Why drugmakers are lobbying hard | Morning Newsletter

We’re inching closer to Friday.

Expect sunny skies and a high of 48.

Be aware of road closures, bus detours, and parking restrictions for today’s tree-lighting ceremony in Philly and Saturday’s holiday parade.

It was a huge defeat for Big Pharma when Congress and President Joe Biden enacted a law aimed in part at lowering prescription drugs for Medicare beneficiaries. Our lead story follows one Philly-area drugmaker, Merck, as it tries to fight back in the courts and on Capitol Hill.

— Taylor Allen (@TayImanAllen, morningnewsletter@inquirer.com)

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Merck, the biggest employer in Montgomery County, filed a lawsuit in June alleging the Inflation Reduction Act’s drug price negotiation program for Medicare amounts to extortion and violates the U.S. Constitution.

The company is also beefing up its spending for advocacy in Washington, too. The drugmaker spent $8.2 million on federal lobbying through September — the most it has spent in the first three quarters since 2012.

The Biden administration in August announced that Merck’s drug Januvia, which treats type 2 diabetes, will be among the first medications subject to Medicare-negotiated prices starting in 2026. Merck will likely lose millions of dollars in Medicare payments and has said it anticipates more of its drugs will soon be targeted, too.

The law’s supporters say it’s a much-needed first step toward reining in what they call government-enabled drug monopolies.

Keep in mind: The fight comes as Biden is pitching his push to lower drug prices at the center of his 2024 reelection campaign.

Read on to understand Merck’s argument as to why it needs to charge market prices.

There’s already dozens of presents under the Christmas tree at Katie and Luis Garcia’s Bellmawr home.

When everyone else was flocking to the mall for Black Friday shopping or had booted up their computers to participate in Cyber Monday, the couple were wrapping the gifts they bought months ago for about 20 relatives and friends.

Why so early? Katie Garcia loves Christmas, but doesn’t want to spend large amounts of money in November and December. For about five years, she makes her first purchases in March and aims to finish by August. It reduces the financial anxiety she used to feel this time of year.

In her own words: “Not only was it hard on my budget, but it was really stressful,” Garcia said. “Now in December, I’m going away on vacation … I’m not going to have to worry about what’s wrapped, who I still need to buy for. I’m literally going to be on an island having a drink.”

Read on to learn more about how she strategizes her gift-buying.

Who secretly outbid Rob McElhenney for Kylie Kelce’s signed Princess Diana Eagles jacket?

A) Kaitlin Olson

B) Bradley Cooper

C) Charlie Day

D) None of the above

Think you know? Check your answer.

💻 Anticipating: Join reporters Oona Goodin-Smith and Jeremy Roebuck for a Reddit AMA on r/philadelphia today at 12:15 p.m. as they discuss their coverage of former Local 98 leader John Dougherty’s embezzlement trial. Go beyond the headlines and see what they’ve learned in court so far and what’s to come.

💭 Wondering: How many of these quirky holiday traditions do you do?

Hint: Their Christmas duet is at the top of the Billboard charts

BERET SHERLOCK

Email us if you know the answer. We’ll select a reader at random to shout out here. Cheers to Alison Cook, who correctly guessed Wednesday’s answer: Jeannine Cook.

And that’s all I have for you this morning. I’m off to grab my first cup of coffee.☕ Thanks for starting your day with The Inquirer.