Why it matters: This article discusses a report released by Senator Bernie Sanders criticizing the high prices of drugs in the U.S. compared to other countries and the excessive executive pay of major drug manufacturers. The report highlights how these companies prioritize stock buybacks and dividends over research and development (R&D).
What they are saying: The report emphasizes that Americans pay significantly more for life-saving drugs than citizens of other countries. It showcases specific examples of drugs like Keytruda and Eliquis, which cost much more in the U.S. than in Germany or Japan. The report accuses Johnson & Johnson, Merck, and Bristol Myers Squibb of prioritizing profit over finding new cures.
The big picture: The report reveals the flawed business model of the pharmaceutical industry, focusing on the excessive prices of prescription drugs in the U.S. compared to other nations. It calls attention to the large profits made by pharmaceutical companies and the high compensation packages of their CEOs, while many Americans struggle to afford their prescribed medications.
What to watch: Senators have introduced bills, such as the Modernizing and Ensuring PBM Accountability (MEPA) Act, to address the issue of high prescription drug prices. These bills aim to increase transparency, accountability, and competition among pharmacy benefit managers (PBMs). It will be interesting to see if these legislative efforts lead to any changes in the pharmaceutical industry and the pricing of drugs.
My take: The report presented by Senator Sanders sheds light on the inequality and excessive costs associated with prescription drugs in the U.S. It is disheartening to see pharmaceutical companies prioritize profits and executive compensation over the development of new cures and the well-being of patients. It is crucial for lawmakers to take action and implement reforms to address this issue and ensure that essential medications are accessible and affordable for all Americans.
