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"Americans who have asthma and COPD should not be forced to pay, in many cases, 10 to 70 times more for the same exact inhalers as patients in Europe and other parts of the world," said the independent senator from Vermont.
Less than six months after launching a probe in the U.S. Senate into "the outrageously high prices" that asthma patients and others across the country pay for inhalers, Sen. Bernie Sanders celebrated the official start of a new program by one of the largest makers in the industry on Saturday to cap out of pocket costs at $35.
Sanders (I-Vt.), chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, said Saturday was "the first day of a new program instituted by the major pharmaceutical company Boehringer Ingelheim, which will allow people with asthma and COPD to purchase brand name inhalers at their local drugstore or pharmacy for only $35 dollars."
With the new cap, the company said in its announcement, eligible patients "who have had difficulty navigating the current healthcare system will now be able to afford the Boehringer inhalers they need."
Explaining its program, Boehringer said "the reduced out-of-pocket cost will be automatically applied at participating retail pharmacies for eligible patients with commercial insurance" and that more than 90 percent of pharmacies in the U.S. have agreed to participate in the program. "There are no forms to fill out or websites to go to—the discount happens electronically with no action required," said the company.
As Common Dreams reported in March, Combivent Respimat, one of Boehringer's inhaler products, previously carried a list price of around $500 in the U.S.—a number roughly 70 times what the company was charging for the same product in France, where patients could get the inhaler for just $7.
Sanders thanked Beohringer for finally instituting the program, which came after a sustained campaign by patient advocates and the investigation by the HELP committee.
"In my view, Americans who have asthma and COPD should not be forced to pay, in many cases, 10 to 70 times more for the same exact inhalers as patients in Europe and other parts of the world," Sanders said.
The committee's work led by Sanders triggered agreement from other large makers, namely AstraZeneca and GlaxoSmithKline, to initiate affordability programs as well.
"We look forward to AstraZeneca moving in the same direction—applying its $35 cap automatically at the pharmacy counter—in the next few weeks, and to GlaxoSmithKline following suit in the coming months," Sanders said Saturday. "We are waiting on word from Teva, the fourth major inhaler manufacturer, as to how they will proceed."
In April, President Joe Biden hosted a gathering at the White House where he credited Sanders and the HELP committee for spearheading the effort that led to the pharmaceutical companies caving under the public scrutiny. "Finally, we beat Big Pharma," Biden said.
Sen. Tammy Baldwin (D-Wis.), also a member of the HELP committee, championed the findings of the probe in March when the companies began to crack on the sky-high prices.
"We launched an investigation into big drug companies because the prices they were charging for inhalers just didn't add up," Baldwin said at the time. "And looks like we were right."
In his statement on Saturday, Sanders said the HELP committee wouldn't stop with inhalers as it continues "to do everything we can do to make sure that Americans no longer pay, by far, the highest prices in the world for prescription drugs."
"Americans who have asthma and COPD should not be forced to pay, in many cases, 10 to 70 times more for the same exact inhalers as patients in Europe and other parts of the world."
AstraZeneca announced Monday that it will cap out-of-pocket costs at $35 per month for U.S. inhaled respiratory medicines—becoming the second pharmaceutical giant to make that move since U.S. Sen. Bernie Sanders launched a probe in January.
The policy change—which will benefit patients with asthma and chronic obstructive pulmonary disease (COPD), including those who are uninsured and underinsured—is set to start in June, like the Boehringer Ingelheim decision announced earlier this month.
While welcoming the development, Sanders (I-Vt.) noted that it comes after the Senate Committee on Health, Education, Labor, and Pensions (HELP) that he chairs began investigating "the outrageously high cost of inhalers that 25 million Americans with asthma and 16 million Americans with COPD rely on to breathe."
"If AstraZeneca and Boehringer Ingelheim can cap the cost of inhalers at $35 in the United States, these other companies can do the same."
"In my view, Americans who have asthma and COPD should not be forced to pay, in many cases, 10 to 70 times more for the same exact inhalers as patients in Europe and other parts of the world," declared Sanders. "Since we launched that investigation, I have had conversations with all of the CEOs of the major manufacturers of these products."
The senator said he was "very pleased" with AstraZeneca's announcement, calling it "a very positive step which will help save Americans thousands of dollars a year on the inhalers they need to breathe."
The panel's probe—supported by Sens. Tammy Baldwin (D-Wis.), Ben Ray Luján (D-N.M.), and Ed Markey (D-Mass.)—also targets GlaxoSmithKline (GSK) and Teva. Sanders called on the pair to "take similar action," arguing that "if AstraZeneca and Boehringer Ingelheim can cap the cost of inhalers at $35 in the United States, these other companies can do the same."
Sanders pledged that his committee "will continue to do everything we can do to make sure that Americans no longer pay, by far, the highest prices in the world for prescription drugs."
