Read time: 2 minutes

Rep. Katie Porter Rakes Big Pharma CEO Over The Coals

“To recap here: The drug didn’t get any better, the cancer patients didn’t get any better, you just got better at making money, you just refined your skills at price gouging," charged the prosecutorial Katie Porter.
Views:

Rep. Katie Porter demanded to know why Celgene had increased the prices of a cancer drug over 300% in the past decade or so from the then CEO Mark Alles. His compensation increased as revenue increased.

Celgene was aquired by Bristol-Myers Squibb in 2019 for $95 billion, including debt. At the time, this was the largest pharmaceutical company acquisition ever.

Source: StatNews

A handful of newly elected Democrats, including Rashida Tlaib of Michigan, Ayanna Pressley of Massachusetts and Katie Porter of California put drug industry CEOs on the defensive Wednesday like they’ve never been before.

The trio of freshman lawmakers used an Oversight Committee hearing to press the CEOs of Teva, Celgene and Bristol-Myers Squibb — painfully and directly — on the results of an 18-month investigation into the pricing of two drugs: Teva’s Multiple Sclerosis drug copaxone and Bristol-Myers Squibb’s multiple myeloma drug revlimid.

Porter, a former consumer protection attorney who has made a name for herself by embarrassing CEOs with prosecutorial questions and a white board, lived up to her reputation. She used that white board to display Celgene’s repeated price hikes for revlimid, which now costs $763 per dose, up from $215 in 2005, and demanded that Mark Alles, who served as Celgene’s CEO until Bristol Myers Squibb acquired the company in 2019, on explain whether the drug had improved over the same time period.

When Alles tried to insist that the drug was approved for new indications, Porter pressed harder.

“Did the drug start to work faster? Were there fewer side effects? How did you change the formula or production of Revlimid to justify this price increase?” Porter said. “To recap here: The drug didn’t get any better, the cancer patients didn’t get any better, you just got better at making money, you just refined your skills at price gouging.”

And some reactions.

Can you help us out?

For 16 years we have been exposing Washington lies and untangling media deceit. We work 7 days a week, 16 hours a day for our labor of love, but with rising hosting and associated costs, we need your help! Could you donate $20 for 2020? Please consider a one time or recurring donation of whatever amount you can spare, or consider subscribing for an ad-free experience. It will be greatly appreciated and help us continue our mission of exposing the real FAKE NEWS!

More C&L Coverage

Comments

NOTE: We will be changing to a new commenting platform in the next couple of weeks. We will supply more details as we get closer to the change. We understand some users are having problems with comments loading and this will hopefully remedy that problem

We welcome relevant, respectful comments. Any comments that are sexist or in any other way deemed hateful by our staff will be deleted and constitute grounds for a ban from posting on the site. Please refer to our Terms of Service (revised 3/17/2016) for information on our posting policy.