This Week in Drug Pricing: Pharma Faces Setback in Legal Battles To Stop Medicare Negotiation, Drug Price Reforms Enjoy Broad Support Despite Low Awareness, and The Looming Cost of Inhalers.
Welcome to the Week in Review.
1. Pharma Faces Setback in Legal Battles To Stop Medicare Negotiation Big Pharma’s bid to obstruct the implementation of the Medicare Negotiation program suffered a significant setback on Monday as a federal judge ruled against Bristol Myers Squibb and Janssen Pharmaceuticals in their lawsuits challenging the constitutionality of the program – marking the fourth time a judge has ruled against the drug industry and in favor of patients. “There is no doubt that this ruling is a win for patients. It eviscerates the strongest arguments in Big Pharma’s coordinated multi-million dollar attack on Medicare negotiation,” shared P4AD’s Merith Basey following the decision. Since the ruling, both drug companies have indicated that they will appeal the ruling, despite the judge’s unequivocal rejection of their central arguments. On the same day, AstraZeneca filed a separate notice to appeal a judge’s March decision rejecting the corporation’s lawsuit challenging the program. On Wednesday, the Pharmaceutical Research and Manufacturers of America (PhRMA), alongside the Global Colon Cancer Association and the National Infusion Center Association (NICA), presented oral arguments in their appeal in Texas. Currently the scoreboard reads patients: 4, Big Pharma: 0. — (Reuters, Patients For Affordable Drugs, Fierce Pharma, Patients For Affordable Drugs, CNN)
2. Drug Price Reforms Enjoy Broad Support Despite Low Awareness A Navigator Research poll released this week revealed robust bipartisan support for the drug price reforms in the Inflation Reduction Act, with 71 percent of voters backing the historic law. Across the political spectrum, a majority of voters strongly support key provisions benefiting patients on Medicare: 87 percent support capping insulin out-of-pocket costs at $35 a month, 83 percent support penalizing drug companies that raise prices faster than the rate of inflation, and 74 percent support the $2,000 cap on out-of-pocket costs taking effect next year. Despite widespread support, less than a third of respondents report awareness about these reforms, highlighting the need for broader education efforts. In a Washington Post column this week, Leana S. Wen, a professor at George Washington University, outlined the key provisions of the drug price law and emphasized the urgent need they seek to address: one in five older adults forgo their prescriptions due to cost. — (Navigator Research, The Washington Post)
3. The Looming Cost of Inhalers GlaxoSmithKline (GSK) is facing criticism over its decision to discontinue its popular Flovent asthma inhaler, one of the most commonly prescribed inhalers for children, and replace it with a costly generic inhaler not covered by many insurers — forcing thousands of families to pay its full list price ranging from $150 to $250 per month. Given that asthma is more common and often more severe for Black, Latino, and low-income children, it is these families who are disproportionately harmed when already high inhaler prices increase. Exploiting loopholes in the patent system, these companies routinely withdraw effective treatments from the market and force patients to transition to newer, more expensive versions. This deceptive practice of “product hopping” is one of the drug industry’s favorite tactics. Fortunately, several bipartisan bills in Congress, supported by P4ADNOW, are poised to address such tactics and bring down costs for patients. — (The Washington Post, CNN, US News)
BONUS: New data released by the Department of Health and Human Services (HHS) showed that more than 10 million people on Medicare received a free vaccine in 2023 thanks to the Inflation Reduction Act, a significant increase from 2021 when just 3.4 million people received a vaccine covered under Medicare.
Patients for Affordable Drugs NOW, the C4 arm of P4AD, is the only national, bipartisan patient advocacy organization focused exclusively on policies to lower drug prices. We help educate and mobilize patients in support of legislation to fix our broken system. P4ADNOW does not accept funding from organizations that profit from the development and distribution of drugs.
Welcome to the Week in Review.