In AstraZeneca's announcement, CEO Pascal Soriot called for federal action, saying that "we remain dedicated to addressing the need for affordability of our medicines, but the system is complex and we cannot do it alone. It is critical that Congress bring together key stakeholders to help reform the healthcare system so patients can afford the medicines they need, not just today, but for the future."
AstraZeneca highlighted that the cap will apply to medicines including Airsupra, Bevespi Aerosphere, Breztri Aerosphere, and Symbicort—which cost up to $645—and that the company "substantially reduced the list price" of Symbicort at the beginning of the year.
The Federal Trade Commission (FTC) in November disputed more than 100 patents held by pharmaceutical companies that make asthma inhalers, EpiPens, and other products listed in a Food and Drug Administration database, including Symbicort.
Acknowledging AstraZeneca's cap decision, FTC Chair Lina Khan said on social media Monday, "I urge the other firms whose patents FTC challenged—including GSK and Teva—to withdraw their improperly listed patents and drop costs for Americans."
"The court has rejected AstraZeneca's self-serving arguments and essentially said the company didn't have a leg to stand on," said one advocate.
The president of consumer advocacy group Public Citizen on Friday urged Big Pharma to "drop its far-fetched lawsuits and accept that the era of Medicare price negotiation is here to stay," after a federal judge in Delaware rejected drug company AstraZeneca's case challenging provisions under the Inflation Reduction Act.
AstraZeneca Pharmaceuticals LP et al. v. Becerra et al. is one of several cases that drug companies have filed against the federal government seeking to block Medicare from negotiating drug prices on behalf of patients—as the governments of every other high-income country do, with Americans paying as much as four times what people in countries such as the United Kingdom and Canada pay for their medications.
The company claimed that the Centers for Medicare & Medicaid Services violated the Administrative Procedure Act.
Chief Judge Colm Connolly in the U.S. District Court for the District of Delaware ruled that "because AstraZeneca's participation in Medicare is not involuntary, AstraZeneca does not have a protected property interest in selling drugs to the government at prices the government will not agree to pay. Accordingly, AstraZeneca's due process claim fails as a matter of law."
"Drug corporations have no constitutional right to price gouge Medicare, contrary to Big Pharma's claims."
In other words, said Patients for Affordable Drugs (P4AD), the judge emphasized that "the company's desire for higher prices does not supersede the government's ability to protect patient interests."
"On behalf of patients across this country, we are encouraged but not surprised that the court has rejected AstraZeneca's self-serving arguments and essentially said the company didn't have a leg to stand on," said Merith Basey, the group's executive director. "This ruling sends a clear message that Big Pharma's greed cannot continue to be prioritized over patients' well-being and underscores the importance of Medicare negotiation to begin to rein in exorbitant drug prices."
"The judge's decision reaffirms that pharmaceutical companies like AstraZeneca have the option to participate in Medicare voluntarily, accepting slightly lower negotiated prices if they wish to access a market worth billions," added Basey. "Once again, a judge has reviewed drug company claims, and the result has gone against the drug company and for the people of the United States."
AstraZeneca's drug Farxiga, which is used to treat Type 2 diabetes, was one of 10 medications selected by the Biden administration last year for the first round of negotiations under the Inflation Reduction Act's (IRA) Medicare Drug Price Negotiation Program. In 2022, the company reported nearly $4.4 billion in revenue from Farxiga.
P4AD said Connolly's ruling was a victory for patients like Karen, a Pueblo West, Colorado resident.
"I am on Medicare and was prescribed Farxiga with a bill of over $600 for a three-month supply. I am on a fixed income and can no way afford that amount of money," Karen told the group, which has signed onto amicus briefs in seven different cases regarding Medicare price negotiations.
Tony Carrk, executive director of Accountable.US, noted that Big Pharma previously spent millions lobbying against the drug price negotiation provisions in the IRA.
“Big drug company executives are stopping at nothing to price gouge Americans and pad their profits," said Carrk. "Now they are trying to do it by clogging the judicial system with meritless lawsuits. Today's ruling is a victory for the Biden administration's historic cost-lowering program and for seniors who need lower prescription drug costs."
Robert Weissman, president of Public Citizen, pointed out that the IRA's restraints on Big Pharma's price gouging are only "modest" but will make a difference to seniors, saving $100 billion over a decade.
"In response, Big Pharma has launched a flurry of preposterous lawsuits against the Medicare drug negotiation provisions in the Inflation Reduction Act," said Weissman. "As Public Citizen has argued in amicus briefs, drug corporations have no constitutional right to price gouge Medicare, contrary to Big Pharma's claims."
Weissman said his expects that with seven pending cases, "today's decision is the first of many rejecting Big Pharma's attack on the act's effort to rein in exorbitant prescription drug prices."