Democratic Congresswoman Katie Porter of California is known across the country for using her financial acumen to poke holes in the excuses of the nation's top executives—often employing her trademark whiteboard for visual aid to truly hammer down the point.
This past Tuesday was no different, when Porter put Richard Gonzalez—CEO of pharmaceutical company Abbvie—through the wringer at a House Oversight and Reform committee hearing on stratospheric drug prices.
Gonzalez tried to take refuge in the age-old claim that American drug prices are steep due to the costs of the research and development incurred by pharmaceutical companies.
Congresswoman Porter wasn't buying it, and she quickly called him out.
Watch below.
Big Pharma says they need to charge astronomical prices to pay for research and development. Yet, the amount they spend on manipulating the market to enrich shareholders completely eclipses what's spent on R&D. Today, I confronted a CEO about the industry's lies, with visuals pic.twitter.com/c3jSLr0yVd— Rep. Katie Porter (@Rep. Katie Porter) 1621363238
Porter pressed Gonzales on Abbvie's expenses from 2013 to 2018 across a range of sectors such as litigations and settlements ($1.6 billion), marketing and advertising ($4.71 billion), executive compensation ($334 million), and—of course—on research and development ($2.45 billion).
But one number stood out from the rest. When it came to stock buybacks (where a company repurchases its own stock to increase shareholder ownership) and dividend payments to shareholders, the company spent a whopping $50 billion—more than 20 times the money put toward the research and development Gonzalez claimed drove up drug prices.
Porter was unflinching in her rebuke:
"You're spending all this money to make sure you make money rather than spending money to invest in, develop drugs, and help patients with affordable lifesaving drugs. You lie to patients when you charge them twice as much for an unimproved drug, and then you lie to policymakers when you tell us that R&D justifies those price increases."
She went on to indict the pharmaceutical industry as a whole:
"The Big Pharma fairytale is one of groundbreaking R&D that justifies astronomical prices, but the pharma reality is that you spend most of your company's money making money for yourself and your shareholders. And the fact that you're not honest about this with patients and policymakers, that you're feeding us lies that we must pay astronomical prices to get innovative treatments is false. The American people, the patients, deserve so much better."
Social media agreed, and praised Porter for her latest takedown.
Big Pharma\u2019s fairy tale: R&D justifies the astronomical price of prescription drugs.\n\nBig Pharma\u2019s reality: CEOs spend most of their money... on making money.\n\nWe need to end the immoral price gauging of life-saving medicines.\n\nBreak it down, Professor Porter https://twitter.com/repkatieporter/status/1394724627566391297\u00a0\u2026— Nina Turner (@Nina Turner) 1621371981
Wow. Just... wow. @RepKatiePorter is so unbelievably good at this.pic.twitter.com/wZ68Nq2ae1— Brian Tyler Cohen (@Brian Tyler Cohen) 1621364821
Here is @katieporteroc beutifully destroying the lie that high drug prices are due to the cost of research and development. \n\nWe need to create some kind of award and call it the Katie Porter.pic.twitter.com/x0lrQJpy0h— Amee Vanderpool (@Amee Vanderpool) 1621368971
the whiteboard https://twitter.com/RepKatiePorter/status/1394724627566391297\u00a0\u2026— Morgan Jerkins (@Morgan Jerkins) 1621374631
oooh I LOVE when there's a new episode of KATIE PORTER'S WHITEBOARDhttps://twitter.com/RepKatiePorter/status/1394724627566391297\u00a0\u2026— Ariel Dumas (@Ariel Dumas) 1621373615
Watching this is medicine.https://twitter.com/RepKatiePorter/status/1394724627566391297\u00a0\u2026— Naomi Klein (@Naomi Klein) 1621372844
They almost felt sorry for Gonzalez. Almost.
DAYUM @RepKatiePorter! Great job! (Did he get up off the floor yet?)https://twitter.com/repkatieporter/status/1394724627566391297\u00a0\u2026— Juli\u00e1n Castro (@Juli\u00e1n Castro) 1621368880
If I was a CEO, I\u2019d rather get eye surgery from Rand Paul and then dental work from Paul Gosar before I\u2019d face the whiteboard.https://twitter.com/repkatieporter/status/1394724627566391297\u00a0\u2026— Ron Filipkowski (@Ron Filipkowski) 1621373930
When @RepKatiePorter brings out the white board, just go ahead and resign.https://twitter.com/RepKatiePorter/status/1394724627566391297\u00a0\u2026— Travis Akers (@Travis Akers) 1621368506
We can't wait to see the next time the whiteboard makes a cameo.