A Senate report pointed to greed and “patent thickets” as the key reasons for high drug prices in the US. During a hearing led by Senator Bernie Sanders, it was revealed that pharmaceutical companies are spending more on executive compensation and stock buyouts than on research and development for new drugs. Despite blaming pharmacy benefit managers (PBMs) for price gouging, it was noted that their practices contribute minimally to the overall drug market costs. The report showed how drug prices have skyrocketed over the past two decades, with Americans paying nearly three times more than other wealthy countries. The CEOs of three pharmaceutical giants were questioned on their pricing practices, with Senator Sanders highlighting the exorbitant prices Americans are forced to pay. The pharmaceutical trade group PhRMA argued that comparing US drug prices to those of other countries hurts patients, claiming that Americans have broader and faster access to drugs.
https://arstechnica.com/science/2024/02/big-pharma-spends-billions-more-on-executives-and-stockholders-than-on-rd/