Big Pharma Spends Billions More on Executives and Shareholders Than on R&D

Enlarge Senate HELP Committee

When big pharmaceutical companies are confronted on their exorbitant price of prescription drugs In THE WE, they often retirement has two well worn arguments: A, that THE high medicine prices blanket costs of research And development new drugs, A risk And Dear effort, And two, that medium managers – pharmacy advantage managers (PBM), has be specific - are In fact THE those price gouging Americans.

Both of these arguments confronted substantial blows In A hearing THURSDAY detained by THE Senate Committee on Health, Education, Work And Retirees, chaired by The senator Bernie Sanders (I-Vt.). In do, pharmaceutical companies are expenses billion of dollars more on sumptuous executive compensation, dividends, And action buyouts that they spend on research And development (R&D) For new drugs, Sanders sharp out. "In other words, these companies are expenses more has enrich their own shareholders And CEO that they are In discovery new heals And new treatments," he said.

And, while PBM certainly contribute has America uniquely astronomical medicine price, their profiteer accounts For A little fraction of THE massive medicine walk, Sanders And A expert panelist note. PBM work as shady medium managers between drug manufacturers, insurers, And pharmacies, setting medicine forms And consumer prices, And negotiate discounts And discounts behind THE scenes. However PBM practices contribute has generally costs, they pale compared with has pharmaceutical benefits.

Instead, THE heart of THE issue, according to has A Senate report released earlier This week, East pharmaceutical greed, patent game that allow medicine creators has stretchable out monopolies, And powerful lobbying.

On THURSDAY, THE Senate Committee gathered THE CEO of three monster pharmaceutical companies has question them on THE medicine price practices: Robert Davis of Merck, Joaquin Duato of Johnson & Johnson, And Chris Börner of Bristol Myers Squib.

"We are aware of THE a lot important save lives drugs that your companies to have product, And It is extraordinarily important," Sanders said Before examination THE CEO. "But, I think, as all of You know, those drugs mean Nothing has anybody WHO can't allow that."

Sanders called medicine price In THE WE "scandalous," noting that Americans spend by far THE most For prescription drugs In THE world. A report This month by THE WE Department of Health And Human Services find that In 2022, WE prices through all brand And generic drugs were almost three times as high as prices In 33 other rich countries. That means that For each dollar paid In other countries For prescription drugs, Americans paid $2.78. And that gap East enlargement on time.

Focus on drugs Since THE three companies represented has THE hearing (NOT A WORD, Merck, And Bristol Myers Squib), THE Senate report look at has how initial prices For new drugs enter THE WE walk to have skyrocketed on THE pass two decades. THE analysis find that Since 2004 has 2008, THE median launch price of innovative prescription drugs sold by NOT A WORD, Merck, And Bristol Myers Squib was on $14,000. But, on THE pass five years, THE median launch price was on $238,000. Those Numbers account For inflation.

THE report concentrate on high profit drugs Since each of THE medicine creators. from Merck Keytruda, A cancer medicine, costs $191,000 A year In THE WE, but East just $91,000 In France And $44,000 In Japan. NOT A WORD HIV medicine, Symtuza, East $56,000 In THE WE, but only $14,000 In Canada. And Bristol Myers Squibb's Eliquis, used has prevent hits, costs $7,100 In THE WE, but $760 In THE UNITED KINGDOM And $900 In Canada.

Sanders request Bristol Myers Squibb's CEO Börner if THE business would be "reduce THE list price of Eliquis In THE United States has THE price that You charge In Canada, Or You TO DO A profit?" Börner replied that "We can't TO DO that commitment mostly...