WASHINGTON, D.C. – The CEOs of three major drug companies faced tough questioning from the Senate Committee on Health, Education, Labor and Pensions on Thursday regarding the soaring prices of prescription drugs in the United States. Vermont Senator Bernie Sanders, the chairman of the committee, pressed the executives about the significant price disparities between the U.S. and other countries, citing specific examples of drugs being significantly more expensive in the U.S. compared to nations like France, Germany, and Japan.
The three-hour hearing involved executives from Bristol Myers Squibb, Johnson & Johnson, and Merck discussing their pricing practices and how they allocate their finances. Senator Sanders emphasized the importance of ensuring that life-saving drugs are accessible to all individuals, regardless of their financial means.
An analysis presented to the committee revealed staggering price differences, such as Merck’s cancer drug Keytruda costing $100,000 more in the U.S. than in France, Bristol Myers Squibb’s Eliquis blood thinner being nearly 10 times more expensive in the U.S. compared to Germany, and Johnson & Johnson’s arthritis drug Stelara costing five times more in the U.S. than in Japan.
The executives justified the price disparities by arguing that the U.S. receives new drugs faster and highlighted the role of pharmaceutical benefit managers, who often claim a significant portion of the list prices for themselves. However, senators countered these claims, pointing out that longer drug approval processes in countries like Japan and Canada have not hindered their citizens’ life expectancies, which surpass those in the U.S.
A poignant moment came when Senator Sanders revealed that over 500 individuals had turned to crowdfunding platforms, such as GoFundMe, to raise funds for cancer treatments, exemplifying the dire financial challenges faced by many Americans in need of expensive medications.
The CEOs of Merck and Johnson & Johnson initially declined to testify, citing lack of expertise, but were eventually compelled to do so after the committee threatened to subpoena them. Additionally, a report released by the HELP Committee highlighted that the three companies had prioritized executive compensation, stock buybacks, and dividends over research and development efforts.
The hearing shed light on the complex factors contributing to the high prices of prescription drugs in the U.S., prompting further debate on the influence of foreign governments, pharmaceutical benefit managers, and the financial choices of drug manufacturers.