The move is highly unusual, marking the health committee's first subpoena in over 40 years.
Senator Bernie Sanders (I-Vt.) had extended invitations to Johnson & Johnson CEO Joaquin Duato, Merck CEO Robert Davis, and Bristol Myers Squibb CEO Chris Boerner to testify at a hearing addressing the exorbitant costs of prescription drugs in the United States compared to other countries. The hearing, titled "Why Does the United States Pay, By Far, The Highest Prices In The World For Prescription Drugs?" was scheduled for Jan. 25. However, only Boerner agreed to testify, contingent on the participation of at least one other CEO.
In response, Sanders plans a committee vote on Jan. 31 to decide whether to issue subpoenas and authorize an investigation into the soaring costs of prescription drugs, according to an obtained notice by STAT.
Sanders expressed his dissatisfaction with the refusal of the two CEOs to participate in the hearing, deeming it "absolutely unacceptable." He emphasized that their substantial compensation and their companies' substantial profits do not exempt them from congressional oversight.
Johnson & Johnson responded by stating they have "deep respect" for the committee's work and have continued engagement on the hearing. They mentioned having expressed concerns about the hearing's current format and offered an executive other than the CEO to testify.
Merck similarly indicated in a letter to committee leaders that they provided an executive alternative to the CEO for testimony on pricing and commercialization issues, along with a willingness to respond to written questions.
Senator Bill Cassidy (La.), the committee's top Republican, suggested that hearing from the executives responsible for pricing policy could have led to a more insightful discussion. He urged the HELP Committee to return to bipartisan cooperation instead of focusing on compelling CEOs to testify.
All three companies—Johnson & Johnson, Merck, and Bristol Myers Squibb—have filed lawsuits against the federal government, alleging the unconstitutionality of the Medicare drug price negotiation program enacted by Democrats in 2022. Specific drugs from these companies were among the first 10 selected for the negotiation process.
In a letter to the committee, Johnson & Johnson argued that the hearing seemed like retribution for challenging a statute infringing on constitutionally protected freedoms. Merck echoed this sentiment, stating that congressional investigations shouldn't be a means of punishing companies for challenging laws in court.
Despite the standoff, other drug company executives, including the CEO of Moderna and the CEOs of insulin manufacturers, have testified before the Senate health committee in the current Congress. Sanders previously threatened to subpoena the CEO of Starbucks, who eventually agreed to testify before a scheduled vote to issue the subpoena.
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