to make that happen. >> i asked staff, because there is some responses from you about this being only one of your products. how much -- how substantial was epipen? i was amazed by the answer. and i asked you to verify this. that mylan is 0.3% the product -- percent of the products you produce but 10% of the revenue. >> epipen is less than 10% -- a little less than 10% of our overall - >> at the pain is less than 10% of our overall -- >> only about 0.3% of the

products you produce.io >> because we absolutely produce billions and billions of doses. >> yeah, but you know, this has to be a minute amount of the products you produce. yet out of that comes 10% of the revenue. what bothers me when we, we ought to do is compare you with others because you are certainly not the only one. the ranking member brought up the names of others who have been notorious. but even in that notorious regrouping, malan is the 11th in revenue in the drug industry. can you confirm that? >> i'm not -- no. i'm not sure. >> that is our information. let you get back to us with, different information, 11th in

revenue in the entire drug industry which is perhaps the most criticized sector of an economy and 16th by market capitalization of. and that mylan is paying its executives far more, for example, you've already testified that you earn $18 million. that's last year. understand you armed tore $.45 million in 2007. you got a hefty increase. but from 2.5, less than 10 year ago, 18 million last year. that's the figure? >> i am blessed and fortunate to of not only financially but to work with this company for 25 years, and to -- >> could ask you this. what have you done to earn a 671% increase?

what have you done to earn that kind of increase? >> well, i believe of mylan has done a tremendous amount starting -- >> i'm asking what you've done. i'm interested in your compensation. what he done to earn that kind of increase, 671% increase in less than 10 years? >> i would see starting with saving the u.s. over the last 10 years $180 billion. our products alone has taken this country $180 billion. i >> i'm talking about this product. this product -- >> talking about mylan. >> i'm talking about this product, ms. bresch, this product. what have you done? is your compensation based on what you done with this product, which turns out to be at the center of your products of the many products you make? some trying to find out what you've done about this product that has armed such an increase?

>> i would say having seven heads thousand free epipens acrostics a 6000 schools across america could not be more proud about that -- 700,000. >> which, of course, then you want another increase.ize the gt thank you, mr. chairman. >> the time has expired. i now recognize the gentleman from tennessee. >> thank you very much, mr. chairman. first of all want to associate myself with those are marks of both the chairman and the ranking member. according to nbc since it's been brought up by the previous question, according to nbc, ms. bresch made $18,931,068 in 2015 but i suppose when you get to salaries, the level we're talking it is easy to forget ana extra 931,000.

but the greed is astounding. it's sickening, disgusting. almost any word you can think of. not only by ms. bresch at the other executives. and i'm a very conservative pro-business republican, but i am really sick and by what i've heard here today and what i've i ca before. i can tell you that come in my opinion, nobody can really earn or deserves $19 million a year. and lest anyone be a great misunderstanding that the freem market or capitalism has not worked, you don't have a free market. that's the problem. a true free market you use of entry.et you served don't have that in the drug and she and also you plenty of competition and a true free market, an if you don't hae that here. it's ironic the fault of the fda.

i've read article after article for many years we let the food and drug administration become so big and so bureaucratic that it's become almost impossible for a small company to get a drug or a medical device tocostt market. the cost of getting a drug or medical device to market on average has become, in many cases, most cases, over a billion dollars to get a drug to market.. because of that the drug industry has ended up in the hands of a few big giant. and then i read article after article with all these giant drug companies and pharmaceutical companies have hired many or most of the former fda commissioners and top level employees, just like the defense department, the defense contractors have hired so many retired admirals and generals. and what they've done in the drug industry, the coming and they manipulated the market. ms. bresch testified to office

as saying they only get $274 from the epipens. these pins were selling by this of the company, this german company for $100 in 2007. we've only had i think around 30% inflation in those years, and yet they've almost tripledom the price that this german company was being. then congress with good intentions made the situation worse by giving incentives forp these schools in grants to get these pens. and then understand that the new york state attorney general is getting ready to investigate mylan, because they have required, if given the first pens out for free as marketing devices that can require them to buy the next times they have to

buy pants. but what does concern me, one thing really concerns me, according to september for stored on npr, the fda as of july had 4038 generic drug applications awaiting approval, and then beating time it takes fda to approve generic is now 47 months. that doesn't sound like it or expedited procedure to me, dr. throckmorton. and then it says in march generics giant told investors its generic version of epipens was rejected by the fda addedd now would not be able to launch the generic at least until next year. another pharmaceutical company -- i'm not sure if i am pronouncing that clip, reported a similar rejection of the fda in june. so that's two giant companies that have had, have been turned

down. dr. throckmorton, the fda needs to speed up its actions and it needs to allow more competition but it's not doing that now. and in the opinion i think almost everybody here. and then it's all been done onef the backs of sick children, and it's shameful. mr. chairman, thank you. >> thank the gentleman. now i represent my colleague for your five minutes. >> thank you, mr. chairman. ms. bresch, since i have a limited amount of time i want to ask you a series of yes and no questions. and then i will give you an opportunity to respond in more detail if you would like at the end. first, at the referendum is an essential -- up enough for an sm essential life-saving drug, greg? >> yes. >> the formulation of

epinephrine, the active drug hae not changed since 2007, correct? >> the pain has changed. the device has changed but the epinephrine -- o >> the formulation of the drug has not. >> write speed do you a big of raised the price the epipens by more than 400% since acquiring it in 2007 speak was just. the wholesale acquisition costs. >> do you admit mylan has spent millions and millions of dollars to expand the epipens market? >> yes. we expand access. >> that according to fresh reports on september 17, 2015, he stared at a conference at the core, we are continuing to open up new markets, new access with public entity legislation that would allow restaurants and hotels, and really anywhere you are congregating.

