In case you missed it, Big Pharma is at it again, working overtime to pass a
policy that would cost seniors and taxpayers billions of dollars in higher
prescription drug prices as a rider on the reconciliation tax bill being
considered in Congress.
June 6, 2025
TOPLINE
In case you missed it, Big Pharma is at it again, working overtime to pass a
policy that would cost seniors and taxpayers billions of dollars in higher
prescription drug prices as a rider on the reconciliation tax bill being
considered in Congress.
In the version of the legislation recently passed by the U.S. House, Big
Pharma was able to successfully insert a provision based on a bill called “The
Optimizing Research Progress Hope And New (ORPHAN) Cures Act.” This misguided
legislation would help brand name drug manufacturers keep prices high on a
whole category of their products.The nonpartisan Congressional Budget Office
(CBO) estimates this pharma-backed policy would cost seniors and taxpayers a
whopping $4.8 billion in higher prescription drug spending.
Read more about the brand name drug companies that stand to gain from this
policy that would impose higher prescription drug prices on seniors and
taxpayers, and why Big Pharma’s innovation arguments don’t hold up to scrutiny
HERE
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.
On Wednesday, lawmakers reintroduced legislation in the U.S. Senate, The
Biosimilar Red Tape Elimination Act (S.1954
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), that would remove regulatory barriers to foster greater competition from
more affordable alternatives to high-priced biologic medications.
“CSRxP commends Senators Lee (R-UT), Paul (R-KY), Hassan (D-NH) and Luján
(D-NM) for supporting greater competition in the prescription drug marketplace
with the reintroduction of the bipartisan Biosimilar Red Tape Elimination Act,”
said CSRxP executive director Lauren Aronson in a statement. “By eliminating
outdated FDA requirements, this bipartisan, market-based solution will help
bring more biosimilars to market more quickly, fostering greater competition
from more affordable alternatives to high-priced brand name drugs to help lower
prices for patients, taxpayers and the U.S. health system.”
Read CSRxP’s full statement on the reintroduction of The Biosimilar Red Tape
Elimination ActHERE
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. And read more about how biosimilar competition delivers significant savings
for American patients and the U.S. health care systemHERE
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.
QUOTE OF THE WEEK
“Americans are missing out on lower drug prices thanks to bureaucratic red
tape that protects big pharma monopolies. Many consumers would choose a cheaper
generic-brand version of their medications, but technicalities from Congress
have kept these out of reach. Our legislation will cut the red tape to bring
drug prices down, break up the big pharma monopolies, and let Americans make
their own medication choices.”
- U.S. Senator Mike Lee (R-UT)
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DATA POINTS YOU SHOULD KNOW
$422.9 Billion
The estimated healthcare system savings with accelerated entry of generic and
biosimilar drugs in the U.S. market, according to ananalysis
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from the Association for Accessible Medicines.
TWEETS OF THE WEEK
@RealTahirAmin <[link removed]>:
“Fact: Brand name drugs are responsible for 84% of total drug costs in the U.S
despite accounting for only 8% of drugs dispensed. By gaming the patent system,
drug companies maintain their monopolies and high prices on these branded drugs
for longer than should be allowed.”
@P4ADNOW <[link removed]>: “The ORPHAN Cures
Act isn’t about protecting patients – it’s about protecting Big Pharma’s
profits. TAKE ACTION against Big Pharma greed by sending a letter to your
Senator telling them to STOP THE ORPHAN CURES ACT.”
ROAD TO RECOVERY
Washington Examiner: House Lawmakers Push To Increase Drug Price Transparency
In Advertising
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A bipartisan pair of House lawmakers are pressing for more price transparency
for prescription drugs, introducing a bill on Thursday that would require
pharmaceutical companies to disclose their cost in all direct-to-consumer
advertising… Pharmaceutical companies spent nearly $14 billion on
direct-to-consumer drug advertising in the U.S. in 2023, according to a report
from the bipartisan Campaign for Sustainable Rx Pricing, which has endorsed the
legislation.
PHARMA’S POOR PROGNOSIS
Axios: 1 Big Thing: Megabill’s Little-Noticed Drug Price Changes
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The House GOP reconciliation bill includes a provision that would expand the
number of drugs exempt from Medicare drug price negotiations. Why it matters:
Backers say the provision would encourage innovation to treat rare diseases,
but drug pricing advocates say it amounts to a handout to pharmaceutical
companies. Driving the news: The bill would expand an existing carve-out for
"orphan" drugs that treat rare diseases. Currently, orphan drugs that treat one
rare disease are exempt from Medicare drug price negotiations. The bill would
broaden that to include drugs that treat two or more rare diseases or
conditions.
The Tennessean: Prescription Drugs Are More Expensive Than Ever. Here’s How To
Beat The Costs
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Today, we have a dozen new drugs that hit the market with manufacturer price
tags at over $1 million for a one-time treatment. In Tennessee, where the
average income per year is around $36,000, that’s simply unaffordable … Why do
prescription drugs cost so much? First, drug prices have consistently outpaced
general inflation. Since 1985, overall drug prices have risen at rates three
times faster than inflation. By 2024, drug prices were more than 127% higher
compared to the cost of all other commodities. So, it’s no surprise that pharma
leads the health industry with an average profit margin of around 15%, compared
to 1-3% for not-for-profit insurers like us, and roughly 5% for carmakers.
Second, drug companies spend billions of dollars every year on advertising and
promotion, which drives up the use of pricey treatments.
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