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prescription drug prices
'Children Are Dying': Sanders Pushes Pharma Giants to Cap Cost of Inhaler for Kids
"No child in America should be sick or die because their parents cannot afford or access the inhalers they need to breathe," said Sen. Bernie Sanders.
Aug 13, 2024
U.S. Sen. Bernie Sanders on Tuesday urged a pair of pharmaceutical corporations to immediately slash the price tag of the generic version of the most commonly prescribed inhaler for children, continuing a pressure campaign that the Vermont Independent and his Democratic colleagues have been waging throughout the year with
remarkable results.
Sanders' latest call was directed at GlaxoSmithKline (GSK) and Prasco Laboratories, which sells the authorized generic of Flovent—an inhaler that GSK
pulled from the U.S. market earlier this year.
In March, after the Sanders-led Senate Health, Education, Labor, and Pensions (HELP) Committee launched an investigation into the high costs of inhalers, GSK announced it would join other companies in capping out-of-pocket costs for its asthma medications at $35 a month.
But GSK's pledge
did not extend to Flovent's generic, which currently costs patients up to hundreds of dollars per month. Prasco Laboratories sells the generic product under a deal with GSK.
"Unfortunately, the retail price of this inhaler is between $172 and $313, and many insurance companies are refusing to cover it because the net price is more expensive than the brand-name version of Flovent," Sanders noted in a statement Tuesday. "Facing high prices and a lack of insurance coverage, families throughout the country are having a very difficult time purchasing inhalers for their children."
"The result: Pediatricians have observed a major increase in the number of children with asthma who have been admitted to hospitals," Sanders continued. "There are also reports that more children are dying. That is absolutely unacceptable. No child in America should be sick or die because their parents cannot afford or access the inhalers they need to breathe."
Nearly five million children in the U.S. have asthma, according to
data from the Centers for Disease Control and Prevention, and an estimated 300 children and young adults in the country die from asthma attacks each year.
CNNreported earlier this year that GSK's decision to pull Flovent off the market in the U.S. put kids in danger of asthma flare-ups and visits to the ER."
Experts and lawmakers have accused GSK of yanking Flovent from the U.S. market to avoid paying significant federal penalties for raising the product's price tag above the rate of inflation.
"Instead of paying Medicaid the rebates it owed in 2024, GSK appears to have used a loophole to preserve its profits from years of exorbitant price increases," Sen. Maggie Hassan (D-N.H.) wrote in a letter to GSK's chief executive in early May. "GSK replaced both of its brand Flovent inhalers with an identical line of products licensed to a different manufacturer—a company that is conveniently exempt from Medicaid rebates, since it has no existing price history."
"Through your arrangement with Prasco Laboratories," Hassan added, "GSK appears to be circumventing Medicaid rebates to protect decades of profits gained by price gouging patients and public programs."
Sanders said Tuesday that, going forward, the focus of his Senate committee's investigation into inhaler costs and corporate price gouging will be on "the crisis of infants and children with asthma who have been struggling to receive the inhalers they need."
"These companies have a responsibility to make sure that children with asthma in America have access to the inhalers they need," said Sanders. "As the chairman of the HELP Committee, I will continue to do everything I can to make sure that the American people no longer pay, by far, the highest prices in the world for prescription drugs."
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'Corporate Greed': Biden, Sanders Tell Big Pharma to Stop 'Ripping Off' Americans
Past administrations "have been intimidated and deterred from challenging Big Pharma's monopoly power," an expert said. "Today, however, President Biden and Sen. Bernie Sanders call Big Pharma's bullying bluff."
Jul 02, 2024
President Joe Biden and Sen. Bernie Sanders on Tuesday called for prescription drug companies to lower prices and stop "ripping off" Americans.
The message from Biden and Sanders (I-Vt.) came in a joint op-ed in USA Today in which they laid out the reforms they've already pushed through, called out two pharmaceutical companies in particular for the "unconscionably" high prices they charge to Americans, and vowed to take governmental action to end the "corporate greed."
