Pharma CEOs to Senate: We Will Lower Drug Prices if Rebates Go Away
Summary
By the end of the highly anticipated grilling before the Senate’s finance committee, their strategy for taking on two major reform proposals by the Trump administration was also clear. The administration took aim at PBMs in January, floating a plan to pass the secretive discounts, or rebates, they pocket from drug makers directly to consumers. But the industry unanimously draws the line at what it considers “price controls,” including the popular idea that Medicare, with 44 million beneficiaries, should use that power to negotiate drug prices directly. “The government should not control prices… or worse, outsource price decisions to other countries,” said Sanofi (NYSE: SNY ) CEO Olivier Brandicourt. Gonzalez was a particular target today because of AbbVie’s strategy to fend off competition for its best-selling anti-inflammatory drug adalimumab (Humira), which accounted for $12.3 billion in 2017 net revenues, nearly two-thirds of AbbVie’s total.
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