Washington, D.C. — All 10 drug companies announced they entered into agreements with Medicare to negotiate lower drug prices. Some of these drugs are the most expensive in the U.S., with patients on Medicare paying an average of $6,500 per year out-of-pocket. Together, these drugs are responsible for about 20 percent of Part D spending and have made a combined $493 billion in global revenue.
This is a historic milestone in lowering drug prices through finally empowering Medicare to negotiate on behalf of seniors, which was enacted as part of the Inflation Reduction Act championed by President Biden and Democrats in Congress. This comes as some of these big drug companies are suing in the courts to try to stop Medicare from negotiating lower drug prices in order to protect their outrageous profits. In response, Protect Our Care Chair Leslie Dach issued the following statement:
“After years of a broken system where drug companies get to pull the strings and charge whatever they want for lifesaving medications, seniors will get some long-overdue relief. Thanks to the leadership of President Biden and Democrats in Congress, negotiations are finally underway. This first round of prescription drugs are some of the most expensive on the market and have lacked competition for years. It’s time for their prices to be affordable to patients. Even as drug companies try to go to court to stop the negotiation process, it is clear that the Biden administration is not backing down to make prescription drugs affordable for everyone.”
Companies with drugs that have entered into negotiation agreements are:
- AstraZeneca, which manufactures Farxiga to treat diabetes, heart failure, and kidney disease
- Boehringer Ingelheim, which manufactures Jardiance to treat diabetes
- Bristol Myers Squibb, which manufactures Eliquis to treat blood clots
- Merck, which manufactures Januvia to treat diabetes
- Amgen, which manufactures Enbrel to treat rheumatoid arthritis, psoriasis, and psoriatic arthritis
- Novartis, which manufactures Entresto to treat heart failure
- Novo Nordisk, which manufactures Fiasp/NovoLog to treat diabetes
- Pharmacyclics, owned by Abbvie, which manufactures Imbruvica to treat leukemia and lymphoma
- Johnson & Johnson, which manufacturers Stelara to treat psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis
- Janssen Pharmaceuticals, owned by Johnson & Johnson, which manufactures Xarelto to treat blood clots
Read more about these high-cost drugs here.