1. Drug Industry’s Lobbying Surge New lobbying disclosures show that Big Pharma increased their lobbying spending during the first three months of 2024 compared to the same period last year, to stop reforms that would lower drug prices. Pharmaceutical Research and Manufacturers of America (PhRMA), the top industry trade association which filed a lawsuit alongside the National Infusion Center Association and the Global Colon Cancer Association to block the implementation of Medicare negotiation, also increased their lobbying spending by 20 percent in the first quarter of 2024, to $9.6 million. Novartis, the drug manufacturer suing to stop Medicare from negotiating the price of its heart failure drug Entresto, boosted their lobbying spending by 44 percent during the same period. Recent quarterly earnings show that three other drug corporations filing lawsuits to block implementation of the Medicare negotiation program — AstraZeneca, Bristol Myers Squibb, and Merck — reported $40.33 billion in combined revenue last quarter. Despite the drug industry’s claims that the historic drug price law would stifle their revenue, it appears that pharma has plenty of money to double down on lobbying efforts to continue to protect their unfettered pricing power. — (Politico, Axios, Fierce Pharma, Reuters, Accountable.US)
2. Court Watch Next week could bring new twists in Big Pharma’s legal efforts to stop the implementation of Medicare negotiation. AstraZeneca has until Tuesday to file a notice of appeal in its case, after a March ruling that rejected the company’s attempt to overturn Medicare negotiation. Then on Wednesday, PhRMA, the Global Colon Cancer Association, and the National Infusion Center Association will present oral arguments as they appeal the dismissal of their earlier lawsuit challenging Medicare’s negotiation authority. Thus far, judges have ruled three times in favor of patients over the pharmaceutical industry, and we continue to watch closely as the industry’s multi-million-dollar assault on the Inflation Reduction Act wages on. P4AD has launched the “US v Pharma” campaign (in English and Spanish), to mobilize patients and allies to defend this hard-won victory against Big Pharma’s relentless attacks. — (Endpoints News, Georgetown University, BioSpace, FightPharma.org, LuchaContraFarma.org)
BONUS: The Senate Health, Education, Labor, and Pensions (HELP) Committee launched an investigation this week into the high list prices of Novo Nordisk’s drugs for type 2 diabetes and weight loss, Ozempic and Wegovy, which cost $969 and $1,349 for a month’s supply respectively. Groundbreaking treatments coming to market must be fairly priced in order to maximize public health and lessen the financial burden of essential medicines for patients.
Welcome to the Week in Review.
1. Companies Opposing Medicare Negotiation Rake In Huge Profits Leading drug companies are going to great lengths to protect their profits at the expense of patients. Despite being the top pharmaceutical earner with $85.16 billion in 2023 revenue, Johnson & Johnson (J&J) is suing to block Medicare’s new price negotiating authority. Three of J&J’s medications – Xarelto, Imbruvica, and Stelara – are among the first 10 drugs subject to these negotiations. And the human impact of Big Pharma’s efforts is enormous. Medicare negotiation is crucial for P4AD patient advocate Lynn Scarfuto, who takes Imbruvica to treat her cancer, and which has a list price of $17,000 per month. After negotiation, the net price for a 30-day supply of Imbruvica could be reduced to an estimated $6,548. Merck, which ranked close behind J&J with $60.1 billion in 2023 revenue, spearheaded opposition to the program aimed at lowering costs for people like Lynn, filing the first lawsuit against Medicare negotiation last summer. Merck’s diabetes drug Januvia, also selected for negotiation, currently carries a list price of $573 per month. Rather than accept reforms that are expected to save patients on Medicare hundreds of dollars per month, Big Pharma is forcing patients to make impossible choices between their health and financial security. — (Fierce Pharma, FightPharma.org, Center For American Progress, Fierce Pharma)
2. Insulin Maker’s Bait and Switch The insulin industry’s exploitative practices are once again on display in Novo Nordisk’s latest shady maneuver. As one of the “big three” manufacturers controlling 90 percent of the global insulin supply, Novo Nordisk faces intense scrutiny for its pricing practices. Last year, in a move that at face value signaled progress to some, the company announced plans to reduce the list prices of several of its insulin products beginning January 1, 2024. This included lowering the price of Levemir by 65 percent, bringing it in line with the $35 insulin copay cap established in the Inflation Reduction Act. This move followed a similar commitment by competitor Eli Lilly and came just days before Sanofi’s announcement. But, before the price cut took effect, Novo Nordisk announced that Levimir would be discontinued. This decision left patients like Sara in Ohio scrambling to find an alternative to the drug she had relied on for years to manage her diabetes. Senators Shaheen, Warnock, and Warren were quick to condemn Novo Nordisk’s actions and demanded clarification on whether patients would have access to affordable long-acting insulin alternatives or if a biosimilar version of Levemir was planned. The Senators’ letter highlighted the insulin industry’s long history of exploiting patients through exorbitant pricing and seemingly temporary promises of relief. — (USA Today, CNN, NBC News, Axios, Reuters, Fierce Pharma, Office of Senator Shaheen)
