Politics
Tomorrow, three outstanding pharmaceutical firm CEOs will testify earlier than the Senate, together with Johnson & Johnson. The listening to held by the Senate Well being Committee is to debate the astronomically excessive costs People are pressured to pay for essential drugs for persistent sicknesses.
Undoubtedly, testimony will contact on the pending lawsuits filed by the identical firms to halt federally mandated Medicare negotiations with the businesses to decrease mentioned drug costs. Because of the Inflation Discount Act, Medicare has been given the authority to barter the costs down for important drugs, a lot to the ire of massive Pharma.
One of the best ways to know the difficulty of sky-high medicine prices for People and the pending litigation over Medicare negotiations is to flashback to late final yr when Congressman Ro Khanna grilled Johnson & Johnson Assistant Normal Counsel Aviva Wein.
Making financial institution
Late final yr, Aviva Wein, the assistant common counsel for Johnson & Johnson, testified earlier than Congress on the difficulty of reducing drug costs for People. Ms. Wein didn’t financial institution on Congressman Ro Khanna coming with some onerous numbers and what ought to’ve been a simple query for her to reply.
Congressman Khanna used the leukemia medicine Imbruvica to show some extent concerning the staggering price of essential medicine for blood most cancers. Unsurprisingly, Ms. Wein didn’t know the main points of how a lot Imbruvica prices, however Congressman Khanna was capable of educate her.
He laid out that the price of one pill of Imbruvica prices $484 which equates to roughly $14,000 monthly of medicine. For one yr of medicine, it prices a blood most cancers affected person $160,000.
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When requested, Ms. Wein couldn’t present the general income that has introduced her employer, however once more Congressman Khanna didn’t disappoint. He defined that Johnson & Johnson has made $22 billion off of Imbruvica during the last ten years.
General, for 2023, Congressman Khanna let Ms. Wein know that the corporate she represents made $65 billion. After laying out how properly Johnson & Johnson does off of Imbruvica, issues received attention-grabbing.
A easy query
Johnson & Johnson, amongst different pharmaceutical firms, is suing the federal authorities over the Inflation Discount Act’s requirement that Medicare attempt to negotiate down the worth of medicines identical to Imbruvica. The lawsuit from Johnson & Johnson claims that this negotiation constitutions an “unjust taking.”
The lawsuit is referencing the Fifth Modification’s ‘Takings Clause’ which states:
“Nor shall non-public property be taken for public use, with out simply compensation.”
Primarily, the argument is the federal authorities is taking drugs like Imbruvica from the corporate that creates it to present to the general public with out offering applicable cost. Keep in mind, Johnson & Johnson at the moment makes $160,000 a yr per blood most cancers affected person who purchases their medicine.
Congressman Khanna asked Ms. Wein:
“Do you imagine when the Veterans Administration negotiates for drug costs with you that that could be a violation of the Takings Clause?”
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Simply as with each query Congressman Khanna requested, Ms. Wein couldn’t reply. To which Congressman Khanna rightly identified the absurdity of her incapacity:
“You’re right here, you’re the assistant common counsel for a corporation accusing the US authorities of taking your property as a result of we’re negotiating drug costs, and you’ll’t reply a easy query…”
Seems like an terrible lot like another Congressional listening to on another matter.
The purpose
Tomorrow, Merck, Johnson & Johnson, and Bristol Myers Squibb’s CEOs will testify on the Senate Well being Committee listening to on drug costs. Whereas the CEO of Bristol Myers Squibb had freely accepted his invitation to testify, it took the specter of subpoena for the CEOs of Merck and Johnson & Johnson to agree.
Had the Senate Well being Committee issued the subpoenas, it might’ve been the primary time in 40 years because the committee has had to make use of such a tactic. Of observe, the next drugs are on the record for negotiation with Medicare:
- Merck’s diabetes drug Januvia
- Johnson & Johnson’s blood most cancers therapy drug Imbruvica
- Myers Squibb’s blood thinner Eliquis
The problem isn’t simply that these medicine are costly and have a considerably greater damaging affect for these on Medicare particularly. The purpose is that it’s costlier to buy nearly each medicine in the US than wherever else on this planet.
For example:
- Merck’s Januvia record value is $6,900 in the US – $200 in France
- Johnson & Johnson’s psoriasis drug Stelara record value is $79,000 in the US – $16,000 in the UK
- Myers Squibb’s Eliquis record value is $7,100 in the US – $650 in France
Why is it so costly for People affected by persistent sickness to buy the drugs they want than it’s for the French and the British? Why is it a difficulty for Medicare to barter for decrease costs than for the VA?
My cash is that none of these questions can be answered tomorrow, however they each deserve a solution. However one factor is definite: it wasn’t way back that these similar firms, particularly Johnson & Johnson, have been hailed as heroes for pushing by way of an experimental vaccine.
The political elite have brief recollections; let’s hope those that elected them of their seats remind them of the long-fought battle with massive Pharma.
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