Merck announced it raked in $15 billion this quarter – a $450 million increase over last year – during their earnings report today. While they make billions, Americans pay exorbitantly high prices for prescription drugs. Merck opposes the Biden administration reforms that lower prescription drug prices and is one of the companies suing to kill Medicare price negotiations.
- During the call, CFO Caroline Litchfield bragged about the company’s growing profit margins saying, “We now expect revenue to be between $58.6 and $59.6 billion, an increase of $800 million at the midpoint.”
- Merck quietly announced it has rewarded its shareholders with $300 million in stock buybacks in just the past three months.
- Merck is suing the Biden administration to stop Medicare from negotiating lower drug prices for patients because it would endanger their massive profits.
- One of Merck’s most successful drugs, Januvia, has seen a 213 percent price increase since its launch and has made Merck nearly $50 billion. Januvia is among the top drugs with the highest Medicare spending, and is likely to be selected for negotiation in the coming years.
- Drug companies charge Americans prices up to four times higher than prices in other countries, forcing patients to cut pills and skip doses to make ends meet.
- Over 80 percent of voters support giving Medicare the power to negotiate, making it the most popular provision in the Inflation Reduction Act.
The Inflation Reduction Act brings down prescription drug costs for everyday Americans, especially seniors, by capping the price of insulin, giving Medicare the power to negotiate lower drug prices, and limiting the amount people have to pay each year for prescription drugs.
Read more about why Medicare needs the power to negotiate lower drug costs and the five drugs that tell the story, including Januvia, here.