there should be access to an epipen. did you make that statement? >> yes, sir. >> in 2012 a settlement agreement was reached with a pharmaceutical industry preventing it from putting a generic on the market until 2015, or earlier under similar circumstances. is that correct? is that correct? >> yes, sir. >> do you admit by delaying the entry of a generic drug into the marketplace, mylan has had less competition, do you admit that that should less competition by that delay? not you all the delaying but having the delay? >> we've had competition to epipen every year. >> the "new york times" reported that although maligned, ethical, with once taking to -- 10%

increases the ubiquitous taken 15% increases annually starting in 20 working with the generic competition seemed imminent. do you admit that in anticipation of generic competition, mylan raised the price more tropicana had in the past? >> not due to genericccompet competition, the we did increasc the wholesale acquisition cost. as i stated we get 274 out of the 608. over that time period we received an average of 8%. >> so raising the price, do you admit that these price increased were intended to generate even more significant revenues before generics entered the market? was that the intent of the raising the price that you all receive additional revenue?

>> we certainly received additional revenue, but on 274, just not the 608. >> have you ever witnessed an individual having an epileptic seizure? i grew up in the 1960s and '70s, and i had a friend who i witnessed on a couple of occasions these seizures. have you ever seen an individual have a seizure? >> the two anaphylaxis? >> and yes. >> no, sir. >> well, it's not a pretty sight. i mean, look, modern medicine has advanced in a way that's beneficial to patients, but to have companies like yours take advantage of this situation, take advantage of these people

who are really in need of this medication, i think it speaks to something that is, that we are better than that. and i would hope that corporate america, that the pharmaceutical industry is better than that. i mean, look, in the last few seconds, tell me, you know, how did we get to this point, that we have the culture like this in >> corporate america that wants to stick it to consumers? >> all i can speak to is our culture, which mylan has for over 50 years spent and invested and being able to produce 21 bio low-cost pharmaceuticals and provide access. as a mention over 21 billion doses. we have saved this country overe $180 billion. so our premise is to provide access. what we worked on with epipen was to be able to get 700,000

free pens to schools with no strings attached, nothing but -- >> that time is -- >> you put it out of reach ofhe the average consumer. >> the gentleman's time has expired. i think the question was answered. i now recognize myself for five minutes of questioning. recent news articles, ms. bresch have documented a lobbying effort on behalf of mylan to ade to epipen to the list of preventative medical services managed by the use preventative services task force. preventative medical services are those that prevent illnesses before they cause symptoms or problems.he task kirtley treatments receiving a grade of a or b by the task force are required to be offerep to consumers with no out of pocket costs. supporters of adding to epipen to the list of prevented medical services argue that this measure will help consumers get access

to epipens with no cost-sharing. ms. bresch, while adding the epipen to the preventive medical services list, will it do anything to lower the actual rise of the device, the overall reason for hearing today? >> so the preventative drug list as you've mentioned would make sure internet access, but what we have now done with the generic drug and pricing the -- copy the price to 300 we believe provides that some access but believe that obviously the importance of epinephrine auto injectors should be part of the preventative drug list. >> so you are still pushing to have it on that list? >> i absolutely think it should have -- yes. >> do you believe that spending lobbying resources to add to real epipen of the preventive medical list and thus shifting the price of the drug to other sectors is a realistic solution to stem

rising drug prices? >> but, sir, that's what we did was so unprecedented. it wasn't to shift. we dropped the price by half by introducing the generic. >> but you still want it on that list. >> just to ensure that, just short of the unborn is -- >> why not reduce the price instead of spending lobbying resources? >> so there's been, a lobbying resources within primary about trading access and getting epinephrine in public places like schools and eventually just like a defibrillator. i mean, what we recognize is that when you need when seconds count, they should be where you are. >> we don't disagree with that at all. we appreciate the fact that the product can be there and can be useful. but this was also, i think we need to plumb the depths of that. the list also -- won't disinfect shift the focus of epipens toheh

government figures such as medicaid, medicare, hope insurers, employers, eventually leading to an overall increase in claims of other companies and consumers? >> no, sir. we believe by one putting the generic like we have 300, over 85% of our patients pay minimale out of pocket costs. by now because if i have it even reduces that further. this is not all about cost shifting. it's just making sure internet access and understand the importance of epinephrine. >> it certainly takes the pressure off bad publicity for a cost factor to get it paid for by medicaid, medicare, et cetera. button shift over to mr. throckmorton. because there is a concern -- but let me shift -- a concern about the delay, the time period, the bureaucratic maze. some drug companies are taking advantage of the agency's daily to a report generic drugs.

