Tuesday, October 15, 2024

Pharma finds a way to cash in on climate war

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By Arianna Skibell

Image of a human figure taking a dose from an inhaler — flowers both real and made of dollar bills flows from the inhaler medicine puff.

Illustrations by Lorenzo Matteucci for POLITICO

Drug companies have found a way to circumvent President Joe Biden’s price cap on inhalers: going green.

New climate-friendly inhalers, which could come to market as early as next year, will cost Medicare and Medicaid billions of extra dollars and allow major pharmaceutical companies to raise their prices and, consequently, their profits, writes Ariel Wittenberg.

Biden successfully lowered Medicare prices and capped out-of-pocket inhaler costs to $35 for millions of Americans with lung disease. But greening brand-name products will let drug companies bring them back under patent protection, effectively killing competition for at least a decade.

The move could undermine work by Sen. Bernie Sanders (I-Vt.) and the Biden administration to lower patients’ drug costs — even as Vice President Kamala Harris campaigns for president on those gains.

When Ariel inquired, officials at AstraZeneca and GlaxoSmithKline, which produce some of the most widely used inhalers in the United States, declined to commit to maintaining the $35 out-of-pocket price cap on the new inhalers.

The push to green inhalers is driven in part by a global climate treaty signed nearly a decade ago. The Kigali Amendment to the Montreal Protocol encourages drug companies to redevelop inhalers without using planet-warming hydrofluorocarbons, a major driver of climate change. But if the revised inhalers come with new patents, that could prevent the Food and Drug Administration from approving generic versions.

“We are talking about big-name products that are going to be largely immune from price negotiations,” said William Feldman, a pulmonologist at Brigham and Women’s Hospital in Boston who studies drug patents and how they influence costs.

The situation could be bad news for millions of Americans’ bottom lines. Inhalers are some of the most widely used medical devices and can be lifesaving drugs for the nearly 25 million adults and children who have asthma in the United States.

Their emissions, however, are equivalent to driving half a million cars for a year, according to federal data. GSK estimates that some 49 percent of all its greenhouse gas emissions are related to patients using its inhalers.

 

It's Tuesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, Arianna Skibell.  Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to askibell@eenews.net.

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Today in POLITICO Energy’s podcast: Josh Siegel sits down with Energy Deputy Secretary David Turk to discuss the path forward for speeding up large energy projects, which the Biden administration needs to meet its climate goals.

Power Centers

Former President Donald Trump gestures to supporters from the stage.

Former President Donald Trump gestures to supporters as he departs a rally at Santander Arena in Reading, Pennsylvania, on Oct. 9. | Francis Chung/POLITICO

California in Trump-land
As California officials prepare to defend their climate policies from a potential second Trump administration, they are realizing his influence could prevail despite the election outcome, write Blanca Begert and Alex Nieves.

Leaders at every level of government are stress-testing their climate laws, looking to make deals with industry to circumvent lawsuits should Trump win. But even if he doesn't, many of California's climate rules could end up before a Supreme Court stacked with Trump appointees hostile to climate regulation.

Montana race: From guns to greens
Ryan Busse's two sons and 14 other young people used an unusual provision in Montana's constitution — the guarantee of a clean and healthful environment — to win a landmark climate change lawsuit against the state in 2023, writes Lesley Clark.

Now, the former gun industry executive turned firearms critic is running for governor.

SCOTUS fight looms over climate reviews
The Supreme Court's recent policing of agency authority may soon extend to a contentious fight over environmental and climate reviews for major federal projects, writes Niina H. Farah.

Later this term, the justices are set to hear arguments in Seven County Infrastructure Coalition v. Eagle County, which asks the justices to limit requirements for federal agencies under the National Environmental Policy Act.

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Congress has poured billions of dollars into programs to buy out homeowners and help them relocate after natural disasters — but don't expect residents in flood-ravaged rural North Carolina to bite.

Hawaii’s top court has declared greenhouse gas emissions to be pollutants, a decision that could have repercussions for the oil and gas industry and insurers in climate lawsuits across the country.

California Gov. Gavin Newsom signed a bill Monday aimed at reining in soaring gas prices that have come to symbolize California’s multifaceted struggle with affordability.

That's it for today, folks! Thanks for reading.

 

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