Including comcast. Are you thinking this is just a Community Center . No, its way more than that comcast is part of 1000 Community Center. Wifi enabled list so students among them families can get the tools they need to be ready for anything. Comcast suprt cspan as a Public Service along these other television providers. Giving you a front row seat to democracy. Leaders of some of the nations Largest Pharmaceutical Companies testified on insulin prices before the Senate Health committee. Lawmakers as the Company Heads about stock buybacks, Prescription Drug prices and assistance for uninsured customers. [background noises] [background noises] the Senate Committee on Health Education labor and pensions will come to order. Let me begin by thanking the ceos of eli lilly, eat three major manufacturers of insulin. For being with us today as well as a heads up cvs caremark, express scripts and optimum rx three major pharmacy benefit managers. They had to judge authors schedules we very much appreciate all of them for being here. I also want to take this opportunity to thank eli lilly and reset months as i thank you all know announcing a substantial reduction in their list prices for some of Insulin Products. This is an important step forward. For me the bottom line of this hearing is not complicated. I do not care if you are a democrat republican whoever you are all of this country people are saying enough is enough they are sick and tired of paying outrageously high prices not only for insulin for other products as well. They want action in this committee is going to do what we can to respond to their needs. We need the help of the people to do that. And as we gather today i know we have some advocates in the audience of spent a great deal tsof time to lower insulin. This is important that we acknowledge manikins because they ration their inset 1. 3 million americans do that. Some of them died. Alex smith was 24f years old he dreamed of opening a b sports b. He is dead because he cannot afford insulin. The 10 year elite was 22 years old and worked two jobs to support herself she is dead she could not afford insulin. Alvin rivas was 20 years old and already lost his home because of insulin costs. This young man is also dead. These are just a few of the Many Americans have needlessly lost their lives because the outrageously high cost of insulin. Further we must acknowledge the thousands of americans who ended up in Emergency Rooms are hospital beds suffering from diabetic ketoacidosis. Very serious medical condition as a result ofli rationing there insulin. 1. 3 million americans in the richest country on earth cannot afford insulin. The committee today is convening for two major reasons in my view. One of them is low but personal. A couple years ago i took a trip from detroit, michigan to windsor ontario. An order to purchase insulin in canada which they were able to do for one tenth of the price. Then they were paint in the United States of america break one tenthod of the price for the exact same product foras it i wl never forget as long as i live the tears coming out of the mothers eyes because she could suddenly afford insulin. What i promise them t is that ty are notou going to have to go to canada or other countries to buy a lifesaving product that in america we can make sure they can get that here as well but secondly thisin committee is not only going to be dealing with the prices sent insulin to everything we can to end the outrage in which the americans, our people paid by far the highest prices in the world for virtually every brand name prescription on the market. Whether it is a drug for cancer, for Heart Disease for asthma, whatever it is we end up paying the highest prices in the world. We want to know why there are americans who are dying or becoming much sicker than they should because they cannot afford the medicine theyy need. Those are the question members of our panel are going to have to answer today in the future. Today one out of four americans cannot afford the medicine that their doctorsrs prescribed. That is beyond comprehension. And lets be clear the high cost of Prescription Drugs not only impacts the health of individual americans, but the budget of the United States of america. Ti if we paid the same prices for Prescription Drugs as major countries around the world, we could save over a trillion dollars in 10no years. I know many of my republican friends are concerned about the stuff a sit plate paid the same prices people around the world to save it trillion dollars over 10 years is real money. And lets be clear while americans pay outrageously high prices for Prescription Drugs the pharmaceutical industry and the pbmc make enormous profits every year. In 202110 Major Pharmaceutical Companies in america made over 100 billion in profits. And there ceos get very high compensation packages. The three major pbmc in america it made over 27 billion profits. Other its people and cannot afford the medicine at the Drug Companies in the pbmc make huge profits. In terms of insulin, let us not forget that a vial of insulin, this is a vial right here, cost reless than 10 to manufacture s i understand it. Someone will correct me if im wrong i think its less than 10 bucks. Meanwhile eli lilly increase the price 34 times since 1996 from 21 to do it at 75. The same exact product. Not change it at all. Why did they do it . Because they didnt know in your stop them for they can charge any price they want and they did is not just a lie leg. Novo nordisk increased 28 times from 40 in 2001 to 289. And sanofi increased from 35,002,001 to 292. Every instance is the exact same product crossroads astronomically. Lets declare this is a problem that