Committee Releases Additional Staff Reports on Skyrocketing Drug Prices for Day 2 of Landmark Hearings with CEOs

Oct 1, 2020
Press Release
Price Increases Tied to Revenue Goals Instead of R&D, Companies Targeting Biggest Price Hikes for U.S.

Washington, D.C. (Oct. 1, 2020)—Today, Rep. Carolyn B. Maloney, the Chairwoman of the Committee on Oversight and Reform, released three new staff reports in addition to two staff reports released yesterday as part of the Committee’s landmark back-to-back hearings this week with drug company CEOs on the skyrocketing prices of prescription drugs.

 

“Yesterday’s hearing with drug company CEOs was groundbreaking, and we expect even more revelations today,” said Chairwoman Maloney.  “Internal documents obtained during our sweeping investigation show that drug companies are taking full advantage of the federal law that currently prohibits Medicare from negotiating directly with drug companies to lower prices.  Drug companies are targeting the United States for their biggest price increases in the entire world, bringing in tens of billions of dollars in revenues, making astronomical profits, and rewarding their executives with lavish compensation packages—all without any apparent limit on what they can charge.”

 

Yesterday, in conjunction with testimony from the top executives from Celgene, Bristol Myers Squibb, and Teva, the Committee released two staff reports and accompanying document packets:

 

  • The first staff report described the actions of Celgene and Bristol Myers Squibb in repeatedly raising the price of Revlimid, which treats multiple myeloma and other forms of cancer.  The accompanying Document Packet is located here.

 

  • The second staff report described the actions of Teva in repeatedly raising the price of Copaxone, a drug used to treat multiple sclerosis.  The accompanying Document Packet is located here.

 

Today, the Committee issued three additional staff reports in conjunction with testimony this morning from the top executives of Amgen, Novartis, and Mallinckrodt:

 

  • The third staff report describes the actions of Amgen in repeatedly raising the prices of two drugs:  Enbrel, which is used to treat rheumatoid arthritis and other painful inflammatory diseases; and Sensipar, which is used to treat the effects of kidney failure and parathyroid cancer.  The accompanying Document Packet is located here.

 

  • The fourth staff report describes the actions of Novartis in repeatedly raising the price of Gleevec, a drug best known for treating chronic myeloid leukemia, a rare form of cancer of the blood and bone marrow, as well as other cancers and rare diseases.  The accompanying Document Packet is located here.

 

  • The fifth staff report describes the actions of Mallinckrodt in acquiring and pricing H.P. Acthar Gel, a drug used to treat a rare infant seizure disorder and other autoimmune and inflammatory disorders.  The accompanying Document Packet is located here.

 

Rep. Elijah E. Cummings launched the Committee’s wide-ranging investigation soon after becoming Chairman in January 2019.  In December, the House of Representatives passed H.R. 3, the Elijah E. Cummings Lower Drug Costs Now Act, to give Medicare the authority to negotiate directly with drug companies.

 

Today’s hearing with the top executives of Amgen, Novartis, and Mallinckrodt will begin at 10 a.m. ET and can be viewed on the Committee’s website or YouTube.

 

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116th Congress