i think we've seen that. we are questioning that today. what can we do to expedite approvals to ensure with multiple generic competitors to prevent drastic price spikes? we could test when i last go around the set is a lot of bureaucracy. what are we doing to get to the? >> thank you for the question. i want to take issues finally with that characterization where we are as an agency.ag there was a time when our resources were not able to keep up with the applications that we were receiving for true generic drug products, not authorize generic but true drug products, approved under the abbreviated new drug applications. there was a time in 2012 when we didn't have a backlog. we had over 4400 applications that needed to be reviewed. in 2012 with carcasses help we got additional resources allowing us to hire newf that hb individuals -- with congresses

help. the result has been over 2200 approvals or tentative approvals since 2012. so we have, in fact, made progress in reaching conclusions regarding approvals of true generic products spill what about the markets? are you doing anything against the markets that are at risk of becoming monopolized by single generic? >> absolutely. we first and foremost agree with everything that's been said about the power of competition in the importance of us taking that challenge on, us making it possible to develop new products. in particular when you are talking about products like auto injectors for epinephrine, the public health valley is even i. we understand for those products we need to put particular attention. wwe've done something specifically about difficult to develop products like the epinephrine autoinjector. the guidned a couple of an

earlier. the guidance we put out talking about how to put these products on the market sufficiently, beckley, how we're going to review the data, the kind of information you need. in addition we need with anyth company that comes to us with a product that has this public health value we offer to meet with them individually. we offer to respond to the questions in writing. we have put out -- >> i appreciate that the right time has expired but i would make a statement that if there are companies that are havingthw difficulty, i served think that ommbers on the spent would love your directly from them and then come directly to you to ask them those questions because we want to do with this. we want of the competition. we want to see the price reduced. we don't have feelings like this on a regular basis. my time has expired. i now recognize mr. lynch from massachusetts for five minutes of questioning. >> thank you, mr. chairman. h ms. bresch, i want to go back to

the prophet you've given us today. last year, the price was about $46$460 for a two pack, is that right? [inaudible] >> the documents you gave us are totally deficient in terms of trying to figure out how muchju you are charging people and how much it costs you, just so you know. i know we have some outstanding judgment request for your company. i hope you can comply with those as soon as possible to help me with this work. let's even go off your chart. $401 when you. that was 2014?

530 in 2015, if in a whopping $608 this year. so far. so how much money were you making per epipen backing 2014 than when you're charging $400? >> so, sir -- >> please, not another chart. >> i'm just saying that the 235 -- >> i'm not talking about that. i'm talking about the top prize. i'm talking about the overallp price. >> we received $235. >> look, that's not what i'm asking you. and you just answer the question? when you're charging $400 back in 2014, how much were you making? >> equivalent to the $50, approximately $50 -- >> okay, $50, fair enough.

>> >> forty dollars. >> forty dollars back in? >> i believe so. >> 2015 they went up to $500.. how much were you making at your?? >> we received 219. our prophet was around $38. >> thirty-eight dollars. now it's back up to $50 this your? >> approximately. >> if you're only making $50 this year, he must've been losing money the previous year's because you've gone up $200 in the overall price, the top prize, and you're still only making $50. i just can't understand that the the numbers don't work. based on the documents you have given us. >> so, sir, the six or eight is the wholesale acquisition cost. >> we've done that dance to understand that. >> approximately $50 of profit off of the 274.a.? >> mr. throckmorton, but me ask you, ms. bresch. do you do business with the va? i know it's a different population and the epipens as

usual for kids with allergies but -- >> we do. >> what is the va being? >> i'm not sure of the cost but i know it -- >> they have the ability to negotiate their own drug prices. a hell of a lot less i bet. >> yes speed maybe that's what we ought to be for medicaid and medicare but does. let them negotiate directly with the pharmaceutical companies. that's what i think should happen. i think maybe it was not your intention but i think it g might've helped congress get around an issue by showing the blatant disregard you have and disrespect you have for people who desperately need this medication. you talk about expanding the ability for people to have the epipen. people and my district to do it at 6-under $8. can't do it. a lot of those people don't ha' discounts. they are regular middle-class people and they don't have that discount.

medicare part d, their increases, i know the access went up by 164% since you bought the company from merck. but the cost increase are up 1151%, based on the study you that i have from julie and patricia. i want to enter this into the record. without objection. >> so ordered. >> is disgraceful what's going on but as i say you've done us a bit of a favor by j. showing what's wrong with the system, what's wrong with our health care system to i think it's discussing. disgusting. i will yield back. >> the gentleman yield. [inaudible] >> thank you, mr. chairman. ms. bresch, i just wanted to get inside the mind of a large drug

company ceo for a minute. we did you guys sit down and decide after 2008 you've acquired the epipen, when did you decide to use this model a price increase and how did you come to that conclusion? >> it was first recognizing the fact that there's a severe, shockingly low, understanding of anaphylaxis, there is a shockingly low number of people who were prepared or protected with epipen. >> said you decided you should raise the price of? >> no, sir, we commit to investing in this product which we have about over a billion dollars over these eight years to provide access.s. >> how much have you paid over eight years speakers issa absolutely our largest product, but -- >> i just how much have you made? you how much invested in him which did you make? >> i don't have the number. >> you know what you spend. do you think you are charging too much?

do you think $600 is too much or were you going to keep raising the price of?pr >> which is why we took the unprecedented action of setting the generic in at $300. >> we will get to that but if you plan on increasing the price in 2017? >> no, sir, we did not. >> but you did have a plan to raise it every year for five or six years?s? >> and if you look at what -- >> no. i said that's the question. did you have a plan to raise the price every year for six yearse and then stopped? >> we have raised the price anything managing to what wenag. received, that 274 out of the 600 acres what we're managing. >> be awfully proud of your country. you think that was fair to raise the price. you've got a drug of $100 which is probably too much, i know she made a fancy pen because i had one of direct combat to office and shall not use its i know that cost a little bit of money.

generally when a drug goes to generic doesn't the price go down? >> which is why we dropped it to $300. >> only after you jack it up the 6-under. you fio by this time 66 oh dollars but you will sell for $300, that doesn't make it worth $300. when did you know you going to release the generic? >> we announced that several weeks ago. >> appointed you know as a company? unit it was company. you've got a gentleman sitting next to same it takes months oru years. >> no. we are putting an authorized generic in the market which isia equivalent -- >> we are supposed to do good because you've taken a drug that you're overcharging six times what it's worth and you are going to drop the price. >> we were receiving 274 out of --e thought it >> you think you are charging too much at 600? >> we believe it was a fair price and we just now lowered the price by half.

