Biotech
Monday, January 29th, 2024 3:43 pm EDT
Key Points
- CEO Testimony on High Drug Prices: The CEOs of Merck and Johnson & Johnson have voluntarily agreed to testify at an upcoming Senate hearing on high drug prices in the U.S. The Senate Health, Education, Labor and Pensions Committee’s hearing is scheduled for Feb. 8, and both executives had initially declined requests to appear. Bristol Myers Squibb’s CEO, Chris Boerner, and another unnamed pharmaceutical CEO have also agreed to testify. The panel plans to ask each executive about the reasons behind charging substantially higher prices for medicines in the U.S. compared to other countries.
- Legal Challenges to Medicare Drug Price Negotiations: The pharmaceutical companies involved, including J&J, Merck, and Bristol Myers Squibb, are currently suing to halt the first round of Medicare drug price negotiations. This process, part of President Joe Biden’s Inflation Reduction Act, aims to make costly medications more affordable for seniors by establishing new prices that will go into effect in 2026. The CEOs will likely face questions about their opposition to these negotiations during the Senate hearing.
- Bipartisan Efforts to Address Drug Pricing Discrepancies: The issue of high drug prices has become a rare point of bipartisan concern, with both major political parties seeking to rein in healthcare costs for Americans. Sen. Bernie Sanders, who chairs the Senate Health panel, expressed hope that the CEOs of major pharmaceutical companies would address the “incredible price discrepancies” and collaborate to substantially reduce drug prices for the American people. The upcoming hearing reflects ongoing efforts by lawmakers to explore solutions and enhance understanding of challenges facing patients in the pharmaceutical industry.
The CEOs of pharmaceutical giants Merck and Johnson & Johnson have voluntarily agreed to testify at an upcoming Senate hearing on high drug prices in the U.S., according to an announcement by Sen. Bernie Sanders. The Senate Health, Education, Labor and Pensions Committee has scheduled the hearing for Feb. 8 at 10 a.m. ET, focusing on the substantially higher prices charged by these companies for medicine in the U.S. compared to other countries. Initially, both CEOs had declined requests to appear, prompting the committee to consider subpoenas, which would have been the first since 1981. Bristol Myers Squibb’s CEO, Chris Boerner, and another unnamed pharmaceutical CEO have agreed to initial invitations to testify. The executives will be questioned about their companies’ pricing strategies, particularly for high-cost drugs like Merck’s Januvia, J&J’s Imbruvica, and Bristol Myers Squibb’s Eliquis. Notably, these drugs will be subject to the first round of Medicare drug price negotiations under President Joe Biden’s Inflation Reduction Act, a policy aimed at making medications more affordable for seniors. Despite legal challenges from the pharmaceutical companies, the hearings aim to address significant price discrepancies and explore solutions to reduce drug prices for Americans. Merck and J&J have expressed readiness for a productive hearing to enhance the committee’s understanding of the pharmaceutical industry and discuss patient-centered solutions. Last year, the Senate Health Committee heard testimony from CEOs of other pharmaceutical companies on the issue of high drug prices, reflecting the bipartisan concern and efforts to address this longstanding challenge in the U.S. healthcare system.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/26/merck-jj-ceos-agree-to-testify-in-senate-hearing-on-drug-prices-.html
