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.
On Wednesday, lawmakers reintroduced legislation in the U.S. Senate, The Biosimilar Red Tape Elimination Act (S.1954), 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 “By eliminating outdated FDA requirements, this bipartisan, market-based solution will help bring more biosimilars to market more quickly, fostering greater competition from more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 Act HERE. And read more about how biosimilar competition delivers significant savings for American patients and the U.S. health care system HERE.
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)
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 an analysis from the Association for Accessible Medicines.
TWEETS OF THE WEEK
@RealTahirAmin: “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: “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
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
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
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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