>> why did you lower it by half if you thought it was theirs because we want to make sure we were addressing the patients out of their facing higher out of pocket costs and paying the wholesale acquisition costs, which was not intended. the system was intended for people to pay the wholesale acquisition costs, and that's what's happening at an alarmingly rising rate which is what did the unprecedented stepa of putting the generic in to sidestep that can be able tove lower the cost -- >> you doing everyone a favor by charging three times what you acquire before. you are trying to make a stupid about that. i'm not buying your argument. did have a guilty conscious about any of his? >> over that period of time putting it in public places, giving 700,000 free epipens to 66,000 schools i wanted to get into all of the public schools f across america. >> if it cost 20 bucks, they could afford to buy their own.ou instead you chose to jack the prices up and smell make everyone to feel good about you by saying how much he do.

online issued a very inexpensive drug and have profited handsomely off of it. i don't have a problem like a lot of my colleagues that you can make money in a free market enterprise not what i do have a problem with as a physician when you take drugs that are life-saving drugs, people don't have a choice. they can go to a different department store to get their time. have to have a good because a mother would cut off her right arm to get a dose of drug. now you're saying or dropping it to 300 that she makes all feel better when that is probably about 10 times what the drug should cost. i understand you've got to make some money but you can really sit there with a clear conscious today and said that's oka okay d you decided because you're such good company to cut the price? is that your testimony? >> >> we want able to needs and epipen to have epipen and wepri? will continue -- >> lower the price of they can afford it. are you going to lower the price of? >> we believe all the programs we put in place from the generic

two d. higher patient assistance program to the co-pay card, so trying to address every facet of patient to make sure they can have -- have access to epipen is what we will remain focused on. >> thank the gentleman. now recognize the gentleman from virginia for five minutes. >> i thought, well. i was listening to you earlier testimony, your formal testimony, and i was just struck with what humanitarian the people of my lan really are. -- myelin. if you listen to testimony you would never know what to the uproar is about. do you understand the -- >> i.d.e.a. to believe the story that had of the facts because i think people have come because of the complexity around the pharmaceutical system i think asking up to now really put on

the record what we are making, what comes to mind them, making $50 -- >> forgive me, i only have five minutes to have to manage my time like you have to manage yours. i don't mean to cut you off i want to get to some questions.in okay. so let me get this straight in terms of chronology and sequencing. you took over the previous manufacture in 2007, my limited, correct? >> correct. >> the price of epipen had been fairly stable up to that point, correct? so since 20 >> yes. >> so since 2007 you've raised the price 15 times, if i understood correctly speak with yes. >> so what happened between 2007-2016 different than the previous manufacturer and producer? if production costs skyrocket to

you? >> cost of goods increase for sure.os >> well, how much? >> almost 100%. of 100%. and what was the comparable price of epipen and that 100% cost increase of? >> i'm saying over the last eight years. >> and i'm saying what, you would from what to what in eight years in what you charged maximum price?me i took a point that not everyone pays that. we have a medical system with all kinds of different layers of pricing. nonetheless, the cost to consumers, what was the comparable increase while you are absorbing eight years, one of% cost to you to produce? what was the tropical cost in theory to consumers, maximum cost increase in the time period that you charged by raising costs 15 times? >> today that is $274 that we receive for the epipen.

>> i was asking for a percentage increase. let's get apples and apples. if you're going to contend the production cost went up by 100% that all right, what is the comparable increase forse consumers during the time period of? your own testimony you acknowledge the raised the price 15 times. >> i believe it is almost 300%. >> 300%. presumably that's profit. >> after, from that, after the cost of goods, and then you take out all other epipen related costs. >> i don't care what your profit is. i mean, america is built on profits. c profits are an incentive. what i care about is what youldk charge consumers who have no choice. if i understand it, you've got a strangle hold on the market. you control 94% of this market, correct? >> we have a large market share the we don't control. at any point speed i will withdraw the word troll, ms.

bresch, if it of things you. you have 94% of the market share. >> correct.xp >> i call that a strangle hold, a lot of control to you don't want to call control, don't. but consumers are experiencing a little different. because you're such a stringt hold on the market you can do what you want in terms of pricing, and you have. >> we've had many competitors in and out of this market place but, in fact, that just underscores the complexity -- >> don't even equal 6% of the market, ms. bresch. that doesn't even pass the giggle test what you are asserting. you virtual have a monopoly and you've used it to your advantage but, unfortunately, it at the expense of people who need it. this isn't life-saving drug inis some cases. people the risk anaphylactic shock don't have a choice. they have to use it. and i'm wondering what your sense of social responsibility is to those people.