PATIENT SPOTLIGHT: In 2023,patient advocate Ginny Boynton, a mother of two, who lives with Lambert-Eaton myasthenic syndrome, faced out-of-pocket costs totaling over $30,000 for her essential medications. But this year, thanks to the Inflation Reduction Act, Ginny is celebrating. Due to the phasing in of the new cap on out-of-pocket costs at about $3,500 if you reach the catastrophic coverage phase for drugs covered by Medicare Part D, her costs have dramatically been reduced. Next year, Ginny can look forward to even greater savings when the $2,000 out-of-pocket cap is implemented.
Welcome to the Week in Review.
1. Facts VS Pharma Fear Mongering
This year’s record investment in biotech companies directly contradicts the drug industry’s claims that the Inflation Reduction Act would stifle innovation and drug development. Data from HSBC shows the industry raised a staggering $6.8 billion from venture-capital investments in the first three months of 2024 — one of its best fundraising quarters since early 2022. Recent actions from one company in particular, Vertex Pharmaceuticals, exemplify the drug industry’s primary focus on padding their pockets. Vertex announced plans on Wednesday to buy Alpine Immune Sciences, a biotech company focused on immunology treatments, for a staggering $4.9 billion — one of the biggest acquisitions this year. Furthermore, Vertex CEO Reshma Kewalramani made headlines due to a massive compensation boost, which jumped 30 percent to $20.6 million in 2023. It’s evident that Vertex is flush with cash, in part due to the company’s cystic fibrosis treatment Trikafta, which carries an annual list price, upwards of $300,000, that pushes it far out of reach for patients in the U.S. and around the world. This weekend in Los Angeles, California, health advocacy groups will protest Vertex’s unconscionable actions and hold the company accountable for raking in obscene profits while patients struggle to afford their drugs. We see through their lies and will continue to call out Big Pharma’s greed and hypocrisy. — (STAT, Yahoo Finance, Quartz, Fierce Pharma)
2. Becerra’s National Latino Health Tour
This week, Department of Health and Human Services (HHS) Secretary Xavier Becerra finished the last leg of his week-long National Latino Health Tour to discuss improving access to affordable health care for Latino communities. Secretary Becerra met with patients, community health leaders, and legislators acrosssixstates to spread the word about the historic Inflation Reduction Act. Ensuring that Latinos and communities of color are made aware of the benefits of the new drug price reforms is critical given that Latinos experience higher rates of certain health conditions, like hypertension and diabetes, and are nearly two times more likely to not fill a prescription due to cost compared with their white peers. “It’s a relief that people are going to be able to afford what is a life saving medication, especially in a very heavily Latino district like the 8th District,” shared Rep. Yadira Caraveo at a roundtable with Secretary Becerra in regards to the $35 monthly insulin copay cap. At a fire-side chat with Becerra in California, Rep. Pete Aguilar emphasized how the law’s provision eliminating cost sharing for vaccines is currently helping the 1.2 million Latinos in the state who are on Medicare and celebrated the anticipated savings for patients in coming years. We still have a long road ahead to make sure that everyone knows about the transformational benefits within the Inflation Reduction Act which are increasing access to the medications patients need. — (Philanthropy News Digest, KOB, ASPE, Florida Phoenix, CAP, Commerce City Sentinel Express, IE Community News, SAC Health)
BONUS: Chimeric antigen receptor T-cell therapy (CAR-T), a groundbreaking type of cancer immunotherapy, is currently priced upwards of $350,000 for patients in the U.S. Last month, Fiocruz, a research foundation, and Caring Cross, a nonprofit working to develop advanced medicines, announced local efforts in Brazil to produce CAR-T treatments. The cost? Likely one tenth of the U.S. price, at around $35,000 per dose. Given the many cell and gene therapies in the pipeline here in the United States, it’s imperative that we find a way to tackle launch prices so that people who need these revolutionary drugs can access them at prices they can afford.
