Why it matters:
Pharmaceutical giant Sanofi U.S. Services Inc. has ramped up its spending on lobbying three fold signaling its urgent priority to blunt Medicare drug price negotiations established by the Inflation Reduction Act while advancing legislation to preserve industry pricing flexibility.
By the numbers:
- $2.54 million on in-house lobbying efforts (up from $690,000 in Q4 2024)
- $230,000 on outside lobbying firms, including a new addition: Checkmate Government Relations
Driving the agenda: Sanofi is targeting several specific pieces of legislation:
- The EPIC Act would extend the period before small-molecule drugs face Medicare price negotiations from 7 to 11 years, matching biologics;
- The ORPHAN Cures Act aims to exempt rare disease treatments from Medicare negotiations;
- The HELP Copays Act would require insurers to count manufacturer copay assistance toward patient deductibles, and
- The Give Kids a Chance Act reauthorizes the Rare Pediatric Priority Review Voucher Program
Behind the scenes:
The company has augmented its lobbying team with strategic hires from the Biotechnology Innovation Organization, including Claire Willis Brandewie (former staffer to Sen. Mitch McConnell) and Emily A. Michael.
The big picture: Sanofi’s lobbying portfolio extends beyond drug pricing to include:
- Pharmacy Benefit Manager reform;
- Vaccine policy, including influenza and RSV access;
- Global supply chain issues, and
- Tax policy, including TCJA expiration concerns
Between the lines: Sanofi isn’t alone in this fight. The company has aligned with pharmaceutical manufacturers like GSK ($800,000) and Merck ($2.6 million) on drug pricing legislation, while finding support from patient advocacy organizations on copay assistance issues.
The opposition: Consumer groups like Public Citizen are lobbying against the pharmaceutical industry efforts to weaken Medicare negotiation provisions, while health insurers oppose restrictions on copay accumulator programs.
What’s next: The House Energy and Commerce Committee and Senate HELP Committee are considering several of these bills, with the Senate version of the Give Kids a Chance Act progressing furthest – having already received a committee hearing.
The bottom line: Sanofi’s unprecedented lobbying surge demonstrates the high stakes for pharmaceutical companies as Medicare price negotiation implementation looms.
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