i mean, how do you balance, i'm looking, i could go through for you state that you have made in the company has made in and report to investors. it sure is a different set of statements and what we've heard here today. i didn't hear the humanism. i dignity philanthropic call. i heard statements about favorable pricing. i heard statements about the epipen continues to post strong results and has delivered double-digit growth to date. that's because of your pricing. >> but it's also because we were reaching almost double the amount of patients and protecting and having the ability to be prepared with into epipen.. we absolutely expand access andw reached to patients who are at risk, as those printed in public places like our schools program. >> during the call to investors, one question asked to you was, what are the prospects of future

price increases for epipen for this is an investor meeting, and her answer is, i quote, you should foresee that discontinuing as we continue to maximize the epipen franchise. what did that mean? if it was a reassuring investors, that we're going to max west every opportunity to max west a profit. again i don't think profit is a bad thing but i do think it's a bad thing when some exploits it at the expense of consumers who live on its price, or don't. >> and that's why we taken every step to ensure everyone can meet in epipen has one. all of our programs from whether it's the axi access program or co-pay card on the schools program so that are 700,000 free epipens throughout the 65,000 public schools and want to reach the other 65,000 public schools. >> again, i think my time is running out, but there's a sort of this dr. jekyll and mr. hyde in this case.

college to your testimony. there's one message for the public, quite end of the for investors to i yield back. >> now recognize the gentleman from south carolina, mr. gowdy. >> thank you, mr. chairman.n on as you know i'm not a physician which is what i was consulting with one that i'm not an expert in economics, but i am trying to understand, ms. bresch, maybe you can help me walk through the different change of delivery foc namebrand drugs versus authorized generics from the manufacturer to the patient to what is the difference in the chain of delivery? >> you mean in the product or how it is distributed? >> distributed. >> so the supply chain for generic is different than the supply chain for a brand, primarily -- >> authorized generic. >> authorized generic anti-generic would be the samees channel.

so the distribution channels do differ, primarily given the fac that generics are for the retail pharmacy. so there is the supply chain from a pharmacy manager or the formularies differ quite a bit from the brand to the generic. >> that leads me to another question. i'm sure there's a really obvious answer a given my background i don't know what it would be. why don't pharmacies just deal with the manufacturer? if a doctor has to write a prescription and the pharmacist knows what the prescription is for, why is there a middle person in the delivery of drugs? >> for many of come on generics, or meaning we to deal directly with pharmacies, whether they are large chains or if their independence. >> i guess that's my point the tv could do for generics, why

not for namebrand, to? >> because most of american falls under a formulary, payers, and pharmacy benefit managers manage those formularies for insurers or for employers. so they manage what products cad be, it's geared. they decide what products can be on a tier two or tier three whether it's before or not preferred. so they serve as an administrator for most employers. >> the drug middleman serves as an administrator? >> as far as deciding what products are on, that they will reimburse for or what rate they will reimburse for them. >> that me ask you this. is it theoretically possible that your profit margin could t increase with an authorized generic as opposed to the

namebrand drug? >> no, sir. it will be considerably less. >> walk me through how that would be. you are cutting out the middleman but yet you are making less money. how? >> so there still is, there's still fees in rebates and discounts on the generic side and the generic channel. they are just not a significant. so we are charging, we set the wholesale acquisition price of 300 we estimated that our net, what would come to my length would be 200. out to take cost of goods out of that in epipen related costs, ie will certainty less than the $50 that we talk about to be around the profit per in the mylan received on the brand spent i think you entered this i want this to be important -- on the record. tell me, walk me through the costs all the way down to what my then gets for treating it --

might then gets for being as a namebrand compared authorized generic. >> this is the math. you can see the wholesale acquisition, a mylan raven ofth 274 minus the cost of goods minus the direct cost which is the one of dollars or $50 per pin. what we set for the generic and what we've said for the generic is that the wholesale acquisition would be at 300. mylan received 200 less cost of goods less epipen related costs. so we will be substantially less than the $50 of profit per pin that we receive on the brand. >> thank you, mr. chairman.ou. spin would the gentleman yield for one question?st >> i would be -- >> just one question.

just follow up on what you said. it seems like you would beto taking a loss, unless i got my math wrong. when you go to the generic and he said you got certain costs, seems like you would be taking a loss on the generic. am i missing something? >> not a loss. i just said we would be making less than substantial less than the $50 per pen we're making today spent we would not recognize the gentleman from illinois, ms. duckworth. >> thank you, mr. chairman.ntlem i want to highlight the stories of two comes from a district. lease and bad of an eight year old son was diagnosed withhi severe food allergies before hed turned one. basic internet begin for five years and one day bryant atete something and begin foaming at the mouth and vomiting and nightmare came true. when he came home from the hospital he told his mom, mom, i don't want to die. even at five years old, brian

new have serious his body's reaction was to tenuous that was closing. on this occasion in epipen saved his life. enhances from schaumburg, illinois, this to be concerned about mylan's skyrocketing prices. her husband mark anderson year old daughter both of life-threatening peanut allergies. as result the film has to ensure they have to autoinjectors at school, camp, each sets of grandparents home and mom's purse. they know what it's like to depend on a small device for the safety of the, and that's why she took the time to write to me and urged me to do everything in my power to ensure everyone, even those less fortunate, to protect their children the same level of care. the families are lucky to get good insurance like lisa shared with me, we don't know it will always be in this position in one day they may not be able to afford the epipen, if prices keep going higher and i. i agree. even a single life lost the

