need for reforms aimed at preventing such abuse and fostering a more competitive and fair marketplace. The recent passage of the ‘Lower Costs, More Transparency Act’ in the House reflects increasing momentum toward a comprehensive healthcare package in January, where reforms aimed at tackling patent abuses and fostering competitive markets could be included. This recent op-ed by patient advocate Bob Parant in the New York Daily News similarly urges further action from Senator Schumer on these competition bills. Additionally, our community at Patients For Affordable Drugs is once again ramping up calls and letters into Senate offices, amplifying the push for these competition bills, reflecting a groundswell of support for addressing these critical issues. (Forbes, MedCity News, Politico, New York Daily News)
3. Rising Healthcare Costs and the Push for Affordable Medications
In 2022, retail spending on prescription drugs surged, accounting for about 9% of total healthcare spending and reaching $405.9 billion—an 8.4% increase from 2021, following a 6.8% growth in 2020. The Biden administration has aimed to curb some of these escalating retail drug prices through the reforms in the Inflation Reduction Act, but also through the recent announcement that the administration could break the patents on drugs funded by taxpayer money if their prices prove excessively high, and highlighting agencies have the right to “march-in” if a drug isn’t reasonably available or affordable—a critical detail and an extra too use in the battle for fair drug pricing. (Idaho Capitol Sun, White House Fact Sheet)
Patients For Affordable Drugs will be closed through January 1st. Wishing you peaceful and restorative holidays and we look forward to sharing some exciting new updates in the New Year!
Welcome to the Week in Review.
1. Taking Aim At Soaring Drug Prices
Yesterday, President Biden visited the National Institutes of Health, to announce that dozens of pharmaceutical companies will be required to pay rebates to Medicare for excessive price hikes on prescription drugs used by over 750,000 seniors annually. In the last quarter of 2023 alone, 48 Medicare Part B drugs surged in prices faster than the rate of inflation, leading to potential rebates under the Inflation Reduction Act. President Biden’s initiative aims to curb these exorbitant price hikes, ensuring companies repay Medicare, saving seniors between $1 and $2,786 per dose on these medications. Patients For Affordable Drugs (P4AD)’s President and Founder, David Mitchell, introduced President Biden at the event. As a patient on Medicare living with multiple myeloma, David shared his personal journey with high drug prices and celebrated the significant strides made in drug pricing reforms as a result of the Inflation Reduction Act. David is one of millions of patients whose drugs will cost him less from 2026 since Eliquis, one of his medications, is one of the first 10 being negotiated by Medicare. (The Hill, Reuters, Fortune, YouTube)
2. Enforcing Fair Drug Pricing
The White House and Health and Human Services (HHS) have also made significant progress this week towards ensuring Americans pay fairer prices for medical products they helped pay to invent through their taxpayer dollars by making fair pricing a new standard part of negotiations. The Administration for Strategic Preparedness and Response (ASPR) has integrated fair pricing criteria into recent contract agreements. Notably, contracts with organizations like Regeneron, CastleVax, Codagenix, and Gritstone Bio, as part of Project NextGen, outline provisions that require their commercialized products to be priced in the U.S. at levels equivalent to or lower than those in comparable global markets. This initiative aims to protect people from disproportionately high drug costs, ensuring that innovations backed by taxpayer dollars are affordable and accessible. (White House Fact Sheet, MedPage Today)
3. Setting the Stage For Senate Health Care Package
The House of Representatives passed the “Lower Costs, More Transparency Act” on Monday night, a pivotal step toward addressing high drug prices. The firm bipartisan passage of this legislation increases the momentum for a comprehensive healthcare package in the Senate in January and presents an opportunity to pass bills aimed at lowering drug prices by addressing patent abuses and other anti-competitive tactics employed by drug companies to delay generic and biosimilar competition. This overwhelmingly bipartisan effort paves the way for a bipartisan end of year package that can lower prescription drug prices for all patients. (MedCity News, Pink Sheet)
BONUS: Not all patient groups are what they seem! This new report from Public Citizen shows the power of Pharma dollars at work and how they leverage patient groups to do their bidding including during the fight to pass the drug price reforms in the Inflation Reduction Act. Their actions keep prices high for patients. From the report; “if a patient advocacy group expresses doubts about a drug-pricing bill, that may have a greater impact. If a local advocacy organization publishes an op-ed in the member’s local paper, that will no doubt get a member’s attention. If a new controversial drug to treat a disease gets the ringing endorsement of the patient group representing those inflicted with the disease, that could carry great weight”. Bottom line: If you’re in bed with pharma, you’re not doing enough on drug pricing. To understand the influence of Pharma on a patient group see P4AD’s The Hidden Hand and the 2023 Update Hiding in Plain Sight. (KFF Health News)
Have a great weekend!
