House Oversight Committee Chairman Elijah Cummings of Maryland sent letters to 12 drugmakers requesting detailed information and documentation on "price increases, investments in research and development, and corporate strategies to preserve market share and pricing power," according to a statement.
"For years, drug companies have been aggressively increasing prices on existing drugs and setting higher launch prices for new drugs while recording windfall profits," Cummings wrote. "The goals of this investigation are to determine why drug companies are increasing prices so dramatically, how drug companies are using the proceeds, and what steps can be taken to reduce prescription drug prices."
The panel is focusing its initial efforts on medications that were the costliest for Medicare Part D, as well as those with the most significant price hikes during the past five years. Among the companies that received requests for information are AbbVie, Amgen, AstraZeneca, Pfizer, and Eli Lilly & Co.
The oversight committee is slated to hold its first hearing on the issue on Jan. 29.