For nearly 3 years a dedicated team of staff on @OversightDems has been investigating Big Pharmaโs pricing and business practices.
Today we're releasing our final report. Everything you need to know about how Big Pharma abuses our system for profit at the expense of patients๐
The companies we investigated raised prices 250+ times on the 12 drugs examined during the time they've marketed them.
Those drugs are now priced at a median of almost 500% โฌ๏ธ than when they came to market.
Mallinckrodtโs drug H.P. Acthar is ๐ญ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ%โฌ๏ธTHAN AT LAUNCH 2/
Net pricesโprices after accounting for rebates and other discountsโof nearly all of the drugs โฌ๏ธ year over year.
This data, which hasn't been public before, undermines Big Pharma's claims that price increases are primarily due to, and offset by, rebates and discounts. 3/
Price increases = $$$ for Big Pharma.
The 10 companies generated $38.5B in U.S. net revenues from the sales of just 12 drugs in 2019 alone.
We found evidence that execs made pricing decisions to meet revenue targets and earnings goals, not for research and development. 4/ https://t.co/c9JmBjItAh
Why is this important?
At least 2 companies, would've missed revenue targets and execs wouldn't have gotten bonuses... had they notโฌ๏ธprices.
@OversightDems found the fmr Celgene CEO received $500K+ in bonuses in 2016&17 solely because of priceโฌ๏ธfor cancer drug Revlimid. 6/
We also obtained non-public pricing data revealing that taxpayers could have saved more than $25B over 5 years for just 7 drugs-if private Medicare Part D plans received the same discounts as other federal health programs that can negotiate, according to our analysis.7/ https://t.co/wBY05UqU5t
Docs show several companies targeted Medicare to boost revenues. An internal Novo Nordisk slide deck emphasized, โPart D is the most profitable market for the Novo Nordisk insulin portfolio.โ 8/
Evidence shows that companies use patent protections and market exclusivities granted by FDA to suppress generic competition and keep prices high.
Just look at this chart ๐
A shameful abuse of the system. 9/ https://t.co/3s1tuZV8Bw
Every company engaged in 1 or more strategies to suppress competition from generics or biosimilars. 10/
What does this look like? Contracting and marketing strategies like: 11/ https://t.co/LkXd25rIKW
We also uncovered new evidence of โshadow pricing,โ where would-be competitors follow each otherโs price increases. Internal docs show that the 3 largest insulin makers raised prices in lockstep to maintain โpricing parity.โ 12/
Again, just look at the charts ๐ https://t.co/1PYCNBkDex
So how does Big Pharma respond to this criticism?
They point to the generosity of their patient assistance programs.
BUT, new evidence shows that companies emphasized the significant ROI from these programs in the form of increased sales.
Big Pharma, "help you, help me." 13/
What's more, companiesโ investments in R&D are far outpaced by revenue gains, and the companies spend more on stock buybacks and dividends than on R&D.
I have an entire thread about this ๐ 14/
https://t.co/tW70aZJ6x8 https://t.co/CLg5pz0awI
So what can we do about this?
4 VERY BIG THINGS:
1) Pass the #BuildBackBetter Act
2) Address Anticompetitive Practices
3) Prohibit Anticompetitive Pay-for-Delay Agreements
4) Ensure Transparency of R&D Costs
15/
๐ฃ๐๐ฆ๐ฆ ๐ง๐๐ ๐๐จ๐๐๐ ๐๐๐๐ ๐๐๐ง๐ง๐๐ฅ ๐๐๐ง: We need the #BuildBackBetter Act, to let Medicare negotiate prices and limit out-of-pocket costs for insulin and other drugs. 16/
The Build Back Better Act would reduce beneficiariesโ share of costs for prescription drugs, set caps on out-of-pocket spending, and realign the cost distribution in the catastrophic coverage phase from the Medicare program to Part D plan sponsors and manufacturers. 17/
It would also disincentivize companies from taking price increases by applying an inflation penalty when a manufacturer raises a drugโs price faster than the rate of inflation. 18/
You can read about all the way the #BuildBackBetter Act will lower drug prices here: 19/ https://t.co/vqXVDwlrzp
๐๐ฑ๐ฑ๐ฟ๐ฒ๐๐ ๐๐ป๐๐ถ๐ฐ๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ถ๐๐ฒ ๐ฃ๐ฟ๐ฎ๐ฐ๐๐ถ๐ฐ๐ฒ๐: We must address anticompetitive practices like targeting docs to prescribe branded drugs instead of generics.
@RepCicilline's Affordable Prescriptions for Patients Through Promoting Competition Act does just that
๐ฃ๐ฟ๐ผ๐ต๐ถ๐ฏ๐ถ๐ ๐ฃ๐ฎ๐-๐ณ๐ผ๐ฟ-๐๐ฒ๐น๐ฎ๐: we must address anticompetitive tactics to maintain monopoly pricing, like entering settlement agreements that delay access to generics.
@RepJerryNadler's Preserve Access to Affordable Generics and Biosimilars Act does just that. 20/
๐๐ป๐๐๐ฟ๐ฒ ๐ง๐ฟ๐ฎ๐ป๐๐ฝ๐ฎ๐ฟ๐ฒ๐ป๐ฐ๐ ๐ผ๐ณ ๐ฅ&๐ ๐๐ผ๐๐๐: Cost transparency would provide valuable data about companiesโ investments in innovation and their claims that high costs of R&D justify the skyrocketing prices of their drugs. 21/
You can read @OversightDems' full report (warning it's 192 pages) or a more manageable executive summary (16 pages) here: https://t.co/HiI7ElNRID