The CEOs of two major pharmaceutical companies, Merck and Johnson & Johnson, have voluntarily agreed to testify at an upcoming Senate hearing on high drug prices in the United States. This decision comes as lawmakers ramp up efforts to rein in healthcare costs for Americans.
The Senate Health, Education, Labor and Pensions Committee has scheduled a hearing for February 8 at 10 a.m. ET. Previously, the committee had planned to vote to subpoena the CEOs of J&J and Merck, Joaquin Duato and Robert Davis respectively, as both executives had declined earlier requests to appear at the hearing. If the subpoenas had been issued, it would have been the first time since 1981 that the committee took such action. However, the CEOs will now testify voluntarily, potentially avoiding the need for a subpoena.
In addition to the CEOs of Merck and Johnson & Johnson, the committee has also invited Bristol Myers Squibb CEO Chris Boerner and another unnamed pharmaceutical CEO to testify. The panel intends to ask each executive to explain why their companies charge substantially higher prices for medication in the United States compared to other countries.
The fight against high drug prices is one of the rare issues that has united both major political parties in recent years, although they have often supported different approaches to address the problem. Senator Bernie Sanders, who chairs the Senate Health panel, emphasized that the three companies in question manufacture some of the most expensive drugs sold in the U.S., including Merck’s diabetes drug Januvia, J&J’s blood cancer treatment Imbruvica, and Bristol Myers Squibb’s blood thinner Eliquis.
All three of the mentioned treatments will be subject to the first round of Medicare drug price negotiations. These negotiations are a key policy under President Joe Biden’s Inflation Reduction Act, which aims to make costly medications more affordable for seniors. The negotiations will establish new prices that will take effect in 2026. However, J&J, Merck, and Bristol Myers Squibb have all filed lawsuits to halt these talks.
Senator Bernie Sanders expressed hope that the CEOs of these major pharmaceutical companies will acknowledge the significant price discrepancies and collaborate to substantially reduce the prices charged to the American people for these and other prescription drugs. In response, a Merck spokesperson stated that they trust the hearing will be productive and contribute to the committee’s understanding of the pharmaceutical industry. The spokesperson also mentioned that the company had offered its U.S. president as a witness, as they believed this individual was better equipped to address questions about drug pricing. However, the committee declined this offer.
The decision of the CEOs of Merck and Johnson & Johnson to voluntarily testify at the Senate hearing on high drug prices is a significant development in the ongoing efforts to address healthcare costs in the United States. With the support of both major political parties, there is hope for progress in reducing the prices of expensive prescription drugs and making them more accessible to all Americans.
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