Welcome to the Week in Review.
1. Patient Advocate Introduces POTUS
Kris Garcia, a husband, father of four, and a P4AD patient advocate from Colorado introduced the President at the White House on Wednesday during an event hosted by President Biden and Senator Sanders focused on their efforts to lower the out-of-pocket cost of inhalers. This is a topic deeply personal to Kris who lives with chronic asthma, multiple bleeding disorders, and severe allergies. To manage his health, Kris relies on several expensive medications, including inhalers, and shared that the treatments he needs just to stay alive cost $800 a month, even after insurance coverage. The financial strain of these essential medicines has forced him to work extra shifts and has led him to ration doses, or forgo some of his prescribed treatments altogether. However, pressure from advocates and lawmakers has ledthree of the four largest inhaler manufacturers to commit to capping the out-of-pocket cost of their inhalers at $35 a month. This news, coupled with some of the drug price reforms in the Inflation Reduction Act, represents a glimmer of hope for Kris and millions of patients like him who will soon, as Kris put it, “spend less time worrying about surviving”, and more time living their lives. — (ABC 27, P4AD, P4AD, The Hill, The Washington Post, CBS News, Common Dreams)
Kris Garcia following the event focused on lowering inhaler costs at The White House
2. P4AD Launches New Tool to Defend Medicare Negotiations
As part of our ongoing campaign, US v. Pharma; Fighting to Protect Medicare Negotiation, P4AD unveiled a new tool: FightPharma.org. The website serves as a dedicated platform for our campaign to counter Big Pharma’s legal efforts to stop the implementation of Medicare negotiation. Currently, pharmaceutical corporations and their allies have filed nine lawsuits and additional appeals in an attempt to halt the program. Fightpharma.org will be updated with information on the status of these lawsuits and will provide opportunities for patients and advocates to take action, ensuring that the courts hear the lived experiences of those harmed or hurting from high drug prices. Se habla español? Stay tuned for a Spanish site coming in the next couple of weeks!
3. Lowering Drug Costs For Women
Women experience disproportionately higher rates of certain health conditions and also encounter higher health care costs relative to men. This financial burden is further exacerbated for women of color and women who have low incomes. A recent analysis from the Department of Health and Human Services’ (HHS) Office of the Assistant Secretary for Planning and Evaluation (ASPE) illuminates how the Inflation Reduction Act is delivering much-needed relief to some of the nearly 30 million women who have Medicare Part D coverage. According to the findings, in 2020, approximately 733,000 women on Medicare would have experienced considerable relief had the $35 monthly insulin copay cap been in effect. Additionally, in 2021, around two million women would have benefited from the provision eliminating cost-sharing for vaccines. Looking ahead, the analysis predicts that the $2,000 out-of-pocket cap, effective in 2025, along with other provisions in the drug price law, will reduce women’s Medicare out-of-pocket expenses by an average of 28 percent, saving them around $128 per year on average. These significant insights were highlighted at an event hosted by HHS this Tuesday, attended by P4AD and numerous allies, all eager to celebrate the transformative impact of the Inflation Reduction Act on patients grappling with exorbitant drug prices, particularly those who have been historically disenfranchised. — (Managed Healthcare Executive, Center For American Progress, ASPE, Mirage News, P4AD)
PHARMA FACT CHECK: The Centers for Medicare and Medicaid Services (CMS) remains in negotiation with manufacturers of the initial 10 drugs selected for negotiations, having rejected their latest counter offers. Contrary to the assertions of Big Pharma and its allies that Medicare negotiation constitutes “price-setting,” recent actions by both drug companies and CMS, involving offers and counteroffers, debunk this narrative and underscore a genuine negotiation process.
