GREED WATCH: Big Drug Companies’ Cries of Outrage Over Medicare Drug Price Negotiation Fail to Line Up With Reality As Democrats Deliver Real Savings to Seniors Nationwide

Executives Touted Robust Drug Pipelines and Increased Investment in R&D, After Drug Companies Forecasted Doom and Gloom, As Medicare Negotiated Prices Went Into Effect

Four years ago, Democrats fought Big Pharma tooth and nail to lower drug costs for seniors and won – even after the drug industry spent over half a billion lobbying against them. After decades of fighting the industry and Republicans, Democrats were the ones who gave Medicare the power to negotiate lower drug prices — saving seniors and taxpayers an estimated $6 billion this year on high-cost drugs for cancer, heart disease, diabetes, arthritis, and autoimmune disease. Since then, Republicans have done nothing but try to roll these savings back. Industry lobbyists and their Republican allies claimed negotiated prices would lead to drug development pipelines shrinking, yet six months into the Democrats’ lower, negotiated prices going into effect for 10 of the most costly drugs, drug company executives themselves are boasting about beating Wall Street expectations, raising annual outlooks, and the promise of cures to come. Every time the drug industry and their Republican allies want to pad their profits and stop Americans from seeing a penny of relief from the exorbitant cost of prescription drugs, they resort to the same misleading refrain about innovation, but the evidence speaks for itself: big drug companies can afford to take a hit – everyday Americans can’t.

Big Drug Companies’ Falsehoods Regarding Medicare Drug Price Negotiation Face Reality

We followed the 2026 H1 earnings reports of the 11 publicly-held manufacturers involved in the first round of Medicare drug price negotiations (including co-manufacturers), all of which sued to stop Medicare from negotiating drug prices individually or through a trade association:

• These 11 companies reported $335 billion in global revenue in only the first half of 2026, a $26 billion increase from the same time last year, and showered shareholders in $64 billion in dividend payments and stock buybacks.
• 10 out of the 11 companies increased their investment in research and development six months into the effectuation of lower, Medicare negotiated prices and 9 out of the 11 companies still saw an increase in total company revenue.
• Manufacturers reported an average 16 percent decline in global revenue for the drugs with Medicare negotiated prices, compared to the same time last year. In fact, sales for Jardiance and Eliquis skyrocketed by 38 percent and 17 percent.

Data obtained from SEC filings and quarterly reports. Shareholder compensation includes stock buybacks and dividends.
*This includes the nearly $15 billion Merck spent on acquisitions since January.
ᵃDKK converted to USD based on the average quarterly exchange rate of 6.558 kr to $1.00
ᵇGBP converted to USD based on the average quarterly exchange rate of £0.756 to $1.00
ᶜEUR converted to USD based on the average quarterly exchange rate of €0.877 to $1.00
Data obtained from SEC filings and quarterly reports, reflects change in revenue and spending at CER. NR=not reported
Bayer’s Crop Science division largely offset declines in drug revenue due to new generics.

Drugmakers Handily Absorbed the Impact of Negotiated Prices on 10 Drugs and Even Saw Increases in Overall Revenue, Beating Expectations and Raising Their Outlooks for The Year.

The publicly-held manufacturers of the ten drugs with lower, negotiated prices in effect as of January 1st, 2026 already collectively made over $720 billion in revenue on the drugs since their launch, more than recouping their investments in development. Six months into the negotiated prices, all 11 manufacturers beat Wall Street expectations for the reporting period. 10 out of the 11 manufacturers saw total revenues across their portfolio increase compared to the same time last year. Manufacturers reported only a 16 percent decline in global revenue on average for the drugs with Medicare negotiated prices, compared to the same time last year. In fact, sales for Jardiance and Eliquis skyrocketed by 38 percent and 17 percent respectively as more Medicare patients were finally able to afford the drugs than ever before. 7 of 11 of the companies outperformed expectations so much that they upgraded their forecast for the end of the year – all while seniors saved thousands of dollars on lifesaving drugs thanks to Democrats’ Medicare negotiated prices:

