Posted by Michael Wonder on 17 Jul 2018
Johnson & Johnson CEO defends drug prices, calls for changes in how medical costs are covered
17 July 2018 - President Donald Trump has tried to publicly shame drug companies into lowering prices.
Johnson & Johnson CEO Alex Gorsky called for changes in the way prescription drugs are paid for but stopped short of saying pharmaceutical companies need to lower the prices they charge.
Gorsky addressed the issue on a call with analysts Tuesday after the release of J&J's second-quarter results. He said the company knows "people are facing higher out-of-pocket costs when they seek medical care from a hospital, a doctor's office or some other alternative health-care provider, and especially when they go to the pharmacy to get medications."
Drugs, however, represent a fraction of the country's health-care costs, Gorsky said. Plus, he said, they address health issues and reduce morbidity rates.
