Giovanni Caforio remarks before the Senate Finance Committee

The average net pricing across our U.S. portfolio of medicines increased by 5 percent or less per year during the last five years. In 2018, it did not increase and we anticipate the same in 2019.

Despite this fact, we recognize that patients’ out-of-pocket costs continue to increase. We believe it is possible to work together to realign incentives to ensure patients can afford medicines without stifling scientific innovation.

So what are the solutions:

• We are supportive of the proposed rule aimed at reforming the rebate system with a focus on what is best for patients.
• We need to ensure more generics are available whenever permissible under our system, and applaud Congress and the Administration’s success with speeding the approval of generics.
• We support value-based purchasing arrangements that tie payments to value. These models can reduce costs, improve access and adherence, and contribute to better outcomes.  We applaud efforts by Health and Human Services and the Committee to remove regulatory barriers and facilitate greater use of these arrangements.

We do not believe the U.S. should adopt policies that stifle innovation in other countries, which could reduce a patient’s access to new medicines.  Outside of the U.S., reimbursement of new medicines can often take more than two years. Our Opdivo and Yervoy regimen was first approved in September 2015 to treat metastatic melanoma in the U.S. Today, six of the 16 countries included in the International Price Index proposal do not provide access to this combination, which is now considered the standard of care for this cancer.

This exemplifies why Bristol Myers Squibb does not support HHS’ proposed International Price Index Model for Medicare Part B drugs.

I would like to leave you with a few thoughts.

We are witnessing a historic era in biomedical innovation. But we must ensure patients have affordable access to these innovations.

We recognize the need for change, and we are committed to working with Congress to ensure every patient can benefit from today’s medical innovations.

American research-based companies are leading the next wave of biomedical innovation to help patients whose diseases cannot be adequately treated with today’s medicines.  We should work to ensure policies that support and reward these investments. 

On behalf of my colleagues at Bristol Myers Squibb, and the patients we serve, my sincere thanks for your time and attention today. I look forward to working together to implement real change that broadens access to innovative medicines for patients.