Congress loves a Big Pharma villain. But will that lead to any real policy changes on drug prices?

Good afternoon, readers.

There’s a funny cycle that resurfaces every now and then within the life sciences industry. A particularly odious actor arises that’s pretty easy to turn into a boogeyman (see: Martin Shkreli, or the company that used to be known as Valeant Pharmaceuticals.) What some might call clear price-gouging tactics by such entities make for a convenient, and politically bipartisan, punching bag as a sort-of synecdoche of the sector’s moral failings.

But the thing about a punching bag is that, usually, once you’re done beating it up, you just leave the gym. The bag’s still there to get whacked another day. The gym hasn’t changed its fundamental structure. And the lives of everyday Americans sees few shifts for the better.

I’m wondering whether this story will play out yet again and whether it’s indicative of what may happen with AbbVie, the pharmaceutical giant that owns both Humira, the world’s best-selling drug at nearly $20 billion per year in annual revenues, and the beauty product Botox following its acquisition of Allergan last year.

Congressional lawmakers on both sides of the political aisle tore into the company and its CEO, Richard A. Gonzalez, this week over claims that the drug maker is abusing the patent system in order to thwart competitors and milk its cash cow for as long as possible. The combination of patent thickets and price hikes can put consumers at risk, according to multiple leaders who spoke at the Congressional hearing.

“Drug companies are actively targeting the U.S. for price increases, while cutting prices in the rest of the world,” said Rep. Carolyn Maloney, chair of the House Oversight Committee. “While seeking hundreds of patents on a medication or vaccine is not illegal under our existing system, it can be anti-competitive and result in higher costs,” added Rep. James Comer, the top Republican on the committee.

Gonzalez and AbbVie have always been aggressive in defending the company’s patent strategy, asserting nothing it’s done is illegal and pointing to Humira’s multi-faceted and evolving uses as a justification for its tactics. (A few years back, I took a deep dive into AbbVie’s business and all-in wager on Humira that you can read here.)

But drug pricing is a particularly fraught issue in the midst of a pandemic. Former President Donald Trump made it a massive campaign issue, sometimes to the chagrin of his own party, though it led to little change. Democratic and Republican politicians regularly denounce what they see as pharma industry greed. But major policy items such as federally negotiated drug prices through Medicare have yet to materialize.

Drug price negotiation was clearly at the forefront of this week’s AbbVie hearings. But the appetite for taking on such a well-oiled, well-monied industry like biopharma is a massive political lift. Which brings us back to the central question: Was this week’s pile-on over AbbVie really about creating policy change, or just another chance for politicians to fling some spaghetti at the walls and call it a day?

Read on for the day’s news, and see you again next Thursday.

Sy Mukherjee
sy.mukherjee@fortune.com
@the_sy_guy

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