House Democrats request FTC investigate AbbVie's pricing of Humira

May 18, 2021
In The News

Three House Democrats called on the Federal Trade Commission (FTC) to investigate drugmaker AbbVie for its pricing of Humira, the best-selling drug in the U.S. and internationally. 

House Oversight and Reform Committee Chair Carolyn Maloney (D-N.Y.), Judiciary Committee Chair Jerrold Nadler (D-N.Y.) and a Judiciary Subcommittee Chair David Cicilline (D-R.I.) requested a formal inquiry into AbbVie through a letter to acting FTC Chair Rebecca Kelly Slaughter.

The requested probe would examine whether the drugmaker violated the law by delaying competition against its drug Humira, which treats rheumatoid arthritis and other inflammatory diseases, from lower-costing versions of the drug.

Maloney announced the call for the investigation at a House Oversight and Reform Committee hearing ahead of testimony from AbbVie CEO Richard Gonzalez on drug pricing. 

The Oversight and Reform Committee chair said the committee obtained internal documents showing the drugmaker’s executives projected Humira would face competition from biosimilars starting in 2017.

“But AbbVie used legally questionable tactics to block lower-price biosimilars from reaching American consumers until at least 2023,” she added. “Those tactics made AbbVie a fortune but cost Americans dearly.”

The letter said AbbVie faces no competition against Humira in the U.S. and entered into nine patent settlement agreements with potential competitors, postponing other companies from introducing biosimilar drugs until 2023. In Europe, AbbVie competes with at least six biosimilars to Humira. 

The Democratic lawmakers also point to internal analysis that found if Humira faced competition earlier instead of as expected in 2023, it would have saved the U.S. health care system $19 billion between 2016 and 2023.

AbbVie did not immediately return a request for comment. 

When Rep. Peter Welch (D-Vt.) asked if it’s correct the company does “constant analysis” to “anticipate competition that may result in lower prices or price competition,” Gonzalez responded, “We constantly look for ways that we can innovate a product to be able to protect and grow its position by making it a better product for patients.”

The Oversight and Reform Committee also released a staff report on Tuesday that concluded AbbVie inflated prices of Humira and the cancer drug Imbruvica over the years.