As we approach the end of 2023, we wanted to highlight the historic drug price reforms in the Inflation Reduction Act delivering relief to millions of patients on Medicare.
Medicare negotiation is critical for patients who have been forced to pay exorbitant prices for some of the most widely-used, expensive medications. Bristol Myers Squibb (BMS) blood thinner Eliquis, one of the drugs selected for the first round of Medicare negotiations, has been priced out of reach for many patients since hitting the market in 2013. Since there are no generic competitors to Eliquis, BMS is able to dictate the price to patients and taxpayers and extract increasing amounts of profit without any meaningful improvement to the drug. During periods of market exclusivity, “drug companies use their market power to set prices well above the costs of production and distribution,” said Richard G Frank, a professor emeritus of health economics at Harvard Medical School. Christen Linke Young, White House Domestic Policy Council’s deputy assistant to the president for health and veterans affairs, called out BMS at a STAT event for fending off generic competition to Eliquis and as a result “earned themselves the privilege of getting paid $16 billion by Medicare last year alone.” This long history of unjustified price hikes has hurt patients who depend on this life-saving medication. Thankfully, a lower negotiated price for Eliquis will deliver relief to millions of patients on Medicare starting in 2026. (Philadelphia Inquirer, STAT)
2. Patent Abuse Watch
In the latest Big Pharma shenanigans, AbbVie is suing potential competitors to its blockbuster drug Rinvoq, alleging that generic makers are infringing on more than 30 patents. This is a classic tactic in Abbvie’s patent abuse playbook, which also propelled its blockbuster drug Humira to earn billions of dollars of profit by obtaining dozens of unmerited patents and charging patients unjustifiably high prices. This latest example of patent abuse underscores the urgent need for reforms to our patent and regulatory systems. Johnson and Johnson’s (J&J) is attempting to exploit our patent system in a similar fashion by reaching settlements with generic makers to delay biosimilar versions of its psoriasis and irritable bowel drug Stelara. As a reminder, every additional day of market exclusivity for Stelara in the U.S. drives almost 18 million in revenue for J&J. Patients deserve lower priced competition to come to market and deliver relief from the unfettered pricing power held by profit-hungry brand name drug corporations. (Fierce Pharma, Biospace)
3. States Push For Lower Insulin Prices
There’s growing momentum within state and local governments to ease the financial burden of expensive insulin medications. Lawsuits have been filed in Utah, Arizona, New York, Virginia, and Maryland alleging that big insulin makers — Eli Lilly, Sanofi, and Novo Nordisk — worked in tandem with pharmacy benefit managers (PBMs) to price insulin out of reach for many patients who depend on this life-saving medication. These profit schemes hurt patients–too many of whom have been forced to ration their insulin supply or completely go without because of its high price tag. Taxpayers are also directly affected by the enormous costs placed on the U.S. healthcare system. The $35 monthly insulin copay cap for patients is just the start — we will keep fighting until insulin is affordable and accessible to everyone! — (STAT)
BONUS: P4ADNow salutes Senators Dick Durbin and Chuck Grassley for introducing bipartisan legislation to increase price transparency in direct to consumer advertisements on prescription drugs. Thank you Senators for prioritizing patients over the interests of Big Pharma!