delight of access and affordability due to this drug is one life to many. ms. bresch, i'm going ask yo yoo keep the edge of sure i will ask you yes or no question for short one word answers to this guy not to filibuster run amok time. i need you to answer yes when the. is epipen is given out over 700,000 epipens, mylan is given to schools across the nation, great speakers yes. we have given free epipens.t? >> mylan offers pens through your school program, great speakers yes. >> this is the important an element. states like illinois that have laws that require schools to stock up enough in autoinjectors but, in fact, this is a program in schools that your own mother was instrumental in getting states to adopt in her capacity as the president of the national association of state boards of education. so we can better understand the

scope of this program, from august to may 216 approximate how many schools signed certification forms purchasing discount epipens at a price of $112.10 per carton? >> schools that i decided to purchase just additional, besides pashtun we give for free speech how many schools have done this?pipens. >> i think around 5%, so i think there's been about 45,000 epipens. >> 45,000 schools -- >> no, no. question. epipens purchased. >> how many schools? answer my question. you don't know what you did go a number of how many schools you've how many schools you've given them to a number of schools you have not given to an to want to get and all the other schools but you get them how many bought epipens from you under this program you're so proud of? >> it's a very small number. it's a very small. 66,000 schools are who we have

given free epipens do. >> i am also not as concerned about your profit-making. i believe in the free market. what i consider that a short monopolistic practices. us to know whether the purchaset discount epipens had to make any representation and warrants that they would've to give certain conditions in order to access the discount price that you>> n. given? >> schools do not have to purchase any epipens. >> the schools that are trying to get the discounted price from you.nyat did they have to certify or make any representations or warrants that they wouldn't give to certain conditions in order to get that price? >> for people who want to buy it at the discounted rate, yes, but that had nothing, the free epipens had -- >> i'm not talking about themr free epipens. i'd like this ended into the record. >> without objection, so order

ordered. >> thank you, mr. chairman. it's a certification for more mylan has actually said that the school hereby certify or not ine the next 12 months purchase any products that are competitive to epipen autoinjectors. you actually put into practicekt forcing schools, and you're so concerned about his kids, that you actually are limiting thee school's ability to buy pension someone else. so you're saying we will sell to you for $100. we raise the price of 600 if you want to be at 100 bucks he designed us to say yo you wouldt buy this and anybody else to don't answer. that's what you have done. >> well, i disagree with that. >> i because they did not have to buy our pens. >> but if they wanted to get this price speak if they wanted a heavily discounted price, yes. >> heavily discounted price is $112.10, which is where it was before you jack up the price to $600.

so as not a discounted price. ulee discounted it because you raised the price and the music you want at the old price before we jack it up? i'm not asking you a question. this is what you have done. your own document says it. >> they don't have to buy them and everyone is eligible --le >> your own mother is at the lobby to sure they're in although schools. in this article, many members of the board of nasd didn't even know it was a family connection between you between mylan and your mom through you as you out there trying to pass out your guide ashes after talking tout school boards, issues pushing for the epipens to be put in different districts -- school districts. spent i'm sorry. that is completely inaccurate. >> sorry, you can't bite at the old price because unless you promise not to buy from anyone else. that to me as an unfair

monopoly. i yield back mr. chairman. >> now recognize the gentleman from texas, mr. farenthold for five minutes spent i think i understand why you make $18 million, country of the complexity of the drug pricing has me really flummoxed. of course, i won't make $18 million in 100 years serving in congress. so let me ask you, you talk about is wholesale acquisition cost of $608. who pays six or $8 for an epipen? on me, is that just like a manufacturers suggested retail price? >> it certainly was never intended for the wholesale acquisition cost, the system, we certainly didn't make the co system. >> i'm not coming after your company, all right? i'm very tempted to because i think y'all have been behaved badly and have invited government regulation.

i am a free market person. i'm very much for free market, this whole drug pricing system that we have right now makes no sense to me, and a free market can offer in this is where people like me who are consumers don't understand it. i'm going to lay aside my concerned about what your company is doing and why. i think it's wrong, but that's not where i want to get to ato want to get to the pricing. you said -- i'm going to call it manufacturers suggested regional price. so any free market you've got a manufacturer wholesaler, a retailer and consumer. in the drug market you've got the manufacturer, you've got t't insurance company, you've got the pharmacy, you've got thes i doctor, you've got the benefits manager and there are probably some more players in there, all who need to take a little bit of money. we've created a very complexex system.

basically you said manufacturers suggested retail price of $608. album is the only suckers going to pay that to somebody who doesn't have insurance. i don't know. and then you come up with all these rebate plans i get to go to the website and print something out.s you have a discount plan for schools. it's so incredibly complex the airline pricing seems regional. it's not just your product tha'' is the problem. medical prices are skyrocketing. doctors complete to me they're not making any money. insurance premiums are going upo my deductibles are going up. how do we fix this way you can make a reasonable profit and the drug can be available in a way, at a price that people understand, at the doctors know how much i can talk to my doctor about? my doctor today, great, this new pill, you hav have to take it oa day instead of twice a day.ng instead of being a $10 co-pay it

was $120 co-pay. god knows will buy insurance companies been. i'm going to take two pills. in most cases doctors even don't have the information to do that. how do civil five at and get the cost of these down were you to make a profit, the doctor can make some money, the pharmacy to make some money? but people can afford health care. how do we fix this? >> i wish it was a simplecades. answer. the system has been around for decades and it certainly has not kept pace with the evolving health care that our nation faces, the crisis, to your point that health care faces. i believe that first there needs to be more transparency in the system.n in a and certainly welcome the opportunity to sit down in a more holistic way and have a conversation, but the whole supply chain to your point has to be involved. >> let me ask dr. throckmorton.

