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FACT SHEET: Taking Action To Reduce Drug Prices Will Not Harm Innovation

By June 14, 2021No Comments

Protect Our Care Releases New Fact Sheet As Part of Lower Rx Summer

Today, Protect Our Care is kicking off Week 2 of Lower Rx Summer with a fact sheet debunking one of Big Pharma’s most powerful scare tactics: that any meaningful legislation to reduce drug prices will harm the development of new medications. Throughout the week, Protect Our Care will host events and release additional research to push back on Big Pharma’s biggest lies.  

Protect Our Care recently announced Lower Rx Summer as part of The Campaign to Reduce Drug Prices. Lower Rx Summer consists of themed weeks of action to demonstrate the urgent need for legislation to lower drug prices principally by giving Medicare the power to negotiate with drug companies for lower prices for all Americans. 

Remaining Theme Weeks for Lower Rx Summer

Week 2 (June 14): Pushing Back on Big Pharma’s Lies

Week 3 (June 21): How High Drug Prices Hurt Seniors

Week 4 (June 28): How High Drug Prices Hurt Women

Week 5 (July 5): How High Drug Prices Hurt People with Disabilities

Week 6 (July 12): How High Drug Prices Hurt People of Color

Week 7 (July 19): How High Drug Prices Hurt Small Businesses

Week 8 (July 26): How High Drug Prices Hurt Children

Fact Sheet: Taking Action To Reduce Drug Prices Will Not Harm Innovation

As Big Pharma prepares to fight upcoming legislation to lower drug prices, it is ramping up some of its most powerful scare tactics: that if prices were regulated through Medicare negotiation and other reforms, patients would lose out on lifesaving new drugs. That argument is simply false. In reality, high U.S. drug prices far exceed what is necessary to fund research and development. Instead, drug companies use price hikes to reward CEOs and shareholders. Moreover, research and development is heavily subsidized by taxpayers. 

KEY POINTS

  • Americans pay more for prescription drugs than anyone in the world. On average, Americans pay nearly three times more for medications than people in 32 other countries. 
  • Drug prices continue to skyrocket as profits are higher than any other industry. Big Pharma is enjoying record profits and breaking records for the money it’s spending on K Street lobbyists to block any legislation to lower prices for patients. In January 2021, drugmakers hiked the price of nearly 1,000 drugs, with increases far outpacing inflation. Research shows that drug companies could lose $1 trillion in sales and still be the most profitable industry. 
  • Higher profits do not correspond with increased research & development. Drug companies saved billions thanks to former President Trump’s tax bill. Instead of making meaningful investments in research and development, drug companies rewarded their executives and shareholders. 
  • Price hikes rarely correspond with increased clinical value. Time and again, drug companies hike the prices of drugs without any added benefit to patients. 
  • Taxpayers subsidize the creation of new drugs. Americans are being charged twice for high drug costs: first, as taxpayers funding research and development, and then again at the pharmacy counter. 
  • The development of COVID-19 vaccines were largely funded by taxpayers, not pharmaceutical companies. More than $19 billion in government funding has been invested in COVID-19 vaccines.

For the full fact sheet, click here