An analysis by Accountable.US found that the five largest pharmaceutical companies in the United States made $82 billion in 2022.
The profit led to the companies increasing stock buybacks and dividend payouts, compounding hundreds of billions of dollars.
Eli Lilly, the largest pharmaceutical company in the U.S., raised the price of Humalog, an insulin drug, by 600% since 1996.
Its net income increased 12% in fiscal year 2022.
The second largest pharmaceutical company, Johnson & Johnson, spent almost $18 billion on dividends and stock buybacks in fiscal year 2022.
Merck’s profits rose 11%, resulting in a profit of $14.5 billion.
The largest pharmaceutical companies have provided funds for or are involved on the board of the lobbying firm PhRMA.
Most of the lobbying efforts are to oppose the IRA.
According to Director of Economic Security and Corporate Power for Accountable.US Liz Zelnick, “Seniors and families already struggling to afford life-saving medicines are told to brace for further price hikes by the same industry that saw its profits and shareholder rewards skyrocket by billions in a year. It only adds up to corporate greed.”
“Pharma executives’ claims that research and development expenses drive costs remain unconvincing when those costs are often eclipsed by billions of dollars in handouts to a small group of wealthy investors,” Zelnick added.
Reporting from Truthout:
Pfizer, for instance, has contributed at least $106,000 to PhRMA over the past decades, while Eli Lilly and AbbVie have given at least $45,000, the analysis finds. Pfizer’s CEO, who called the drug price plan that’s common in other U.S. agencies “negotiation with a gun to your head,” is the treasurer of PhRMA, while Eli Lilly, Johnson & Johnson and Merck are represented on PhRMA’s board. AbbVie’s Executive Vice President Jeffrey R. Stewart was on PhRMA’s board of directors before the company departed the group last year.