with the fda, seems like there may be something you guys can do about this. i had a doctor i was talking to just monday. he said i see this ad for the new drug. do you realize that cost over $128,000 a year to do that? if you're not a doctor, and maybe even some doctors don't even know it. should we be required drug coverage to disclose the cost of medication in the advertising? >> that would not be a questione for me to answer. but a very good question. the fda is not allowed to consider costs when we look at drug approvals. >> would you industry be supportive of that? >> i absolutely believe if we want consumers to be able to shop and get them engaged in this is a, the actually have to know how much something costs in order to make -- >> i'm almost out of time. i've got one more question for

you. i applaud your cover provide educate folks about the need for the availability of epipens. what i don't understand is why your marketing costs have to jack up the price that much. if you sell 100 epipens and make, what was your profit, $50 on each end, and you sell 200 epipens at the same price, you're going to make more money, or the same amount of money. i didn't say that correctly. but what i'm saying is that your volume goes up, your profit is up and you don't have to jack the price up. that ought to pay for the advertising. i'm out of time. i'll let you answer if you want. >> thank you. >> did you want to enter? >> i just would say that it's constantly about trying to reach as many patients as we possibly can. w so we continue to invest inac being able to reach and provide access.

>> now recognize this -- for five minutes. >> thank you, mr. chairman. good afternoon, ms. bresch. my understanding when we talkour about mylan and eligibility threshold in your patient assistance program, what has that number come to at this point? what is the about? >> it is i believe 97 -- i believe it's right around 97,000 for a family of four. >> for a family of four. many of us here, including yourself, come from communities where i don't really know thatat many of the families that make 97,000 as a family of four. in the virgin islands the average amount is about 50,000 for a family of four. i would think in other places

your family with that would be the case as well. how do you as a company deal with those individuals who are falling within the margins to be able to afford that? >> so the patient assistance program is for anyone who fallst under that 97,200 would catch anybody come a family of four making less than that would be eligible for the free pens. >> and then what happens to the other families that are below >> that? do you have other programs the? >> anyone below 97,000 would get the free pens. >> anyone below that numberer that's a family of four? >> right. >> so that would mean in places? like myself they would pay how much input the cost be at the point speak with you would be free for any family of four making $97,000 or less. >> so a family of four then, it's about the margin, then goes into, what happens to those families? >> the majority, the

overwhelming majority of our patients, 85%, are paying between 50-$100 but it depends on the commercial plants. we know that about 85% or more are being $100 or less than $50 but that's what we also have the co-pay card, the savings cardat that would like you to put that towards what you are paying at the counter.s they would go against your out of pocket cost. >> if the individuals, not the companies are not the schools that are buying, individuals whi purchase this, what percentage you say fall within the patient assistance program? >> is very small. most of, the percentagewise, the majority of our patients are under commercial plans. >> what percent would that be? >> about 70-75% i believe are in commercial plans.

>> of that, there in commercial plans, how much do those individuals pay? las and you can use -- we also have a savings card of now $300 you can use towards your out of pocket expense. >> okay. that does give some kind of -- it would be good if we could get the numbers then of what those individuals are so we understand what percentage of people are really having to pay the $600, the $400, and the $300 that really seem very outrageous. i'd like to know how many families have to be subjected to that. >> it's because of that growing minority that we then took the actions we took about putting the generic in place. the because the higher data of

those people are face to pay, k the rise of the hired to do the book plan as you know has grown tremendously. you know, this year alone. so that is having more out-of-pocket cost and because of that, it is why we tell, said, is set to put the generic in that would lower the cost for everybody. >> you are doing other things as well. i understand you have lobbying efforts to give preventative services under the affordable care act.ve is that correct? >> yes, you definitely should be on the preventative drug list and how much resources have been put to a? >> did evolve. it's been a internal resources trying to educate one about the need for epinephrine auto

injectors to certainly make sure everyone -- >> when you say education, who would that be towards? >> towards the formularies who make the decision about whether to put a product on. >> what are the formularies fore those of us who are uneducated? >> the large pharmacy managers. there are several -- many companies are the pharmacy managers and the ones that have some decision about what can go on the preventable drug list or not for the lives they cover. >> i'm out of time. >> we now recognize the gentleman from north carolina. >> thank you, mr. chairman. thank you both for being here. ms. bresch, let me just get by. parents are upset with the cost

of the peter pan and the potential of not being able to help their children. that is the problem we have. i started getting calls when i didn't even know it was an issue from people saying the out-of-pocket expenses 600, 700. the insurance wouldn't cover it. and now you've come up with this unbelievable marketing plan that only was just that there is unbelievable profits. i can't imagine anybody in the right mind coming up with a plan like that. just saying we screwed up good we had 96% of the market we increased the prices. please forgive us. and now you're putting out a generic and coming up with a different plan for a great product. i guess my concern is that they look at this, you are being

thrown in with other witnesses and you're saying and not share. whoever really set out to gouge the american people. my question is do you believe the increases you've done with the market share that you have was inappropriate in a mistake from a marketing stance? >> we believe starting eight years ago making sure that we could not only believe in public places that reach more or less similar patients was absolutely critical. >> how much of this is a medicaid, medicare or private insurance, private pay issue for you are charging different amounts to different people? that's another problem i keep

