ESPECIALLY AS WE KICK OFF
EARNINGS TOMORROW WITH THE BIG
BANKS.
CHARLES: THANKS A LOT.
PRESIDENT TRUMP SIGNED TWO BILLS
AIMED AT LOWERING DRUG PRICES
YESTERDAY.
HERE IS WHAT HE SAID ABOUT IT.
ROLL TAPE.
>> IN LESS THAN TWO YEARS WE'VE
TAKEN UNPRECEDENTED ACTION TO
MAKE HEALTH CARE MORE AFFORDABLE
AND TO GIVE PATIENTS MORE CHOICE
AND MORE CONTROL.
THE AMERICAN PEOPLE DESERVE A
HEALTH CARE SYSTEM THAT WORKS
FOR THEM, NOT ONE THAT TAKES
ADVANTAGE OF THEM AND THAT'S
WHAT'S BEEN HAPPENING BUT WE'RE
CHANGING THAT RAPIDLY.
CHARLES: JOINING US HEALTH AND
HUMAN SERVICES SECRETARY ALEX
AZAR.
SECRETARY, THANKS FOR JOINING
US.
>> GLAD TO BE WITH YOU, THANK
YOU.
CHARLES: LET'S TALK ABOUT THIS.
IT IS OBVIOUSLY A MAJOR PROBLEM,
A MAJOR ISSUE.
I KNOW BACK IN THE SUMMER AP DID
A BIG SURVEY AFTER PRESIDENT
TRUMP DISCUSSED MAYBE SOME OF
THESE DRUG COMPANIES LOWERING
THEIR PRICES IN JUNE AND JULY.
395 DRUG PRICES WENT UP.
ONLY 24 WENT DOWN.
THIS WILL BE A TOUGH NUT TO
CRACK.
>> THIS IS A COMPLEX SYSTEM AND
WE TALKED ABOUT THE BEGINNING
HOW WE HAVE TO CHANGE THE ENTIRE
SYSTEM BUT HERE ARE THE RESULTS.
SINCE THE PRESIDENT ANNOUNCED
HIS DRUG PRICING BLUEPRINT WE
STARTED TAKING ACTION.
THERE HAS BEEN A 60, SIX, ZERO,
PERCENT DECREASE IN THE NUMBER
OF BRAND PRICE INCREASES
COMPARED TO THE PRIOR YEAR.
THAT IS A REAL IMPACT FOR
PATIENTS, REAL SAVINGS.
CHARLES: WHAT DRUG COMPANIES SAY
IT IS A LONG PROCESS.
YOU'VE GOT, YOU KNOW, FDA
APPROVALS, ONE, TWO, THREE.
YOU PUT IN A NEW DRUG
APPLICATION AND YOU GO THROUGH
ALL THE EFFICACY THINGS.
YOU GET A TRUCKS PUT IT ON THE
MARKET AND AT SOME POINT THE
GENERICS MAY UNDERCUT YOU.
THE WINDOW OF OPPORTUNITY
INVESTING BILLIONS OF DOLLARS IS
SO SMALL.
IS THERE SOMETHING CAN BE DONE
THE WAY THE SYSTEM IS DESIGNED
NOW TO PERHAPS INCENTIVIZE DRUG
COMPANIES TO KEEP THEM AT
CERTAIN LOWER LEVEL LONGER?
>> THAT IS EXACTLY THE RIGHT
QUESTION.
RIGHT NOW EVERY INCENTIVE IN THE
SYSTEM IS TO INCREASE THE LIST
PRICE OF THE DRUG.
EVERY PLAYER IN THE SYSTEM MAKES
MORE MONEY IF YOU INCREASE THE
PRICE BECAUSE THEY'RE GETTING A
PERCENT OF LIST PRICE.
SO WE HAVE TO CHANGE THOSE
INCENTIVES.
THAT IS WHAT PRESIDENT TRUMP AND
I ARE WORKING ON, HOW CAN WE
REVERSE THE INCENTIVES.
IT IS NICE 15 DRUG COMPANIES CUT
PRICES OF THEIR DRUGS OR
REVERSED PRICE INCREASES OR
COMMITTED TO NOT INCREASING BUT
WE'RE NOT COUNTING ON THEIR GOOD
WIL OR ALTRUISM TO CREATE THE
RIGHT INCENTIVES LONG TERM FOR
ENDURING CHANGE.
CHARLES: NEXT ONE,
MR. SECRETARY.
YOU WROTE AN OP-ED ON
E-CIGARETTES THIS MORNING.