"There is no rational reason why Americans, for decades, have been forced to pay, by far, the highest prices in the world for the prescription drugs they need," Biden and Sanders wrote. "There is no rational reason why, for decades, 1 out of 4 Americans have been unable to afford the medicine their doctors prescribe.
"And it is most certainly not Americans' patriotic duty to pay high drug prices at home so others abroad can enjoy the fair prices that every American is entitled to," they added.
Consumer rights groups celebrated the strong position that the president and the senator took.
"For decades, presidential administrations on a bipartisan basis have been intimidated and deterred from challenging Big Pharma's monopoly power," Robert Weissman, president of Public Citizen, an advocacy group, said in a statement. "Today, however, President Biden and Sen. Bernie Sanders call Big Pharma's bullying bluff."
Pharmaceutical companies can make whatever excuses they want for their sky-high drug prices — we know it’s bullshit. And Biden and Bernie just called them on it.
If Big Pharma won’t quell its own greed, it’s up to the government to do it for them.https://t.co/YiodsDIoQI
— Public Citizen (@Public_Citizen) July 2, 2024
Some progress has been made on prescription drug prices in the last four years, Biden and Sanders noted in their op-ed.
The Inflation Reduction Act, which they helped enact, established a price ceiling of $35 per month for insulin for senior citizens. And, starting in 2025, no senior citizen will have to pay more than $2,000 in prescription drug prices in a given year—a reform Biden and Sanders said they'd like to see apply to all Americans. Medicare can now also negotiate with pharmaceutical companies to lower prices, as other countries do.
Yet the problem of high drug prices remains, and Sanders has made solving it a priority, focusing on it as chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee. Last year, he wrote an op-ed in Fox News, calling the opposition to pharmaceutical company profiteering an issue on which Americans of all political stripes "could not be more united." He also released a report showing that medications made using publicly funded research were then being priced exorbitantly by private firms.
The Vermont Independent has also repeatedly grilled pharmaceutical executives in hearings over the last two years, but they have generally not committed to lowering prices, though some companies did institute caps on out-of-pocket expenses on inhalers.
In April, Sanders and Biden teamed up for an event at the White House to discuss the need to lower prescription drug prices.
"I'm proud that my administration is taking on Big Pharma in the most significant ways ever," Biden said at the event. "And I wouldn't have done it without Bernie... Bernie was the one who was leading the way for decades."
Tuesday's op-ed marks the continuation of their partnership on the issue, with Biden effectively endorsing Sanders' drug pricing agenda, particularly for obesity and diabetes medications. HELP launched an investigation into Novo Nordisk's pricing of Ozempic and Wegovy in April, and the Danish multinational was the primary example of wrongdoing chosen by Biden and Sanders in their op-ed.
Ozempic and Wegovy are up to six times more expensive in the U.S. than in peer countries, Biden and Sanders wrote.
"In 2023, for example, Novo Nordisk made over $12 billion in profits, in part by charging Americans over $1,000 a month for a prescription drug that can be profitably manufactured for less than $5. That is not making a reasonable return on investment. That is price gouging. That is corporate greed."
Sanders recently succeeded in pressuring Novo Nordisk CEO Lars Fruergaard Jørgensen to agree to testify in front of HELP in September.
Biden and Sanders noted that even just within obesity and diabetes care, the problem goes beyond Novo Nordisk: Eli Lilly's Mounjaro, a comparable weight-loss drug, is also overpriced. They argued that if the prices of such drugs are not lowered, they could bankrupt the U.S. healthcare system.
Biden then repeated the message through his own channels.
"If Big Pharma refuses to lower prescription drug prices and end their greed, we will do everything within our power to end it for them," Biden wrote on social media following the publication of the op-ed. "Bernie Sanders and I will not rest until every American can afford the prescriptions they need to lead healthy, happy, and productive lives."
