J&J, Merck and Bristol Myers Squibb in the hot seat

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Good afternoon! This is Annika Kim Constantino, and I cover the biotech and pharmaceutical industry for CNBC.com. 

Three names in the industry – Johnson & Johnson, Merck and Bristol Myers Squibb – face a pivotal few weeks ahead. 

CEOs from those companies are slated to testify at a Senate hearing on high prescription drug prices in the U.S. on Feb. 8 at 10 a.m. ET, Sen. Bernie Sanders announced Friday.

It took subpoena threats from the senator, but J&J CEO Joaquin Duato and Merck CEO Robert Davis have agreed to testify after both executives declined earlier requests to appear at the Senate HELP committee’s hearing. They join Bristol Myers Squibb CEO Chris Boerner, who agreed to the panel’s initial invitation to appear. 

Sanders hopes the hearing could bear some fruit for Americans, especially after Eli Lilly’s CEO promised not to raise the prices of the company’s insulin products during a similar grilling the panel held in May. 

But why is the committee targeting Merck, J&J and Bristol Myers Squibb in the first place? Sanders noted that all three companies manufacture some of the most expensive drugs sold in the U.S.: Merck’s diabetes drug Januvia, Bristol Myers Squibb’s blood thinner Eliquis and J&J’s immunosuppressive medication Stelara. 

He’s not wrong: 

• The average retail price for a month’s supply of Januvia can range from $500 to $700 before insurance and other rebates.
• Eliquis’ retail price for a month’s supply is nearly $600 before insurance.
• The retail price for one dose of Stelara taken every eight weeks is nearly $25,500.

Those prices don’t reflect the exact cost people with insurance pay out of pocket.

Still, data from the Biden administration suggests that some older adults with Medicare Part D coverage still pay hundreds of dollars for those medications. On average, Medicare enrollees paid $2,058 for Stelara, $441 for Eliquis and $270 for Januvia out…