A new report from government watchdog Accountable.US reveals that the top ten drug producers under the Biden-Harris administration’s Medicare negotiation program amassed over $93 billion in profits in FY 2023. During this period, these companies heavily invested in stock buybacks and dividends for wealthy shareholders while resisting efforts to lower prices for seniors and other patients.
Despite a drop in inflation to a three-year low, medical costs continue to drive high expenses.
“Pharmaceutical CEOs and their lobbyists have invested millions to undermine the Biden-Harris administration’s landmark Medicare negotiation program,” said Accountable.US Executive Director Tony Carrk. “Their focus on maximizing profits has left many Medicare patients struggling to afford essential medications. With inflation easing, the Fed should prioritize addressing corporate greed rather than focusing solely on inflation.”
KEY FINDINGS
- Johnson & Johnson: Net income surged 96% in FY 2023, driven by a 9% increase in U.S. sales of Stelara. The company spent $16.7 billion on stock buybacks and dividends.
- Merck: Despite a decrease in sales for Januvia and net income, Merck allocated $8.8 billion to stock buybacks and dividends, while investing $11.4 billion in acquisitions, including Prometheus Biosciences for $10.8 billion.
- AbbVie: The company earned $3.65 billion from Imbruvica in 2023, spending $12.1 billion on stock buybacks and dividends and proposing $18.8 billion in acquisitions.
- Bristol Myers Squibb: Net earnings rose 27% to over $8 billion, partly due to a 4% revenue increase for Eliquis. The company spent $9.9 billion on shareholder payouts.
- Novartis: Net income increased by 114% to $14.9 billion, with Entresto generating $6 billion in sales. Novartis allocated $15.9 billion for dividends and buybacks.
- AstraZeneca: Profits rose 81% to nearly $6 billion, driven by a 36% increase in Farxiga sales. The company distributed over $4.4 billion in dividends.
- Novo Nordisk: The maker of Fiasp/NovoLog saw net sales grow by 31% and net profits rise by 51%. Novo Nordisk rewarded shareholders with $6 billion in dividends and $4.2 billion in stock buybacks.
- Amgen: The manufacturer of Enbrel saw net income increase to $6.7 billion, with $4.6 billion allocated to dividends, up from $4.2 billion in 2022.
- Eli Lilly: Despite a decline in net income due to acquisition costs, Eli Lilly’s Jardiance generated $1.6 billion in U.S. sales and $2.7 billion globally. The company spent $4.8 billion on stock buybacks and dividends.