Welcome to the Week in Review.
1. Curbing Drug Price Hikes
On Tuesday, the Department of Health & Human Services (HHS) announced a list of 41 drugs available through Medicare Part B will have a lower coinsurance rate from April 1 – June 30, 2024, should drug companies raise prices faster than the rate of inflation. This measure, established through the Inflation Reduction Act, aims to hold drug companies accountable for excessive drug price hikes by requiring them to pay rebates to Medicare. During this period, some of the 763,700 people on Medicare who take one or more of these 41 essential medicines could save between $1 and $3,575 per average dose. According to an analysis by AARP, retail prices for 943 commonly used drugs increased faster than the inflation rate every year from 2006 until 2020. Until the passage of the Inflation Reduction Act, drug companies had been able to raise prices at will year after year. This initiative cracks down on aggressive drug price gouging and stands to generate substantial savings for patients and taxpayers. — (HHS, Healthcare Finance News, Patients For Affordable Drugs Now, AARP)
2. Cracking Down On Inhaler Patents
Despite announcements from major inhaler companies to cap out-of-pocket costs and reduce the list prices of some of their products, inhaler manufacturer, Teva, has yet to follow suit. This week, the Federal Trade Commission (FTC) filed an amicus brief in Teva’s lawsuit against a competitor, contending that Teva “improperly listed” patents on its asthma inhaler ProAir HFA. Teva used these patents to prevent Amneal Pharmaceuticals from obtaining approval for a generic version of Teva’s inhaler, therefore stalling an affordable alternative for patients. In November 2023, Teva and other drug companies were challenged by the FTC to remove improperly listed patents on their products. — (Reuters, VeryWell Health, Fierce Pharma, FTC)
3. Big Pharma’s Big Bag
Even though big drug companies claim that the Inflation Reduction Act would dramatically impact pharma research and development, these corporations continue to allocate billions toward CEO compensation. It was recently revealed that CEOs from some of the largest pharmaceutical corporations have seen substantial pay increases in 2023 including Eli Lilly’s CEO David Ricks whose compensation rose 24 percent to $26.6 million and Johnson & Johnson’s CEO Joaquin Duato who has received a staggering $28.4 million. Additionally, the industry has also seen a surge in biotech acquisitions and record-high mergers, exemplified by Novo Nordisk and AbbVie announcing multimillion-dollar deals just this week. Despite patients already benefiting from the law’s drug price reforms, with further cost savings anticipated as other provisions phase-in, it’s evident that the pharmaceutical industry is prioritizing profit maximization over patients’ well-being, driven solely by greed and a relentless pursuit of maintaining exorbitant prices. — (Public Citizen, Fierce Pharma, The Wall Street Journal, Reuters, Pharmaceutical Technology, Patients For Affordable Drugs)
BONUS: According to a new study published in JAMA, blockbuster diabetes, heart disease, and weight loss drug, Ozempic, could be manufactured for less than $5 monthly, and still be profitable, despite carrying a monthly list price of nearly $1,000. We urgently need legislative action to rein in these exorbitant prices. Drugs don’t work if people can’t afford them.
