• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Health

Will AbbVie, maker of the world’s best-selling drug, finally face the music over its price hikes?

By
Sy Mukherjee
Sy Mukherjee
Down Arrow Button Icon
By
Sy Mukherjee
Sy Mukherjee
Down Arrow Button Icon
May 19, 2021, 3:24 PM ET

If you’re looking for a story which encapsulates the duality of the pharmaceutical industry, you don’t have to search much further than AbbVie. That tale may finally be reaching a turning point, if bipartisan grilling of the company’s CEO Richard Gonzalez by Congressional leaders on Tuesday are any indication.

The creator of the world’s best-selling drug, Humira, has never been subtle about its strategy for success. Create (or, rather, acquire) a promising pharmaceutical and truly beneficial product. Test it out in dozens of different diseases to see if you can expand its market reach. Put up TV ads at every possible chance so people know, subconsciously or otherwise, the names “AbbVie” and “Humira.” And then erect a patent thicket so dense that your spotlight product can still be your cash cow 20 years after its first FDA approval without much fear of competition.

That latter point was the subject of a lot of Congressional derision on Tuesday from both sides of the aisle during a committee hearing which also pointed to a pattern of AbbVie cutting drug prices in other nations where they face more rivals and making up for the shortfall by hiking prices in the U.S.

“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, during the hearing.

It’s difficult to parse the intricacies of drug pricing in America given the assorted middlemen between the pharmaceutical industry and the patient: The list price may not be what you ultimately pay depending on your personal circumstance or insurance status. But for Humira, the data have been clear for quite some time.

For instance, AbbVie promptly announced a list price increase of 7.4% for Humira at the beginning of 2021. A drug initially approved in 2002 continues to be a best-seller without any changes to is underlying ingredients. And, according to the House committee report, AbbVie used the relatively lenient American patent structure for biotech to increase the price of Humira to $77,000 for a year’s supply. The cost of Humira without insurance can easily exceed $6,000 if you’re paying out of pocket.

CEO Gonzalez swung back hard against the allegations, as he has in the past, defending AbbVie’s patent strategy as entirely in accordance with the law and a product of evolving understanding of just what Humira might be able to do.

Republican Rep. Clay Higgins didn’t buy that argument. “They’re frivolous,” he said, referring to AbbVie’s hundreds of patents on various tiny steps of Humira’s manufacturing process. “You have a right to make an honest profit but it’s a question of whether or not it’s an honest profit.”

Representative James Comer, the top Republican on the committee, also took aim at AbbVie’s patent practices.

“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,” he said.

All of this is ensconced around an ongoing debate about biotech intellectual property. The Biden administration’s decision to waive IP rights for COVID vaccines raised plenty of debate in the biotech community about balancing profit incentives with social responsibility. Investors and analysts are a bit more sharp with their assessment of AbbVie’s tactics.

I’ll stand up for the patent on a vaccine that was first approved 5 months ago, but have to keep it real and say what $ABBV has done with Humira is ridiculous. JMHO

— Brad Loncar (@bradloncar) May 18, 2021

Amen to that. $ABBV strategy here has been to defend the cash cow at all costs. They've damaged the entire industry. And the entire industry will be punished for it. https://t.co/rouftkVCHT

— John Carroll (@JohnCendpts) May 18, 2021

Where this political road ends is an open question. Drug pricing has long been a flashpoint in American politics with little to show for it. Will the behavior of companies like AbbVie influence more politicians to support direct government price negotiations for pharmaceuticals, as is common in many other nations? That would certainly be an uphill political climb.

But through its tactics, AbbVie has clearly given the political crowd an easy talking point and big pharma villain to challenge.

Our mission to make business better is fueled by readers like you. To enjoy unlimited access to our journalism, subscribe today.
About the Author
By Sy Mukherjee
See full bioRight Arrow Button Icon

Latest in Health

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Health

CDC to escalate Ebola response after WHO declares emergency
HealthHealth
CDC to escalate Ebola response after WHO declares emergency
By Jessica Nix and BloombergMay 17, 2026
3 hours ago
WHO declares latest Ebola outbreak a global health emergency. A rare variant of the disease with no approved treatments is to blame
HealthHealth
WHO declares latest Ebola outbreak a global health emergency. A rare variant of the disease with no approved treatments is to blame
By Chinedu Asadu and The Associated PressMay 17, 2026
8 hours ago
hoeg
HealthFDA
RFK ally confirms she was fired by FDA: ‘I learned so much and leave with no regrets’
By Matthew Perrone and The Associated PressMay 16, 2026
2 days ago
lawyer
CommentaryLaw
Would you hire the lawyer who just got sanctioned for using AI?
By Alexandra SmythMay 16, 2026
2 days ago
lori
Commentarymental health
I run Valvoline Instant Oil Change and work with young people every day. They’re in crisis—and we all have to try to help
By Lori FleesMay 15, 2026
3 days ago
Claude is telling users to go to sleep mid-session and nobody, including Anthropic, seems to fully understand why it keeps doing it
AITech
Claude is telling users to go to sleep mid-session and nobody, including Anthropic, seems to fully understand why it keeps doing it
By Marco Quiroz-GutierrezMay 14, 2026
3 days ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
2 days ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
1 day ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
Economy
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
9 hours ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
1 day ago
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
Success
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
By Sydney LakeMay 17, 2026
15 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.