The powerful pharmaceutical industry is doing its best to hold back the tide, but mounting public outrage over excessive pricing of both old and new drugs may prompt government intervention. The controversy is already playing out on the presidential campaign trail and on Capitol Hill where House Democrats are demanding Valeant Pharmaceuticals provide documentation to justify the soaring costs of its drugs.
Hillary Clinton’s campaign purchased ads in Iowa and New Hampshire this week on the topic of her role in forcing Turing Pharmaceuticals, to partially roll back massive price increases. Clinton accused the company’s 32-year old CEO, Martin Shkreli, of “price gouging” on Twitter.
Billionaire Donald Trump, the GOP presidential frontrunner, also jumped into the act, calling Shkreli a “spoiled brat” for boosting the cost of the drug, Daraprim, from $13.50 to $750 a pill.
Shkreli, a hedge fund manager, has become the new symbol of industry greed and insensitivity. He recently announced he would cut back the price, without saying by how much.
At one time critics focused much of their wrath on Gilead Sciences Inc., the California based pharmaceutical company that charged as much as $1,000 a pill for the new wonder drug Sovaldi for treating the potentially lethal Hepatitis-C virus. The cost of the drug blew a hole in the budgets of the Department of Veterans Affairs, Medicare and Medicaid and forced federal and state officials to ration the availability of the popular drug.
Now industry critics have two easy targets to choose from – including Turing and Valeant, a major firm that jacked up the price of two heart medicines three to six fold the same day it acquired the rights. In both cases, the companies weren’t marketing newly developed drugs, which may have cost tens of millions of dollars to develop but drugs that have been on the market for many decades – making it far more difficult to justify a huge increase in price.
All 18 Democratic members of the House Committee on Oversight and Government Reform have asked the GOP chairman, Rep. Jason Chaffetz (R-UT), to subpoena Valeant and compel company officials to provide documents justifying its price increases, according to the Washington Post. Democrats want Shkreli and Michael Pearson, the Valeant CEO, to testify before the committee.
The company earlier this month refused to respond to a request from Democratic Rep. Elijah E. Cummings of Maryland and Sen. Bernie Sanders of Vermont to explain the decision to raise the prices of Nitropress, a drug used to treat congestive heart failure, and Isuprel, a drug used to treat irregular heart rhythms.
PhRMA, the prescription drug industry’s main lobbying arm, warned recently that proposals like those of Clinton and Sanders to cap skyrocketing drug costs “would restrict patients’ access to medicines, result in fewer new treatments for patients, cost countless jobs across the country and end our nation’s standing as the world leader in biomedical innovation.”