Follow our social channels for an exciting announcement next week in our ongoing fight against Big Pharma and efforts to defend the hard-fought reforms already lowering drug prices!
Have a great weekend!
Welcome to the Week in Review.
1. Big Pharma Caught In Contradiction
Big drug companies continue to drum up bold lies regarding the impact of the drug price reforms in the Inflation Reduction Act (IRA). This is despite the overwhelming evidence pointing towards the law as an important conduit for delivering financial relief to patients, while also maintaining critical levels of investment in innovation. Drug company executives, who are beholden to investors, recently stated that Medicare drug price negotiations were “encouraging” and would have “modest impact.” At the same time, several pharma companies have launched aggressive lawsuits attempting to dismantle Medicare negotiations, arguing that the program will deter investments and hurt revenue. In The Hill, P4AD’s Merith Basey calledout the hypocrisy of drug industry executives and allies who are talking out of both sides of their mouths: “We know that the impact of the IRA is not going to affect their bottom line in the way that they like to cry poor every time anyone tries to touch anything that gets in the way of their monopoly power.” Lower negotiated drug prices will not make a dent in Big Pharma’s huge profit margins, while delivering transformative relief to patients. “A few hundred dollars is a massive difference for one individual,” Merith continued. “Again, this is about ordinary people.” It’s evident that investments in drug development are not slowing down. So far this year, 21 biotech startups have received hundreds of millions of dollars in investments from venture capitalists. This juggling act displays Big Pharma’s lack of credibility and demonstrates their intention as clear as day: preserving monopoly pricing power at the expense of patients. — (Endpoints, Endpoints, The Hill, The Hill, Endpoints)
2. The Growing Impact Of The Inflation Reduction Act
Patients continue to reap the benefits of the groundbreaking drug price reforms in the Inflation Reduction Act. The number of vaccines administered to adults in the first nine months of 2023 exceeded pre-pandemic levels, largely thanks to the new vaccine provision introduced last year, which provides coverage without patient cost-sharing of certain recommended vaccines for people on Medicare Part D. “This underscores the importance of preventive health care and emphasizes the overall benefits of the Inflation Reduction Act in guaranteeing that Medicare patients receive accessible, affordable high-quality care,” the Department of Health and Human Services (HHS) spokesperson LaTanya Marble told Politico. The drug price reforms in the Inflation Reduction Act are directly addressing the urgent needs of patients living in the U.S. who pay on average nearly three times more for their medications than residents in other peer nations. — (Politico, Commonwealth Fund)
3. The Power of Public Pressure
Earlier this week, AstraZeneca and GlaxoSmithKline (GSK) responded to increased pressure and scrutiny from patients and lawmakers by announcing plans to cap out-of-pocket costs for some of their inhaler products at $35 a month. This move follows in the footsteps of Boehringer Ingelheim, which made a similar commitment earlier this month. The spotlight has been on the egregious price hikes of inhaler medications over the past year, prompting both the Senate Health, Education, Labor, and Pension (HELP) Committee and Federal Trade Commission (FTC) to call out the four major inhaler companies for patent abuse tactics that drive up prices and delay lower-cost competition. For example, AstraZeneca’s Breztri Aerosphere inhaler costs $645 in the U.S. compared to just $49 in the United Kingdom (U.K.) and GSK’s Advair HFA inhaler costs $319 in the U.S., while it is sold for only $26 in the U.K. These decisions by drugmakers to cap costs mark a significant milestone for some patients who rely on these medicines to manage conditions like asthma and chronic obstructive pulmonary disease. Jennifer, a patient advocate in Colorado, wrote to us about her experience with breathing complications, which led her to a prescription for an inhaler costing $495. “How could I pay for that regularly plus my mortgage, utilities, car insurance, gas to get to work, and the premium on my health insurance?” Her story is one of many shared experiences we’ve heard from patients who are forced to go without their inhaler medications due to cost. We urge Teva, the last of the four major inhaler companies, to immediately follow suit and reduce copay costs for patients. — (The Hill, Reuters, Common Dreams, CNN, FTC)
PRICE WATCH: Lenmeldy, a new life-saving gene therapy for the genetic disorder metachromatic leukodystrophy (MLD) will be the most expensive drug in the world at $4.25 million. Innovation is worthless if patients can’t afford it — we urgently need to address the high launch prices of transformative cell and gene therapies coming to market.
