Patient Advocates Rap 'Greedy' PhRMA IRA Lawsuits

As consumers struggle with soaring drug prices, AstraZeneca Q3 profits doubled to $1.37 billion.

The pharmaceutical industry is enjoying record profits while simultaneously pursuing lawsuits challenging the Biden administration's efforts to make drugs affordable for Medicare beneficiaries, a patient advocacy group says.

Jeremy Funk, a spokesman for Accountable.US , a center-left advocacy group and self-described "nonpartisan watchdog group," notes that pharmaceutical giant AstraZeneca saw profits double over the past nine months and this week reported Q3 earnings of $1.37 billion.

In stark contrast to reports of record profits, Funk notes that 3-in-10 Americans say they can't afford drugs. That has not stopped leading drug makers, including AstraZeneca and trade association PhRMA, from challenging drug price negotiations mandated in the Inflation Reduction Act.  

"Another day, another drug company brags of billion-dollar profits while suing to stop the historic Biden law working to lower drug costs for struggling seniors," Funk says. "Big Pharma and their lackeys in Congress are fighting tooth and nail to undo the Inflation Reduction Act's Medicare Drug Price Negotiation Program so that companies can keep squeezing maximum profits out of seniors, including many choosing between food and medicine."

AstraZeneca's Farxiga, used to treat type 2 diabetes, heart failure and chronic kidney disease, is one of the first 10 drugs selected for the initial negotiations. The presumedly lowered prices are projected to save nearly 19 million Medicare Part D enrollees $400 a year by 2025.

Drug makers claim that high prices are necessary to fund research and development, and that Medicare's negotiation power will force drugmakers to reduce spending on research.

Accountable.US says its own research has previously found that the five-biggest U.S.-based pharmaceutical companies spent $112 billion in R&D from 2019 through 2021, and $125 billion on stock buybacks and dividends over the same period.

"Based on their own earnings reports, it's clear these price hikes are just a way to extract more money from patients in need and redistribute it to wealthy shareholders," Funk says.

AstraZeneca and PhRMA on Thursday did not respond to HealthLeaders' request for comment.

"Too many corporations motivated by greed have jacked up prices despite enormous profits, and Big Pharma is among the worst offenders," Funk says. "Congressional Republicans should be celebrating the historic Biden law allowing Medicare to negotiate cheaper drug prices, not helping pharma CEOs and lobbyists undo it in pursuit of more political donations." 

Accountable.US is funded by the social activist private equity New Venture Fund.