Holding Big Pharma Accountable and Addressing the High Cost of Prescription Drugs

Dear Fellow Vermonter,

There is a lot of discussion about how “divided” we are as a nation. And on many issues, that is absolutely true. But there is one issue that most Americans agree on, and that is that they are sick and tired of being ripped off by the pharmaceutical industry. Almost all Americans agree. We must lower the outrageously high cost of prescription drugs.

And that is why, as Chairman of the Senate Committee on Health, Education, Labor, and Pensions (HELP), I recently held a committee hearing to hold Big Pharma accountable and to help Americans understand why we pay, by far, the highest prices in the world for prescription drugs. You can watch the full hearing HERE.

I brought the CEOs of Johnson & Johnson, Merck, and Bristol Myers Squibb in to testify at the hearing. These three companies sell some of the most expensive and widely prescribed drugs in the U.S. and they sell their products here for far higher prices than in other countries.

At the hearing, I asked these CEOs that very simple question: Why is it that the United States pays, by far, the highest prices in the world for prescription drugs?

Shock of all shocks, the CEOs did their best to pass the buck and convince us that it was “not their fault.” But here is the truth:

• Merck charges Americans with cancer $191,000 a year for the medicine Keytruda. That same exact product can be purchased for $91,000 in France and $44,000 in Japan. AND YET, in 2022, Merck made $14.5 billion in profits, handed out over $7 billion in dividends to its wealthy stockholders, and paid its CEO over $52 million in compensation.
  
  
• Bristol Myers Squibb charges patients in America $7,100 a year for Eliquis, a blood thinner that helps prevent strokes. That same exact product can be purchased for just $900 in Canada and $650 in France. AND YET, in 2022, Bristol Myers Squibb made $6.3 billion in profits, while recently spending over $12 billion on stock buybacks and dividends and giving its CEO over $41 million in compensation.
  
  
• Johnson & Johnson charges Americans with arthritis $79,000 for the medicine Stelara. That same exact product can be purchased for just $20,000 in Canada and just $12,000 in France. AND YET, in 2022, Johnson & Johnson made nearly $18 billion in profits, paid its CEO over $27 million in compensation, and spent over $17 billion on stock buybacks and dividends.

Meanwhile, Vermonters across our state and millions of Americans suffer – and some die – because they can’t afford the prescription drugs they need.

You might be wondering, how does this happen? How do they get away with all of that?

And here’s the answer: The United States government does not regulate drug companies. Big drug companies, through massive lobbying and campaign contributions, regulate Congress.

Over the past 25 years, the drug companies have spent $8.5 BILLION on lobbying. Today, they have some 1,800 well-paid lobbyists in Washington, D.C. – including former leaders of the Republican and Democratic parties. Unbelievably, that is more than three lobbyists for EVERY member of Congress.

But here is some good news. We are beginning to take on the greed of Big Pharma and make some progress.

For the first time ever – as a result of the Inflation Reduction Act which we passed into law a few years ago – Medicare can begin doing what every major country on earth does and what the VA has been doing for more than 30 years. And that is negotiating to lower the price of some drugs, including Januvia, Stelara, and Eliquis. Further, individuals with Medicare can now receive certain vaccines for free. The Inflation Reduction Act also capped the cost of insulin at $35 per product per month for almost four million seniors and others on Medicare with diabetes, which can lead to hundreds of dollars in savings for a month’s supply.

But let’s be clear: Much more needs to be done. I hope you will join me as I continue this fight.

Sincerely,