Have a great weekend!
Welcome to the Week in Review.
1. Biden Promises to Expand The Inflation Reduction Act
Key Senators remain committed to advancing bipartisan bills aimed at cracking down on pharmacy benefit managers (PBMs) and their opaque tactics, which drive up costs for patients and taxpayers. Senate Finance Committee Chair Ron Wyden and Ranking Member Mike Crapo, joined by advocates, held a press conference yesterday to encourage legislative action that would hold the secretive middlemen accountable. PBMs negotiate discounts, or rebates, with drug companies in exchange for preferable placement on formularies. However, the specific terms of these rebate contracts, including the amount of the discounts and how they benefit patients, are not disclosed to the public. As a result, it’s unclear whether PBMs are using their power to ensure patients are getting the best drug at the best price. Prior to the press conference, the Senators penned a letter to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, and members of the Senate Finance Committee, reaffirming their commitment to increase transparency and accountability in the PBM industry during this Congress. It’s time to pass reforms to ensure PBMs prioritize serving patients and consumers over padding their bottom line. — (Senate Finance Committee, Axios, Fierce Healthcare, DCNewsNowVimeo, Center for American Progress, Senate Finance Committee)
2. Exposing Big Pharma Lies
Despite warnings from Big Pharma suggesting the drug price reforms in the Inflation Reduction Act would stifle research and development (R&D) efforts and impede profits, recent data presents a starkly different picture. Contrary to the narrative propagated by drug companies and their trade associations, the industry is investing in R&D at record levels. Top drug companies have spent $153 billion on R&D, and mergers and acquisitions areincreasing at a steady pace. Additionally, costly advertising slots for major TV entertainment events this year, like the Super Bowl and The Oscars, weredominated by drug industry behemoths Pfizer and AbbVie. A report from Protect Our Care showed that last year alone, 16 of the largest drug companies reported $684 billion in earnings, a shocking figure that reflects the absurdly high prices set by drug makers. It’s glaringly apparent that Big Pharma is swimming in profits, all while patients struggle to afford essential medications. — (Endpoints, STAT News, Wall Street Journal, Axios, Fierce Pharma, Protect Our Care, Accountable.US)
3. Medicare Negotiation Puts Patients Over Profit
Big Pharma is marshaling its vast resources toward stopping the implementation of Medicare negotiations, one of the most popular and transformative drug price reforms in the Inflation Reduction Act. Kelly Bagby, Vice President at AARP Foundation Litigation, succinctly explained the objectives behind the various lawsuits pharmaceutical corporations have filed: “They want to make sure their historical profitability is maintained, and not changed, while at the same time trying to delay everything.” To date, however, judges in three district courts have sided with the Biden administration, and last week, oral arguments were presented in four cases brought by big drug companies, during which, the judge expressedskepticism that anything other than maintaining their bottom line motivated their challenges to Medicare negotiation. “All of the momentum is clearly on the side of the government at this point, and not on the side of some of these other manufacturers,” Theresa Carnegie, a health care attorney with Mintz Levin, told CNBC. — (P4ADNow, The Washington Post, FiercePharma, Bloomberg Law, CNBC, Forbes, STAT News, CNBC)
BONUS: A new study from Bentley University shows that the National Institutes of Health (NIH) invested $11.7 billion on research leading to the approval of the first 10 drugs up for Medicare negotiation. Lower negotiated drug prices will help ensure patients and taxpayers get a better deal on these widely-used, high-cost medications. We deserve a fair return on the drugs taxpayers paid to invent!
