Senators grilled Big Pharma CEOs Joaquin Duato, Robert Davis, and Chris Boerner on Drug Pricing

During a Senate committee hearing on Thursday, the CEOs of three big drugmakers faced sharp criticism from lawmakers over the exorbitant cost of prescription drugs in the United States. Senators heard testimony from Joaquin Duato of Johnson & Johnson, Robert M. Davis of Merck, and Christopher Boerner of Bristol Myers Squibb. The hearing was held shortly after the Biden administration initiated drug price negotiations for the ten most expensive medications for Medicare beneficiaries. All three drugmakers have filed lawsuits against the federal government to prevent the negotiations, which are a provision of the Inflation Reduction Act.

In 2024, Johnson & Johnson CEO Joaquin Duato was ranked #32 among the Best CEOs In The World, followed by Robert M. Davis of Merck (No. 66) and Christopher Boerner of Bristol Myers Squibb (No. 104). The high cost of prescription drugs is causing many Americans to be unable to afford the medicines they need to survive. The 10 medications selected to undergo negotiations are:

1. Eliquis, a blood thinner
2. Xarelto, a blood thinner
3. Januvia, a diabetes drug
4. Jardiance, a diabetes drug
5. Enbrel, a rheumatoid arthritis drug
6. Imbruvica, a drug for blood cancers
7. Farxiga, a drug for diabetes, heart failure, and chronic kidney disease
8. Entresto, a heart failure drug
9. Stelara, a drug for psoriasis and Crohn’s disease
10. Fiasp and NovoLog, for diabetes

Five of the 10 drugs up for negotiations — blood thinners Eliquis and Xarelto, diabetes drug Januvia, blood cancer drug Imbruvica and arthritis drug Stelara — are made by one of the three companies. The CEOs have justified the high costs of medications by claiming that they are based on the value they provide to patients. They also pointed out that the higher prices allow patients in the United States to access the medications years before people in other countries.

For instance, Bristol Myers Squibb charges patients $7,100 per year for blood-clot drug Eliquis in the U.S., while the same product can be purchased for $900 in Canada and just $650 in France, Vermont Sen. Bernie Sanders, an independent, said.

“Does Bristol Myers Squibb make a profit selling Eliquis for $900 in Canada,” Sanders asked Boerner, the company’s CEO Christopher Boerner.

“Yes, we make a profit,” Christopher Boerner of Bristol Myers Squibb said.

“Will you commit to reducing the list price in the U.S. to the price in Canada?” Sanders asked.

In response, Boerner said, “We cannot make that commitment.” He cited the relative accessibility of drugs in the U.S. compared to Canada.

“In Canada, medicines are generally made less available and it takes oftentimes considerably longer for them to be made available,” Boerner added.

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