UPDATE | Senators urge pharma CEOs to rein in lobbyists

WASHINGTON (AP) — Senators today urged top pharmaceutical executives to help Congress take action against the industry's worst actors who hike prices on once-cheap drugs.

Democrat Sen. Sheldon Whitehouse of Rhode Island says the drug industry's reputation has been tarnished by a handful of companies that monopolize decades-old drugs and hike their prices.

Whitehouse told pharmaceutical executives: "turn off your lawyers and lobbyists when we try to solve that problem."

CEOs from seven of the largest drugmakers, including Pfizer, Merck and AbbVie, are testifying before the Senate Finance Committee. The hearing marks the first time the industry's top CEOs have been called to account for how they price their medicines.

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WASHINGTON (AP) — Senators grilled CEOs of seven major drug companies today over high prescription drug prices that are a drain on Medicare and Medicaid and a burden to millions of Americans.

The extraordinary public accounting was a sign that Congress and the White House are moving toward legislation this year to curb costs.

As the Finance Committee hearing got underway, Chairman Charles Grassley, R-Iowa, pointedly reminded the executives that it is a crime to provide false testimony to Congress. Some of the companies initially had sought a private meeting to explain their pricing policies, but lawmakers refused and insisted the CEOs appear in public or risk subpoenas.

"Without a doubt, drug pricing is a complex issue," Grassley said in his prepared opening statement. "But I think we should all be asking: Should it be so complex? We cannot allow anyone to hide behind the current complexities to shield the true cost of a drug."

Ranking Democrat Ron Wyden of Oregon said in his prepared statement, "You pharma executives are here because the way you do business is unacceptable and unsustainable. Ten companies accounted for half of all profits in the health-care sector last fall. Nine of those 10 were drug manufacturers."

In statements submitted to the committee, the CEOs said drug development is a risky and costly undertaking and that prices reflect investment in research and development.

"We recognize that the current state of drug pricing in the U.S. health care system is not sustainable and that patients are facing increasingly high out-of-pocket costs," AstraZeneca CEO Pascal Soriot said in prepared remarks. "We believe that these issues must be addressed urgently, and we hope to be a constructive partner in finding solutions."

Today's hearing marks the first time lawmakers have called the industry's top executives to account for rising prices. Previous congressional hearings have focused on bad actors who briefly captured national attention, such as former pharma executive Martin Shkreli, who hiked the price of a decades-old infection treatment by more than 5,000 percent.

Besides AstraZeneca, which makes the cholesterol drug Crestor, other companies represented at the hearing were AbbVie, maker of Humira for rheumatoid arthritis and other immune-system conditions; Bristol-Myers Squibb, maker of the blood thinner Eliquis; Johnson & Johnson, maker of Xarelto to prevent blood clots; Merck, maker of Januvia to treat diabetes; Pfizer, maker of Lyrica for nerve pain; and Sanofi, a leading manufacturer of insulin, including the Lantus brand. The drugmakers have collected tens of billions of dollars from government programs in recent years.