DOSE OF REALITY: BIG PHARMA TO TESTIFY ON COVID-19 VACCINES AGAINST BACKDROP OF PANDEMIC PRICE HIKES AND BIG TIME PROFITS

Brand Name Drug Executives Should Commit to Affordable Pricing on COVID-19 Vaccines and Treatments

AN OPPORTUNITY TO HOLD BIG PHARMA ACCOUNTABLE
The U.S. House of Representatives Committee on Energy and Commerce is scheduled to hold a hearing with Big Pharma executives on Tuesday, February 23. Executives for brand name drug giants including Pfizer, Moderna, Johnson & Johnson, AstraZeneca and Novavax are slated to testify on “expanding availability of COVID-19 vaccines.”

During the hearing, lawmakers should ask Big Pharma executives to commit to responsibly and affordably pricing COVID-19 vaccines and treatments and keep in mind how brand name manufacturers have continued to engage in egregious price hikes, even at the height of the pandemic.

CONGRESS MUST ENSURE COVID-19 VACCINES & TREATMENTS ARE PRICED RESPONSIBLY & AFFORDABLY
A recent national survey, commissioned by CSRxP and conducted by Morning Consult found American voters overwhelmingly believe Big Pharma continues to put profits over people and that policymakers must ensure COVID-19 vaccines and treatments are responsibly and affordably priced.

•  87 Percent: An overwhelming 87 percent majority of voters agree policymakers must ensure patients can access COVID-19 medications at an affordable price and prevent pharmaceutical companies from setting unreasonably high prices and increasing those prices to boost profits. This includes more than two-thirds of American voters who “strongly agree.”
• 70/30: The important work being done by pharmaceutical companies on COVID-19 treatments and vaccines has not changed Americans’ desire to see policymakers hold the industry accountable on drug prices. When asked whether they agree more that:

1. Pharmaceutical companies put profits before people and the industry’s anti-competitive tactics and price-gouging have left too many Americans unable to afford the medications they need to survive and enjoy a strong quality of life. Now is the time for Congress to pass bipartisan, market-based solutions to hold drug companies accountable and lower prescription drug prices.

2. Pharmaceutical companies are doing everything they can to develop, produce and provide vaccines and treatments for COVID-19. Now is the wrong time to blame pharmaceutical companies for rising drug prices or advance policies that could restrict innovation.

70 percent of voters say Big Pharma continues to put profits over people compared to just 30 percent who say drug companies are doing everything they can.

BIG PHARMA’S PANDEMIC PRICE HIKES
During the hearing Tuesday, lawmakers must also remember that Big Pharma has continued to engage in egregious pricing practices while millions of Americans grappled with the economic impact of the pandemic.

Already this year, Big Pharma companies have raised prices on more than 800 drugs. And last year, Big Pharma companies hiked prices more than 1,000 times, including at the height of the pandemic in July 2020.

BIG PHARMA RIDING HIGH AMID PANDEMIC PROFITS
While Big Pharma continued to hike prices during the pandemic, while receiving billions of dollars from taxpayers to assist in the development of COVID-19 vaccines and treatments, the industry and its executives have also enjoyed relative boon times. A recent report on the pharmaceutical industry from research firm Evaluate Vantage lays out in detail the blockbuster year Big Pharma had in 2020.

From ballooning stock market valuations to sky-high profits on treatments developed with taxpayer investment to mega mergers, the report shows how 2020 was a banner year for Big Pharma while American patients faced unprecedented economic uncertainty and out-of-control drug prices. Read more on key takeaways from the report HERE.

Big Pharma executives, for example, sold nearly half a billion dollars’ worth of stock at the height of the pandemic amid surging valuations for their companies:

Stock Market Performance

• Despite doubts early during the pandemic, drug makers ended 2020 worth half a trillion dollars more than when the year started.
• Moderna added $34.8 billion to their stock market evaluation in 2020.
• Moderna sold over $300 million of their stock in 2020, as their evaluation soared.

• M&A transactions in 2020 totaled nearly $130 billion for Big Pharma.
• The year’s biggest deal was AstraZeneca’s $39 billion dollar bid for Alexion Pharmaceuticals.

And fourth quarter earnings from 10 of the largest pharmaceutical manufacturers also showcased how Big Pharma has continued to rake in expectation-busting profits fueled by repeated price hikes. Read more on drug companies’ Q4 profits and price-hiking behavior HERE, HERE, HERE and HERE.

Learn more about bipartisan, market-based solutions to hold Big Pharma accountable HERE.