In our respective roles as president of the United States and chairman of the Senate Health…

In our respective roles as president of the United States and chairman of the Senate Health, Education, Labor, and Pensions Committee, we have long been troubled by the exorbitant costs that the pharmaceutical sector imposes on the American population for prescription medications.

There’s no justifiable basis for why U.S. citizens, for numerous years, have been compelled to shell out, by a significant margin, the steepest prices globally for the essential prescription drugs they require.

There’s no logical explanation for why, spanning decades, one-quarter of Americans have found themselves financially incapable of obtaining the medications their healthcare providers prescribe.

And it’s certainly not the patriotic obligation of Americans to bear the burden of high drug costs domestically so that individuals in other nations can benefit from the equitable prices that every American deserves.

This explains why, through our collaborative efforts over the past few years, we’ve achieved significant strides.

Thanks to the Inflation Reduction Act, which passed congressional approval without a solitary Republican vote, senior citizens managing diabetes are now paying a maximum of $35 per month for insulin. Beginning in January, no senior citizen across the U.S. will incur expenses surpassing $2,000 annually for prescription medications. Furthermore, for the first time in American history, Medicare is adopting a practice common in other major countries: Engaging in negotiations with pharmaceutical corporations to decrease the cost of some of the highest-priced medications available in the United States.

This pragmatic approach enjoys widespread support from the American populace, including endorsement from over 60% of Republicans.

Through partnerships with some of the world’s largest drug manufacturers, we’ve also succeeded in reducing the price of inhalers — essential for millions of Americans grappling with asthma and chronic obstructive pulmonary disease — from a staggering $645 to a more manageable $35.

We take great pride in these accomplishments. The U.S. government is finally taking a stand against the excessive practices of the pharmaceutical industry. However, there’s still much work to be done to lower the prohibitive costs of prescription medications.

We plan to expand negotiations on drug prices

What are the implications of this?

It signifies that, in an era where numerous Americans are contending with multiple chronic conditions, no one in our nation should face the burden of paying over $2,000 per year for the essential prescription drugs they require — this shouldn’t be limited to senior citizens. It also means that the range of prescription medications subject to price negotiations must be broadened to encompass a minimum of 50 drugs annually. We are collaborating on legislation to achieve this objective and anticipate full support from every member of Congress for this crucial measure.

Let’s be unambiguous: The responsibility to act doesn’t solely rest with Congress. Pharmaceutical companies must cease their exploitation of the American people.

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Allow us to illustrate with a significant example. Currently, a substantial number of Americans are struggling with Type 2 diabetes and obesity.

On a positive note, Novo Nordisk, a prominent player in the global pharmaceutical industry, has developed groundbreaking medications, Ozempic and Wegovy, which effectively address these health concerns.

Obesity drugs are too expensive

However, the downside is that Novo Nordisk is imposing unreasonably high prices on the American public for these vital medications. If your physician prescribes a GLP-1 receptor agonist, the cost of Ozempic and Wegovy can reach levels that are multiples higher compared to what individuals in Canada, Germany, Denmark, and other major countries pay. This disparity is simply unacceptable.

Novo Nordisk is not alone in this practice. Eli Lilly is also charging exorbitantly high prices for Mounjaro, a drug with similar therapeutic effects as Ozempic, with a cost reaching approximately $1,100 per month.

Why should residents of Burlington, Vermont, be subjected to significantly higher costs for the same medication compared to those living in Copenhagen or Berlin? The reality is that people in Paris, Texas, should not be burdened with substantially greater expenses for Ozempic and Wegovy than individuals residing in Paris, France.

These disparities become even more apparent when considering the profit margins of these companies. For instance, in March, a study conducted by researchers at Yale University revealed that these drugs could be manufactured and sold at a profit for under $5 per month, equating to $57 annually.

The scientific community at Novo Nordisk deserves commendation for developing Ozempic and Wegovy. These drugs hold the potential to be transformative for individuals worldwide who are grappling with Type 2 diabetes and obesity. However, as crucial as these medications are, they will remain inaccessible and ineffective for the millions who cannot afford them.

Furthermore, if the prices of these drugs aren’t significantly reduced, they pose a threat to the financial stability of the American healthcare system.

We are committed to preventing such an outcome.

If 50% of adults with obesity were to be prescribed Wegovy and other recently developed weight-loss medications, the annual cost could reach $411 billion — surpassing the total amount Americans spent on all prescription drugs at pharmacies in 2022 by $5 billion.

Similarly, if half of all Medicare and Medicaid beneficiaries dealing with obesity were to utilize Wegovy and other similar medications, the annual expenditure for Medicare and Medicaid could reach $166 billion, approaching the combined amount these two federal health programs allocated for all retail prescription drugs in 2022.

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This approach lacks both moral and fiscal responsibility.

Americans struggle while pharma companies make massive profits

Let’s be clear: While countless Americans face challenges affording the prescription drugs they require, the pharmaceutical industry continues to amass substantial profits year after year. In fact, 10 leading pharmaceutical corporations generated over $110 billion in profits last year alone.

To illustrate, in 2023, Novo Nordisk recorded profits exceeding $12 billion, partially driven by charging Americans over $1,000 monthly for a medication that could be profitably manufactured for less than $5. This cannot be classified as a reasonable return on investment; it’s a clear case of price gouging and corporate avarice.

Pharmaceutical companies might argue that Americans may ultimately pay less than their listed prices due to obscure discounting mechanisms involving intermediaries. However, these opaque strategies prevent payers from understanding the true cost of medications, weakening their bargaining power.

Additionally, the industry might contend that even if their prices are excessive, reducing them would stifle innovation and hinder the development of groundbreaking medications like Ozempic. However, there’s no inherent conflict between reaping the benefits of innovation and ensuring fair prices for consumers or expanding access to these innovations.

If Novo Nordisk and other pharmaceutical entities persist in their refusal to significantly lower prescription drug prices in the United States and cease their exploitative practices, we are prepared to utilize all available means to put an end to this behavior. Novo Nordisk must substantially reduce the prices of Ozempic and Wegovy.

Joe Biden is the 46th president of the United States. Sen. Bernie Sanders, an independent from Vermont, is chair of the Senate Health, Education, Labor and Pensions Committee.

As a nation, we must remain resolute in our efforts until every individual in the United States can afford the necessary medications to live healthy, fulfilling, and productive lives.

Let us unite and strive towards this goal together.