On multiple occasions, President Donald Trump has aimed his ire at pharma companies.
On multiple occasions, President Donald Trump has aimed his ire at pharmaceutical companies. He has criticized the industry for manufacturing products abroad as well as for the high prices of some treatments.
While Trump has gnashed his teeth in populist fury, he has done little to truly address the concerns since his inauguration. Additionally, Trump has also benefitted from political contributions made by some pharma executives. In a broad exposem Stat News points to the relationship between Trump and Celgene Chief Executive Officer Bob Hugin.
Prior to his inauguration, Trump said the pharmaceutical industry was “getting away with murder” when it comes to the prices the companies charge for medication. In a February meeting with pharma executives, Trump outlined what he wanted to see from the industry.
“What I want is we need to get lower prices. We have to get even better innovation and I want you to move your companies back to the United States. And I want you to manufacture in the United States,” Trump said, according to transcripts.
In its article, Stat pointed to Trump’s repeated criticisms of the pharmaceutical industry and how Celgene does not appear to be in any hurry to “get in line” with what Trump is seeking. All despite Hugin’s political alignment.
Hugin has been an avid supporter of the president and has served as a Republican delegate for New Jersey at the Republican National Convention that nominated Trump, Stat reported. During a meeting with pharma executives in January, Hugin was photographed seated to Trump’s left, Stat noted.
At the same time, he has also authorized Celgene to perform many of the actions that Trump has decried. Under Hugin’s leadership, Celgene maintains overseas manufacturing and has increased the price of its top-selling drugs multiple times this year, Stat said. Three times this year, Celgene has increased the price of its top blood cancer drug, Revlimid, Stat reported. The price increases, including one earlier this month, have caused an increase of 14.1 percent for Revlimid costs. Stat said a five-month supply of the drug has a list price of more than $66,000. Celgene has also increased the costs for its multiple myeloma drug Pomalyst, Stat added.
Additionally, Celgene maintains a stash of cash overseas. Celgene, along with many other pharma companies, keeps a chunk of money it makes in overseas markets offshore to avoid paying high corporate tax rates it would be charged by bringing that money back. Citing a Bloomberg report, Stat said the company has almost $7 billion in overseas banks.
In addition to Hugin, Trump is also close to another Celgene executive, Rich Bagger. Celgene’s executive vice president of corporate affairs and market access, Bagger took a leave of absence to helm the transition team of Donald Trump’s presidential campaign. Bagger had been rumored to be on the short list as a potential Secretary of the Department of Health and Human Services, a role that ultimately went to Tom Price, who resigned in September. However, in November 2016, BioSpace reported that Bagger was returning to his role at Celgene.
