In a scathing report released on Tuesday, Senator Bernie Sanders shed light on the stark differences in drug prices between the United States and several other countries. The report focuses on three blockbuster drugs - Eliquis by Bristol Myers Squibb, Stelara by Johnson & Johnson, and Keytruda by Merck - revealing significantly higher costs for patients in the US compared to other nations.

According to the report, the annual list price of Eliquis is $7,100 in the US, while it is only $940 in Japan, $900 in Canada, $770 in Germany, $760 in the United Kingdom, and $650 in France. Similarly, Johnson & Johnson's Stelara carries a staggering annual list price of $79,000 in the US, but it is priced at $30,000 in Germany, $20,000 in Canada, $16,000 in the UK, $14,000 in Japan, and $12,000 in France. Moreover, Merck's cancer drug Keytruda is listed at $191,000 in the US, compared to $115,000 in the UK, $112,000 in Canada, $91,000 in France, $89,000 in Germany, and $44,000 in Japan.

Sanders, who chairs the Senate Committee on Health, Education, Labor and Pensions, issued the report ahead of a fiery hearing with the CEOs of Johnson & Johnson, Merck, and Bristol Myers Squibb. Sanders did not hesitate to threaten subpoenas to compel the heads of Johnson & Johnson and Merck to testify but ultimately, the CEOs agreed to appear voluntarily.

While other countries often pay less for medications due to government interventions, Sanders' report highlights the need for increased scrutiny of drug pricing in the US. The Biden administration and Sanders both emphasized the need to address the significant differential in drug prices between the US and other developed nations.

Notably, Sanders' report also pointed out the immense profits earned by the three pharmaceutical companies, as well as the generous compensations received by their CEOs. The report revealed that the drugmakers generated more profit from sales of these three drugs in the US compared to the rest of the world combined. Additionally, Johnson & Johnson and Bristol Myers Squibb spent $17.8 billion and $12.7 billion on share buybacks, dividends, and executive compensation, while allocating $14.6 billion and $9.5 billion respectively to research and development in 2022. In contrast, Merck allocated almost twice as much on research and development as on dividends and executive compensation.

The report comes as Medicare initiates its first-ever negotiations with drugmakers over the cost of ten expensive medications, including Eliquis and Stelara. While the prices charged in other countries are not considered during negotiations, the glaring disparities have underscored the need for reform in the US drug pricing system.

Critics argue that Medicare's negotiations could hinder research and development efforts within the pharmaceutical industry, potentially resulting in a decline in the introduction of new medications to the market. However, proponents argue that addressing the exorbitant costs in the US is essential to providing affordable healthcare to patients and ensuring equitable access to life-saving drugs.

As discussions surrounding drug pricing intensify, it remains to be seen how the pharmaceutical industry and lawmakers will navigate the challenges of balancing profitability and affordable healthcare for all.