is unique to the United States in france is 40 today it is 24, went down this country the prices soared. Meanwhile insulin manufacturers continue to increase prices, pbms signed a secret deals to increase their profits by putting Insulin Products not with the lowest list price pbms and the most generous rebates. The good news ispr as a result f a lot of public pressure wave recently seen the major Drug Companies reduce their prices. That is good news. Eli lilly announced the root reduce the price by 70 . Novo nordisk it would reduce by 75 . Transient announced it would reduce the pricece by 78 . It seems to me our job on this committee is w twofold. First, we must make sure these Price Reductions announced by the Drug Companies go into effect in a way that every american with diabetes thats the insulin they need at an affordable price. This committee holds a hearing nextxt year to make sure that isnt back tapping. We do not want words, we want actions. Lowering the cost of insulin is only part of what we must accomplish. This committee must do Everything Possible to make sure the American People no longer get ripped off by the Drug Companies for we ask hard questions. Eli lilly can lower the price by 75 , why is it still charging the American People about 200,000 a drug that treats cancer . 200,000 but that same drug is atsold for 54000. If novo nordisk can lower the price by 75 wife is still charging americans with diabetes 12000 exact same drug can be purchased for just 2 in canada. If it was at the starting Cancer Patients in america over 200,000 for drug they purchase in japan for just 37000. Questions the American People are asking. They want to know why at nearly half of all new drugs in america now cost over one her 50000, who can afford it . One her 50000, what world are you living in . How does that happen to cancer drugs which in some cases, if you dollars to manufacture. A few bucks to be effective. The accredited felling for 100,000. Really . Really . We have no conscience or moral values . Weve got a lot of work to do. Bottom line is we appreciate the work being done on insulin. We think all the advocates out there fighting that we have to make sure american can afford the price of Prescription Drugs. Looks like hr standards. The census is a culmination only to medical school in new orleans direct residency untreated patients in baton rouge. Each time diabetes is a concept also the ability to forgive drug as well for an interesting for me ive seen the work you have done, the technology the Drug Companies have put together that have made these medicines more convenient to take out of made it easier for the diabetic to manager diabetes. Going to tip our hat to you. On the other hand the ability to for the insulin is equally important as to innovation may have occurred because obviously cannot afford the innovation its as if the innovation is never current. In 1983 when i graduated from medical school, a lot more difficult to control the now. Not only have we had a medical breakthrough but we have had you come up with products that have made it easier for the diabetic to manage. I thank you for that. That goes without saying and that time. Had remarkable increase in quality of life. The teenager going to high school is much more managed therefore she is more likely to take her drug. We all thank you for that. But over time he got to for the innovation. Now we have to look at the issue is onut the cervical the kind of discussion here. When i go to church and people are pulling on my jacket they want to know about drug drug prices at the diabetic they want to know price of Prescription Drugs as a parent they areon really pulling on my jacket. Medically integrated with the Largest Insurance Company in the world. Managing 80 to the major drugld claims. What im told in recent years the knot is actually decreased even as the list price has increased. The money is going one place for a particular patient in her deductible is paying this price and is going from her parker to folks far richer than she. I appreciate the role they play prevent zoom hearings with academics pbm to drive down for a net price for patients. I will stipulate that. It is clear and always reaching the patient and at times particularly when choosing a deductible she is really paying a lot. That cannot afford. You have the manufacturers they have a look at todays hearing is to find answers and to find solutions. How to point fingers in the other will be fingerpointing because it is washington d. C. To address why are Prescription Drug costs so high particularly for the issue of insulin and what is the respective role of each of the players . I suspect if we realigned and sent those i want the graduation oftentimes bad behavior is driven more by bad incentives and that actors. In 10 bills aggressing pbm is a generic drug burn to try and make sure they can afford it. Today is the opportunity to inform or legislation birth till our objective and by the way the into law andl sign house of representatives passed the should be our goal. But for being here look for it you testimony as to how propose to lower cost American Families without ideal for quick thank you very much. Chair chief executive officer eli lilly. Senator as i understand it, wanted to introduce because he is from indiana were eli lilly is located. Thank you, mr. Chairman. Ranking member cassidy, i like to introduce mr. David ricks the fellow hoosier. Ceo of eli lilly and company. Indiana is a place for a lot of companies that have loomed large not only in pharmaceuticals were the biggest manufacturing state per capita in the nation with drug developmentsh served in a variety of domestic and Global Leadership roles