I WANT TO SHARE WITH THE
AUDIENCE THE HEADLINE, QUOTE, WE
CANNOT LET E-CIGARETTES BECOME
AN ON-RAMP FOR TEENAGE
ADDICTION.
MAKE YOUR CASE.
>> I'M A PARENT OF TEENAGERS,
I'M VERY DISTURBED BY WHAT I SEE
WITH E-CIGARETTES AND VAPING
AMONG TEENS.
IT IS MORN TO HAVE E-CIGARETTES
WHO ARE ADDICTED TO COMBUSTIBLE
TOBACCO PRODUCTS AS AN OFF-RAMP
FOR THEM BECAUSE IT IS BETTER
THAN COMBUSTIBLE.
WE WILL NOT ALLOW E-CIGARETTES
AND VAPING TO BECOME AN ON-RAMP
OF TO BECOME ADDICTED TO TOBACCO
PRODUCTS AND WHICH WILL HAVE OUR
FULL FORCE AND AUTHORITY TO
COMBAT THAT.
CHARLES: PHILIP MORRIS SAYS
THEIR GOAL IS NON-COMBUSTION
PRODUCT.
THEY'RE WORKING TOWARD THAT.
IT THAT THERE IS FUTURE, THERE
ARE BENEFITS EVEN WITH
E-CIGARETTE, PERHAPS THE SAME
TEENS WOULD GO STRAIGHT TO
CIGARETTES.
MAYBE THERE IS SOME BUFFER
THERE.
DO YOU BUY INTO THAT AT ALL?
>> WE DON'T BUY INTO ANY YOUTH
GOING IN USING E-CIGARETTES AND
VAPING BILLIONING ADDICTED TO
NICOTINE.
THAT IS NOT RIGHT.
THERE CAN'T BE MARKETING TO
THEM.
WE ASKED MANUFACTURERS OF THESE
PRODUCTS TO COME FORWARD WITH AN
ACTION PLAN TO CONVINCE US THEY
HAVE THE ABILITY TO PREVENT
YOUTH GETTING ACCESS TO AND
BECOMING ADDICTED TO E-CIGARETTE
PRODUCTS.
CHARLES: WHAT ARE YOU LOOKING
FOR TO GET RID OF FLAVORS AND
CUTE NAMES?
SORT OF LIKE, YOU KNOW, YOU
KNOW, EVERYONE UNDERSTANDS THE
THINGS THAT SORT OF DRAW
YOUNGER, YOUNGER KID IN.
CANDY KING WE'RE SHOWING ON THE
SCREEN RIGHT NOW.
CAN THE GOVERNMENT GET THEM TO
DO THAT?
>> FIRST OFF WE'VE GONE AFTER
THOSE MANUFACTURERS HAVE PUT
PRODUCTS ON THE MARKET BASICALLY
REPLICATE CANDICE AND OTHER
PRODUCTS.
WE'VE ACTUALLY TAKEN ACTION
AGAINST THEM.
THAT IS PART OF THE PROCESS WITH
THE E-CIGARETTE MAKERS TO LOOK
THE ALL THE MARKETING PRACTICES.
ARE THEY DOING ANYTHING TO
ENTICE YOUTH TO FIND THE
PRODUCTS ATTRACTIVE.
WE'VE SEEN IN THE LAST YEAR A
LOAN A SHOCKING INCREASE IN
UTILIZATION AND PERVASIVENESS OF
E-CIGARETTES BY OUR TEENAGERS
AND WE'RE NOT GOING TO PUT UP
WITH THAT.
CHARLES: SECRETARY AZAR, BEFORE
I LET YOU GO, WE TALKED ABOUT
THE BRANDED DRUG PRICES.
WHAT ABOUT ON THE GENERIC SIDE?
WHAT IS BEING DONE TO MAKE THEM
MORE AVAILABLE.
>> I HAVE BREAKING NEWS FOR YOU
HERE ON THE SHOW, FIRST-EVER
ANNOUNCEMENT FOR FISCAL YEAR
2018 FDA APPROVED THE HIGHEST
NUMBER OF GENERIC DRUGS EVER IN
HISTORY.
THAT IS 971 GENERIC DRUG
APPROVALS.
781 OF THOSE ARE FULL DRUG
APPROVALS.
ANOTHER 190 ARE TENTATIVE
APPROVALS AND WHAT'S REALLY
IMPORTANT, 12% OF THOSE
APPROVALS WERE FOR COMPLEX,
DIFFICULT TO MAKE AND CONSTRUCT
GENERICS LIKE THE EPIPEN THAT WE
APPROVED.
SO A HUGE ADVANCE FOR
COMPETITION AND LOWERING DRUG
PRICES.
CHARLES: HEY, WE ALWAYS