DOSE OF REALITY: BIG PHARMA STICKS WITH PRICE-HIKING “BUSINESS AS USUAL” DURING PANDEMIC

Jul 20, 2020

AMERICAN VOTERS OVERWHELMINGLY SUPPORT MARKET-BASED SOLUTIONS TO HOLD DRUG COMPANIES ACCOUNTABLE, OPPOSE ADDITIONAL INCENTIVES FOR R&D

COVID-19 AND THE CRISIS OF PRESCRIPTION DRUG PRICES

Before the COVID-19 crisis, more than 58 million Americans struggled to afford their prescription drugs. Now, the economic impact of the pandemic continues to leave millions more American workers, families and seniors struggling just to stay afloat.

Prescription drug prices are out-of-control. Too many Americans were already unable to afford their medications and resorting to dangerous measures like rationing — before the historic economic uncertainty of the current crisis. It is critical patients are able to take their medications as prescribed in order to stay healthy.

BIG PHARMA CALLOUSLY HIKES Rx PRICES AS AMERICANS BATTLE PANDEMIC

Despite the unprecedented economic uncertainty facing millions of Americans, Big Pharma began hiking prescription drug prices in July and increased prices on at least 42 brand name drugs in the first week of the month. Eleven of Big Pharma’s price hikes that have gone into effect in July equal or exceed five percent.

Big Pharma companies traditionally hike prescription drug prices in two large biennial batches: At the start of the year and mid-year in early summer. In January of this year, Big Pharma hiked prices on more than 600 drugs by an average of 5.2 percent. Last summer, Big Pharma hiked prices on 104 drugs by an average of 13.1 percent. During these challenging times, Big Pharma should have acknowledged American patients and families need relief, not higher prices, rather than sticking with their price-hiking business-as-usual approach.

MAJORITY OF AMERICANS SUPPORT MARKET-BASED SOLUTIONS TO HOLD BIG PHARMA ACCOUNTABLE

Americans rightly recognize Big Pharma’s track record of putting profits over people. In fact, a recent Gallup and West Health poll found nearly nine in 10 Americans are concerned Big Pharma will capitalize on the coronavirus crisis to hike prescription drug prices. The survey found more than half (55 percent) of Americans are “very concerned” about Big Pharma increasing drug prices.

And a recent national survey, commissioned by CSRxP and conducted by Morning Consult, found American voters overwhelmingly blame Big Pharma for rising prescription drug prices, believe pharmaceutical companies still put profits over people and back market-based solutions to hold drug companies accountable and lower drug prices.

A Decisive Majority Hold Big Pharma Responsible for Rising Rx Prices: Nearly 85 percent of survey respondents lay blame for “the rising price of prescription drugs” at the feet of pharmaceutical companies.
Americans Remain Skeptical of Big Pharma and Believe the Industry Continues to Put Profits Over People: Two-thirds of American voters believe Big Pharma puts profits before people, has left too many Americans unable to afford the medications they need to survive and must be held accountable now. While just 17 percent believe pharmaceutical companies are doing everything they can to innovate and develop COVID-19 treatments and that now would be the wrong time to hold the industry accountable.
Americans Support Market-Based Solutions to Lower Prescription Drug Prices and Hold Big Pharma Accountable: Nearly 90 percent of American voters believe it’s important Congress pass solutions to hold Big Pharma accountable.
A Strong Majority of Voters Say Congressional Inaction on Rx Prices Will Impact Their Vote: More than 70 percent of voters say it will impact their vote if Congress fails to pass legislation to lower prescription drug prices.

AMERICANS WANT POLICYMAKERS TO ENSURE COVID-19 TREATMENTS ARE AFFORDABLE AND OPPOSE ADDITIONAL INCENTIVES FOR THEIR DEVELOPMENT

Americans Overwhelmingly Believe Policymakers Must Act to Keep COVID Treatments Developed with Taxpayer Investment Affordable: After hearing taxpayers are spending billions collaborating on their development, over 80 percent of voters believe policymakers must prevent pharmaceutical companies from setting unreasonably high prices and increasing those prices to boost profits. Additionally, 84 percent of American voters agree that policymakers must ensure coronavirus medications are affordable.
Americans Oppose Additional Incentives for Big Pharma to Develop COVID-19 Treatments and Vaccines: A plurality of voters disagree the Big Pharma should get additional incentives for developing COVID-19 Treatments and Vaccines.

CUTTING THROUGH BIG PHARMA’S R&D RHETORIC

Big Pharma routinely tries to justify drug price hikes by pointing to research and development (R&D). The truth is:

Price Hikes Aren’t Connected To Drug Improvements: Drug companies hiked prices on seven popular drugs in 2017 and 2018 with no evidence that the drugs had been improved, resulting in $5.1 billion in increased costs.
Big Pharma Puts Profits Before R&D: Big Pharma used a windfall from the Tax Cuts and Jobs Act of 2017 to line shareholders’ pockets, rather than invest in R&D. In fact, the single-year increase in payouts to Wall Street and shareholding Big Pharma board members and executives was 17 times larger than the increase in R&D spending.
The Industry Is Thriving While Millions Are Struggling: 12 of the largest Big Pharma companies reported expectation-besting earnings for the first quarter of 2020 after hiking prices on American patients.

Read more on CSRxP’s survey HERE.

Big Pharma is busting profit and revenue expectations and receiving billions of dollars in research funding from taxpayers while millions of Americans are struggling. Engaging in price hikes during a pandemic, while receiving billions of dollars from taxpayers to help develop COVID-19 treatments, demonstrates why policymakers must act to hold Big Pharma accountable. Americans are looking for their elected officials to support solutions to hold drug companies accountable for their price-gouging behavior and anti-competitive tactics.