with lily. Most recently becoming ceo 2017. Eli lilly was first pharmaceutical manufacturer to commercially produce insulin currently market several forms of insulin. Thank you so much for agreeing to be here in person to discuss your products we would ive had many discussions what ails the industry in general from hospitals, to Insurance Companies, to pharmacy, pbms in it. Even practitioners. A big lack of transparency, parent competition drives most other industries. Thank you for being willing here and thank you for being here to answer those questions. Roxio recognized the quick thank you chairmann sanders. Randy member cassidy distinguished members of todays community. Im d pleased to be your to participate in this hearing from david ricks chairman and ceo per click click you will do your mouth please . I maternity up eli lilly company. I joined 26 years ago because i believe in our mission. Innovation is at the heart of what we do. To good people diabetes. Type one piecece was a death sentence for the first animal which only introduced extended Life Expectancy to a person 30s. Today after a century of innovation Life Expectancy is now well into person 60s but we are notdi done. Diabetes still significantly reduces peoples Life Expectancy reading with modern insight and they struggle to keep their disease under control. There is more work to do. Not only am diabetes, on cancer and alzheimers and other serious conditions. That is by lily invest 25 of our total revenue this year 8. 5 billion into rnd that enables us to introduce newdi medicines. Nineteen in the last decade alone including the worlds first monoclonal value for covid. Armany more medicines coming in the pipe library just last week we showed exciting results from a new study, setting one of our medicines and alzheimers disease followed billions of dollars in investment, literally decades of work in several failures that preceded it. Of course medicines do no good if people t cannot afford them d access them but that is why i am proud we have led the industry in making insulin more affordable. About 75 cents a day. Before recent announcements which a dry the averages even lower. We began efforts years ago is not raise the price ofns any insulin since year i became ceo we only cut them into thousand 16 we lodged the first follow on biological insulin in the United States discount of the original brand on a box of it here with me today. A nonbranded copy of our leading selling at a 50 discount. We cut at the 70 may 1 is out 25 a bio. When the insurance system is not working for some people who need an incident where the First Company to cap their outofpocket costs at 35 per month. Now technologically possible. So the only company that will cap alter insulin at 35. These efforts and say people five east 185 million year to date about 100,000 people per month from the hundred thousand people. We let our way out of affordability ofof the headwinds of a system that unfortunately can incentivize others for hire list price medicine. Tireless prices allow for higher fees and rebates. While benefiting employers, one of many examples. In this identical cost 75 less, only one in three people today in the unitedpr states have accs to the lower price. In a preference for higher prices over a lower price product that is identical should never happen. Its a lot of recently announced price decreases neck price bubba have a log we take after rebates and discounts was about the same as in lodged in 1996 of the listed prices see brief companies who did not invent come did not develop nor manufacture the medicine. With the remaining costs the product of the making and distribute it which also thousand highpaying manufacturing jobs heree in america with full benefits and pension. We finance our patient p affordability commitments and also contribute 25 of that net revenue back to rnd. For newer and better medicines including insulin. Reforms are needed. We need a system that supports world i leading innovation and lower outofpocket costs for americans. Those reforms must help patients of the pharmacy counter while also incentivizing u. S. Companies to continue investing and leaving out some rnd which result in american having access to more and newer medication than any other country in th world. We are ready to continue to do our part and we are confident pulsing solutions are both simple and achievable. Thank you for having me today be good thank you very much for your next witness is mr. Paul hudson chief executive officer of sanofi. Thank you for being with us. Chair, Ranking Member, members of the committee be thank you for to be here today. Im here to talk about what hope is our shared goals to deepen our understanding of Healthcare System works, and what can be done to improve. Its also an opportunity to dispel some misconceptions. For example insulin sometime described as 100yearold drug. Much like the cause bears little resemblance to the model t todays insulin some after years of research delivered significant improvement to Patient Outcomes and quality of life. Determining transformers and medicine for patients is our strategic imperative. It is a role we in the biopharmaceutical industry uniquely play for society. Shortly after i arrived at sanofi refocus our development on medicines with potential to first in class and best in class treatments across the areas. Today im very proud of the progress weve made in support of these goals. Earlier this year we announced positive results fromto phase three study in copd. Third leading cause of death worldwide. If approved this to beem the fit innovation for patients suffering from this disease in over a decade. We anticipate the approval of the f