How Pharma Lost Its Edge in Washington
Major drug company CEOs are about to appear before Congress to address drug pricing—for the first time ever.
For decades drug manufacturers in the U.S. have been able to set prices virtually at will. They introduce new pharmaceuticals with five- or even six-figure price tags, while they raise the prices of existing drugs as much as 10 percent a year. Unlike their counterparts in the airline or auto industries, most leaders of these companies have never appeared before Congress. Until now.
The heads of pharma giants Merck, Pfizer, and Sanofi, among others, will face members of the Senate Finance Committee on Feb. 26, the opening move in what promises to be a long chess match between the prescription drug industry and Congress over how to rein in prices.