Bernie Sanders vs Big Pharma - the latest on drug price negotiations

In a hearing in front of the US Senate, three of the biggest pharmaceutical companies in America are challenged over exorbitant prescription drug prices, with Sanders claiming their actions are limiting the population's access to affordable healthcare. 

After the price negotiations between the US Government Medicare branch and US-based pharma companies resulted in the first 10 drugs chosen for price capping, and the parameters for this was decided, there has been considerable uproar from the pharmaceutical industry. 

In the hearing, companies have been given the floor to challenge the Inflation Reduction Act protocols, inputted by the Biden Administration. Three of the biggest pharmaceutical companies in the world have come to testify at the hearing: Johnson & Johnson CEO Joaquin Duato, Merck CEO Robert Davis, and Bristol Myers Squibb CEO Chris Boerner all took the stand to face a grilling from the Senate. 

Senator Bernie Sanders published a report earlier this week demonising the three pharma giants for marking up their prescription drugs to frankly prohibitive prices, making them inaccessible to a large proportion of Americans. 

The main quarrel that Sanders had with the companies is that they charge a shockingly high price for drugs in the US compared to what they charge in other countries, hence calling these particular plaintiffs to the hearing.
Sanders quotes the price differences as follows: 

•    Bristol Myers Squibb charges an annual list price of US$7,100 for Eliquis in the US, compared to around US$900 in Canada and US$650 in France
•    J&J’s Stelara, for the treatment of Crohn’s disease, is US$79,000 in North America, but US$16,000 in the UK
•    Merck’s Januvia is approximately US$6,000 in the US compared to US$900 in Canada and US$200 in France.
Duato, Davis, and Boerner defended the list prices, stating that the US drugs carry more benefits to patients by being available on the market earlier compared to these other countries. 

"This is in stark contrast to many systems outside the United States, which while they may deliver lower prices, carry an often overlooked trade off that patients often wait longer for new medicines," stated Boerner.

The executives also cited the impact the price negotiations would have on innovation in the field, by pointing out that if they didn’t gain revenue from their marketable prescription medications, they would not be able to reinvest in drug discovery and development for new medicines. As these companies are main drivers of progression in drug discovery, such as with J&J's Innovative Medicine branch, and large investments into the start-up and biotech space, the impact on furthering the development of this area of medicine could be huge. 

Sources: 

NBC News. Pharma CEOs grilled by senators over sky-high drug prices. [Date accessed 12/02/2024] www.nbcnews.com/health/health-news/pharma-ceos-grilled-senators-sky-high-drug-prices-rcna137993

Forbes. Pharma CEOs Will Testify Today Over Prescription Drug Prices: Here’s What To Watch For. [Date accessed 12/02/2024] www.forbes.com/sites/tylerroush/2024/02/08/pharma-ceos-will-testify-today-over-prescription-drug-prices-heres-what-to-watch-for/?sh=efdb2d93d7b9

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