September 12, 2024 Press Releases

RELEASE: Patients For Affordable Drugs Files Patient-Focused Amicus Brief Defending The Inflation Reduction Act Against Big Drug Companies’ Challenges

 

P4AD Counters Industry’s Legal Arguments, Recounts The Sordid History Of Big Pharma’s Opposition To Medicare Negotiation And Tells The Court Of The IRA’s Positive Impact On Millions Of Patients 

 

WASHINGTON D.C. — Patients For Affordable Drugs today filed a 30-page amicus brief in the Third Circuit Court of Appeals in cases brought by pharmaceutical giants Bristol Myers Squibb (BMS), Janssen, and AstraZeneca. The brief vigorously defends Medicare’s new authority to negotiate prescription drug prices under the Inflation Reduction Act. It counters coordinated legal assaults from the pharmaceutical industry aimed at overturning the will of the American people by blocking the implementation of the landmark reform in order to maintain drug companies’ unfettered monopoly power and keep prices high at the expense of patients and all Americans.

The patient-centered amicus brief emphasizes the meaningful relief being delivered to millions of patients through the Inflation Reduction Act, and the historic nature of the victory achieved when Congress granted Medicare the authority to negotiate lower drug prices, ending a 22-year special loophole written by and for Big Pharma. It recounts for the court the sordid history of Big Pharma’s influence peddling that led to the industry’s unique exclusion from having to negotiate directly with Medicare. It rebuts myths from pharmaceutical companies about the law’s impact on patient access and makes clear that the IRA both lowers prices and protects future innovation. The brief also calls out and counters arguments made to the Court by groups posing as representatives of patients, when in fact they are funded by, represent, or are beholden to industry.

“For two decades, Big Pharma has treated Medicare as its personal ATM, price-gouging patients and taxpayers without restraint,” said Merith Basey, Executive Director of P4AD. “Our amicus brief exposes Big Pharma’s baseless legal claims already spurned by other courts without exception and demonstrates how Medicare negotiation is a win for patients and American taxpayers. By spotlighting the lived experiences of patients forced to pay exorbitantly high drug prices and the relief coming from Medicare negotiation, we are ensuring the court hears directly from patients whose lives and well-being hang in the balance. Patients fought tirelessly for these reforms, and we will continue to defend them against Big Pharma’s multi-million dollar legal campaign aimed at blocking the will of the American people by stopping the successful implementation of the law.”

”As a former nurse navigator, I spent years helping cancer patients access life-saving treatments, but when I was diagnosed with chronic lymphocytic leukemia, I found myself facing the staggering $17,000 monthly cost for Imbruvica,” said Lynn Scarfuto, a patient advocate based in Herkimer, NY, featured in P4AD’s amicus brief. “I had to rely on financial assistance to cover this enormous expense and constantly feared losing that support. Now, with Medicare negotiation finally bringing down the price of Imbruvica, I can have peace of mind knowing the treatment keeping me alive will soon be more affordable.”

The brief underscores how Medicare price negotiation will deliver transformative savings to other patients including;

  • Aly Elbaga, an 84-year-old retiree from New Jersey whose prescription drug costs, including for Eliquis, account for nearly half his monthly income. Instead of enjoying his well-earned retirement, Aly cannot afford vacations or other leisure activities, and he struggles even to purchase new clothing, shoes, or other necessities. Beginning in 2026, the price of Eliquis will be reduced by 56 percent.

  • Trevor Watts, a 62-year-old retiree was diagnosed with type 2 diabetes and prescribed Farxiga, which cost him as much as $161 for a 30-day prescription. Due to this price tag, Trevor has had to delay trips to visit family, visits to the dentist, and repairs on a three-year-old leak in his roof. Beginning in 2026, the list price of Farxiga will be reduced by 68 percent.

The brief highlights that the first round of negotiations is expected to save Medicare patients on these drugs $1.5 billion in out-of-pocket costs in the first year alone, with taxpayers saving an additional $6 billion. It emphasizes how the drug price reforms in the Inflation Reduction Act, particularly Medicare negotiation, will provide more affordable access to innovative, life-saving treatments for millions of Americans who depend on Medicare.

P4AD’s filing also addresses claims by pharmaceutical companies and their allies that misrepresent the Inflation Reduction Act’s impact on drug innovation and patient access. The brief explains how the IRA and the Medicare Negotiation Program strike a balance of lowering prices and costs while maintaining incentives for innovation.

BACKGROUND

  • Despite the pharmaceutical industry and its allies’ $372 million industry lobbying campaign to stop the Inflation Reduction Act, the reforms are already reining in prescription drug costs for millions of patients.

  • Unlike every other sector in health care where Medicare has a process to arrive at the prices it is willing to pay – such as doctor fees, hospital costs, and equipment – pharmaceutical companies have enjoyed a unique exemption from any form of direct negotiation with Medicare.

  • To date, federal judges have rejected seven consecutive lawsuits filed by the pharmaceutical industry and its allies to block implementation of Medicare negotiation.

You can find the full written amicus brief HERE.

 

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Patients For Affordable Drugs is the only national patient advocacy organization focused exclusively on policies that lower prescription drug prices. We empower and mobilize patients by amplifying their experiences with high drug prices to hold those in power to account and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4AD does not accept funding from organizations that profit from the development and distribution of drugs. To learn more, visit PatientsForAffordableDrugs.org.

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Patients For Affordable Drugs is the only independent national patient organization focused exclusively on achieving policy changes to lower the price of prescription drugs.