The Intercept, February 2, 2016
by Lee Fang
Responding to tough talk by presidential candidates about price gouging by drug companies, pharmaceutical executives have told investors that they are working actively to influence the political debate. And in a move that reveals how much leeway drug firms actually have over pricing decisions, some are even saying that they have minimized price hikes in recent months to avoid attracting attention.
Democratic contenders Bernie Sanders and Hillary Clinton have both called for the government to do much more to bring down the price of medications. And last week, Republican candidate Donald Trump came out in support of allowing Medicare to negotiate for cheaper drug prices, a move that places him even to the left of some leaders in the Democratic Party.
On Thursday, former pharmaceutical executive Martin Shkreli is scheduled to join other executives in testifying before a congressional panel about why they hiked prices on lifesaving drugs by as much as 5,000 percent.
The political environment has Wall Street worried. “We heard Bernie and Hillary last night go after drug pricing again and I think that’s also something we are going to hear from the Republicans,” warned Jami Rubin, the Goldman Sachs health care group analyst, on an earnings conference call last week for Johnson & Johnson.