Business

Drugmakers have been reluctant to agree to testify before Congress at what is shaping up to be a series of hostile hearings examining the industry’s drug pricing practices.

None of the companies “invited” to speak at last week’s Senate Finance Committee hearing titled “Drug Pricing in America: A Prescription for Change, Part I” showed. But pharmaceutical companies are starting to come around this week, following some not-so-veiled threats by senators to “compel” their executives to testify, likely with subpoenaes.

Lawmakers released letters inviting executives from AbbVie, AstraZeneca, Bristol-Myers Squibb, Johnson & Johnson, Merck, Pfizer and Sanofi to testify later this month at the hearing: “Drug Pricing in America: A Prescription for Change, Part II.”

So far, four of the seven invited have said they will send their CEOs to Capitol Hill. The other drugmakers may not have a choice, however. Senate Finance Committee ranking member Sen. Ron Wyden, D-Ore., has stopped short of threatening to issue a subpoena, indicating that participation at the hearing isn’t entirely voluntary.

Here’s what the pharmaceutical companies are saying:

“AstraZeneca can confirm that an invitation from Chairman Grassley and Ranking Member Wyden was received on February 4th, 2019 to present testimony at the February 26th Senate Finance Committee hearing. We are currently reviewing the request and will respond to the Committee in due course.”

Bristol-Myers Squibb CEO Giovanni Caforio will participate in the Senate Finance Committee hearing in Washington, DC on February 26, 2019.

“We share the committee’s goal of reducing patient out-of-pocket costs and are committed to working with Senators Grassley and Wyden on innovative policy ideas. Our CEO, Ken Frazier, will be there to discuss solutions with the committee later this month.”

“I can now confirm that Pfizer’s CEO Albert Bourla has accepted the Senate Finance Committee’s invitation to testify on February 26th, and looks forward to a productive discussion on how to best serve the needs of American patients.”

“Dr. Olivier Brandicourt accepts the Chairman’s and Ranking Member’s invitation to testify at the Senate Committee on Finance hearing on drug pricing on February 26. We are grateful for the opportunity to share Sanofi’s commitment to increasing access and affordability for patients as well as share our views about potential policy solutions to reduce costs and improve affordability.”

Johnson & Johnson didn’t immediately say whether it would send its CEO to Washington. AbbVie didn’t respond to a request for comment.

The invitations come as Democrats make moves to lower prescription drug costs.

House Oversight Committee Chairman Elijah Cummings, D-Md., last month said he sent letters to 12 drugmakers seeking detailed information and documents about the companies’ pricing practices. (AbbVie, AstraZeneca, Johnson & Johnson, Pfizer, and Sanofi were among the 12.) It has yet to be determined whether they’ll be asked to testify before the House panel.

Democrats also sent letters to Eli Lilly, Novo Nordisk and Sanofi requesting information on insulin prices.

President Donald Trump, who also touched on high drug prices during his State of the Union Address Tuesday night, has also vowed to bring prices down.

The Trump administration last week proposed ban on “backdoor deals” that pharmaceutical companies cut with middlemen who get preferred status for their drugs in Medicare’s prescription drug plans.

Lawmakers in the Senate have already introduced at least two separate bipartisan bills aimed at lowering drug costs. One would make it easier for generic competition and the other would support parts of Trump’s proposal.

Democratic Reps. Bernie Sanders and Elijah Cummings have also introduced a bill in the House that would allow the government to negotiate lower drug prices for Medicare, among other measures.

Pharmaceutical companies say price increases have been modest and argue lowering drug profits would hinder the industry in making investments towards new and innovative cures. They applauded the administration’s pursuit to change the nation’s rebate system.

Products You May Like

Articles You May Like

Here’s the level oil needs to hold for the crude rally to rage on, according to one top technician
Goldman Sachs CEO: The US economy ‘is chugging along pretty well’
Can you save money and the planet by owning a Tesla or another electric car?
Earnings and data could be proof that slowdown fears were overblown
J.P Morgan is soaring on earnings, and its rivals won’t be able to catch up, says expert

Leave a Reply

Your email address will not be published. Required fields are marked *