Though the timing may be incidental, Biden's cooperation with Sanders, a leading progressive, comes during a week in which he needs to rally his base—a task Sanders is known to excel at. Biden faces widespread pressure to step aside from the presidential race following a subpar debate performance on Thursday night.
While progressives have been sharply critical of Biden on a range of issues, it's not clear whether his potential replacements at the top of the Democratic ticket would be so willing to team up with Sanders and call out corporate greed.
"Bernie Sanders and Joe Biden just co-authored a piece laying into big pharmaceutical companies for overcharging Americans on obesity drugs," Matt Stoller, a progressive commentator and research director of the American Economic Liberties Project, wrote on social media. "I realize Biden is senile, but would his replacements do anything like this? Most wouldn't."
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After Investigation by Sanders-Led Panel, Pharma Giant Caps Inhaler Costs
"We launched an investigation into big drug companies because the prices they were charging for inhalers just didn't add up," said Sen. Tammy Baldwin. "And looks like we were right."
Mar 07, 2024
Starting in June, the German pharmaceutical giant Boehringer Ingelheim will cap co-pays for its inhalers at $35 for U.S. patients—a decision that came just two months after members of a Senate panel led by Sen. Bernie Sanders launched an investigation into inhaler price gouging.
Combivent Respimat, one of Boehringer Ingelheim's inhaler products, carries a list price of around $500 in the U.S. That's roughly 70 times what the company charges for the same product in France, where patients can get the inhaler for $7.
Boehringer Ingelheim said Thursday that it plans to reduce the list prices of some of its inhalers.
Sanders (I-Vt.), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, called the company's moves "very positive steps in the right direction" and demanded that other major inhaler manufacturers "take similar action."
"A Vermont resident recently told my office that she has to pay $320 per month for Boehringer Ingelheim's Spiriva HandiHaler. As a result of today's decision, she could save more than $3,000 a year on the inhaler that she needs to breathe," Sanders said in a statement Thursday. "If Boehringer Ingelheim can take action to cap the cost of inhalers at $35 in the United States and lower the list price of some of the inhalers it manufactures, these other companies can do the same."
In January, Sanders and other Senate HELP Committee members announced a probe into "the extremely high prices" that Boehringer Ingelheim, AstraZeneca, and other companies charge for their inhalers.
"We launched an investigation into big drug companies because the prices they were charging for inhalers just didn't add up," Sen. Tammy Baldwin (D-Wis.), a member of the HELP panel, wrote on social media Thursday. "And looks like we were right."
We launched an investigation into big drug companies because the prices they were charging for inhalers just didn’t add up.
And looks like we were right.
I’m glad to see some of the price gouging end and proud to help lower costs for Wisconsin families. pic.twitter.com/QluMNCSwJA
— Sen. Tammy Baldwin (@SenatorBaldwin) March 7, 2024
Boehringer Ingelheim was also facing scrutiny from the Federal Trade Commission (FTC). In November, the agency said it believes some of the company's patents "may have been improperly listed in the Orange Book," which includes products the agency deems safe and effective.
"Patents improperly listed in the Orange Book may delay lower-cost generic drug competition," the FTC wrote in a letter to Boehringer Ingelheim. "By listing their patents in the Orange Book, brand drug companies may benefit from an automatic, 30-month stay of FDA approval of competing generic drug applications."
On Wednesday, as Reutersreported, a class-action lawsuit filed in federal court by the Massachusetts Laborers' Health and Welfare Fund accused Boehringer Ingelheim of "improperly submitting patents to the U.S. Food and Drug Administration to delay generic competition and inflate prices for its lung disease drugs Combivent Respimat and Spiriva Respimat."
"As a result of Boehringer's wrongful Orange-Book-listing scheme, there [are], to this day, no affordable generic versions of either Combivent Respimat or Spiriva Respimat," the lawsuit states. "Payors must continue to pay for expensive brand-name products, instead of affordable generic products that should have been available years ago. This has caused payors, including the plaintiff, to suffer many millions, if not billions, of dollars in overcharges over the past three years."
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