• “We have the strongest portfolio and pipeline in our 140 yr history, with 28 products and platforms that each deliver more than $1 billion in annual sales…With sales in the quarter of more than $25 billion, we are on track to meet our 2026 target of more than $100 billion in annual revenue for the first time in our company’s 140 yr history.” – Joaquin Duato, CEO of Johnson and Johnson, a company that sued the federal government to block Medicare drug price negotiations, on 7/17/26 boasting about industry record breaking revenues even after lower, negotiated prices went into effect for three J&J drugs: Stelara, Imbruvica, and Xarelto
• “Q2 continued Lilly’s strong momentum. We delivered robust revenue across all key products and major geographies. We raised our full-year annual guidance…Revenue grew 48% compared to Q2 2025. Our key products increased by almost $6.8 billion. Within key products, our oncology, immunology, and neuroscience medicines collectively grew 121% compared to the same quarter last year, as we continue to expand our presence across the portfolio.” –Dave Ricks, CEO of Eli Lilly, on 8/5/26 bragging about revenue growth without mentioning that sales for Jardiance skyrocketed by 38 percent after seniors saw lower, negotiated prices this year
• “We delivered another strong quarter with results continuing to highlight the underlying strength of our growth portfolio comprised of many products that are early in their life cycles. Our performance is also supported by disciplined investment in growth-oriented initiatives. Results were further bolstered by Eliquis. Based on this first half momentum and confidence in our second half outlook, we are raising our full year guidance for both revenue and adjusted diluted EPS.” –David Elkins, CFO of Bristol Myers Squibb, on 7/28/26 admitting that increase in sales of Eliquis as seniors saved from negotiated prices boosted their financial results

Data obtained from SEC filings and quarterly reports. NR=not reported
*For cross-marketed drugs, the calculation of the increase in global drug revenue was weighted by manufacturer according to sales.

Drugmakers Doubled Down On Innovation, Countering False Claims That Medicare Negotiation Undermines R&D.

Contrary to industry talking points, investment in research and development (R&D) has only increased each consecutive year since the passage of the Inflation Reduction Act. This year, 10 out of the 11 publicly-held manufacturers of drugs with lower, negotiated prices increased their investment in R&D and collectively acquired eight companies that focused on the development of small-molecule drugs. Recent evidence suggests the pipeline of small molecule drugs and other products are healthy and only improving. Many executives touted their drug pipelines on their calls and Wall Street analysts rarely asked about the impact of drug price negotiations in their business and investment decisions. While the industry lobbyists claimed Medicare negotiating prices would kill innovation, it appears the law might have actually spurred the companies’ investments in innovation, research and development:

• “We’ve more than doubled the number of phase II and phase III assets with blockbuster potential since 2022. Our pipeline’s also moving 25% faster, meaning we’re now in the upper quartile of our peers based on recent CMR benchmarks. We expect this trend to continue to improve.” –Tony Wood, Chief Scientific Officer of GlaxoSmithKline, on 7/28/26 highlighting major improvement in GSK’s drug development in the time since Medicare was given the power to negotiate drug prices
• “Notably, 22 products delivered double-digit sales growth and 17 products annualized at more than $1 billion based on second quarter sales. These results, including strong earnings and margin performance were achieved while we increased our investment in innovation, reflecting the sound financial structure of our business. That sound financial structure also gives us the flexibility to invest with discipline in both our internal pipeline and external innovation while supporting the long-term needs of the business.” – Robert Bradway, CEO of Amgen, on 8/4/26 demonstrating Amgen’s sales and ability to invest in research and development grew even as seniors saw savings on Amgen drug, Enbrel
• “In the first half of 2026, we invested $5.5 billion in internal and external R&D and returned $4.9 billion to shareholders via our quarterly dividend.” – Cecile Guegan, CFO of Pfizer, on 8/4/26 highlighting Pfizer’s 13 percent increase in R&D investment the same year seniors are saving on Eliquis thanks to Medicare drug price negotiations

Despite the GOP Giving Big Pharma A Huge Loophole to Escape Negotiation, Companies Are Lobbying Congress To Delay or Stop Seniors From Getting Lower Prices for More High-Cost Drugs.

Thanks to Trump and Republicans in Congress, Big Pharma landed a huge win that will allow them to bypass Medicare drug price negotiations and raise already high prices on drugs that millions of vulnerable Americans rely on. In granting this multibillion-dollar giveaway to drug companies, Republicans raised out-of-pocket costs for critical drugs that treat conditions such as cancer and hypertension. Many of the drugs that would be exempted under the new loophole are some of the most profitable drugs on the market and bestsellers for big drug companies. However, that was not enough to satisfy drug company greed. 

The drug industry is seeking even more carve outs for drugs that make up 58 percent of the prescription drug market and cutting edge genetic therapies. Instead of Medicare negotiating fewer drugs, Democrats want to expand Medicare drug price negotiations so everyone can benefit from these lower, negotiated prices. That’s because Democrats recognize that 2 in 5 Americans still can’t afford to take their prescription drugs as prescribed and are fighting to protect and expand Medicare price negotiation savings to everyone, regardless of where they get their insurance.

Data obtained from opensecrets.org