Big Pharma CEOs Tell Senators They Won't Reduce Drug Costs Without Other Reforms

The chief executives of seven pharmaceutical companies defended their pricing and business policies at a hearing of the Senate Finance Committee this week, reports USA Today . Although the CEOs agreed drugs should be more affordable for Americans, they were hesitant to commit to price reductions without additional reforms. Their argument was that other contributors, like pharmacy benefit managers who negotiate discounts and insurance coverage, play a bigger role in how much consumers pay. Merck CEO Kenneth Frazier described pricing as "complex and interdependent," and noted addressing cost, access, and affordability would require bringing "all the parties around the table." Patents grant drug companies exclusive rights to sell a drug for several years before generic companies can make competing versions. Sen. John Cornyn (R-Texas) stated, "I support drug companies recovering a profit," but "at some point, that patent has to end, that exclusivity has to end," so Americans have access to more affordable generics. Other lawmakers questioned whether Americans are subsidizing the cost of new drug development for the rest of the world, through higher list prices charged to U.S. consumers compared to other developed countries, and taxpayer-funded research grants that cover early scientific discoveries that might lead to new medications.