hearing. it depends what plan you are on and whether you are covered by high deductibles are not. how much of that is just the nature of the pharmaceutical business that you charge different amounts to differentet people. >> you are correct. all pharmaceuticals are all different under every different plan. >> so you're pricing model is not like you say it cost acts, we make x. you have to come up with all kinds of convoluted ways to make a profit depending on theou coverage or the individual patient. is that correct? >> that is why we can't point you receive on average. >> hide you afford to give free pens to any family that makesba less than $97,000 a year. how are you according to do that based on the private margin? so that just means that if you make $100,000 a year, you are going to have to pay a big

amount of money for everybody else. is that what i'm hearing? >> sewer patient assistance program is to help thosese families, but the reality -- the majority of the patients fall either with the commercial insurance that are facing out-of-pocket costs. >> your increase cost is being borne by insurance for their employees. is that employees.re establish your same question is a giveaway figured into that cost? >> milk. >> giving away free drink for two people make $97,000 or less into the cost of your product. >> what gets factored into the cost of product firm free epipen to our epipen for school program is part of the overall cost.aced

the really the uninsured patient with the wholesale acquisition cost is that growing minority is why we took this step we did. >> i would ask you to revisit that. let me come to you. this is another hearing with another problem. part of the problem is the fda has a laborious approval process for any drugs whether orphan drugs or anything out in your ten-month approval process i don't buy it. is that your testimony that you get drugs approved for just a response? october 1st we are committing to ten-month review time. it's a quiet -- high-quality ma application. the >> you buy time with your letter that may or may not be really in

the approval process. you shouldn't be using those letters to do that. those letters -- when did you stop?tt i've got copies of the bank to see them. when did you stop? >> we should be using letters. >> when did you stop using those letters as normal process? >> since 2012. >> i have got letters since then. i will yield back. the >> we now recognize the gentleman from michigan -- gentlewoman from michigan, ms. barton. >> thank you. i have a question for ms. bresch. thank you for being here. i understand this process of t''

company, but under your thumb, the epipen has become the first billion dollars drug. is that correct? >> yeah. >> in 2014, your company generated 1.19 billion in sales only in their specialty drugs that should make us your company makes a lot more. p. mackey s. >> according to your sec filing and this is a quote. as a result of favorable pricing and increase revenue in 2015, your company generated $1.2 billion in sales revenue driven largely by the continued strong performance of the epipen autoinjector. according to a press release issued in february of this year,

it your earnings per share also when nothing 2015 by 21%. this increase was, and i quote, at the high end of our previously communicated guidance range. is that correct? >> yes. >> your company is continuing to make incredible profits this year. is that correct? >> yes, our company is strong and we believe that's the best way to serve our patients. >> recently while discussing the epipen massive price increase, no one more frustrated than i am and so, is it true that you were frustrated you didn't raise it higher creating a billion dollars drug with the goal you

acquired the ip pen -- epipen and you're frustrated didn't raise it more? >> because the system is so opaque, it is hard -- it is complicated trying to shareceivw today that he don't typically have that transparency of what the company actually receives and let the wholesale acquisition cost is. so that was a frustration. >> on september 15th, you sent a letter saying your sales revenue from over 27 -- 2700 products is 11 billion this year and the epipen will generate 1.9 billion net sales. your company expects to make 9% of its revenue this year with one of their products.duct can n >> epipen is less than 10% of

our overall revenue. >> or one product can generate 9% of your revenue.have this is the frustration. not that she don't have a product, not that you don't have your free product, but where is the come to me in responding to this outcry that i have received an average member of congress. what do you plan to do? do you hear the cry from theyoum constituents? and while you and your come to me and the employees enjoy this profit-making, where's the sensitivity in saying that i hear this we have made tremendous amount of money. is it normal for one product ouu of 2700 drugs.

one product is almost 10% and you have increased that. well it's been sitting there at the boardroom, i will say this is great. you are doing a great thing. you're bringing money in, making money. where are you in the company didn't say what do we do about the outcry of the people of this situation? >> and we did listen and take immediate action to put a generic and half the price. that's truly an unprecedented action for a brand to do that. so we did listen and we believe would take unprecedented action on the market. >> you control that generic and you're actually making a higher

profit. >> now, we are not making a higher profit off the generic.vg >> i yield back. >> members are advised there is a vote on the floor.. anticipated votes will go between an hour and an hour and a half. mr. mulvaney from south carolina for five minutes and that we will reconvene no sooner than 6:30, but it might be later when we get done with that those series. >> i thank the chairman. i may not take all five minutes. as someone who considers themselves to be a free-marketg republican, the party's been uncomfortable with where they carried has gone. i wish we were talking about why mylan can charge $600 for desert $300 for a generic or whatever. that would be a really good discussion about why this same exact product hospital in

$100.150 in europe. the same thing from the same manufacturer costs 150 bucks. you can get it over-the-counter for $75. and there's nine different people making this in europe because it's easier to get drugs approved that it is here. we talked about the new ten-month playing and you keep telling us we were ten-month play in that starts october 1st. it makes you wonder how long did it take before this became a big national deal. my guess is it takes a long time to get this stuff approved.is one of the reasons they can charge $30,600 and tried to get products approved. a epipen competitor would be more difficult to get stuff approved because it's both a drug and delivery advice. this stuff doesn't cost anything. this is one of the oldest chemicals that we use.

there's 10 cents and 95 said it filed. it's adrenaline. it's really easy to make the stuffing get this stuff.ake the so if you can charge $600, why are more people rushing in to make this stuff so they can get a piece of this huge market because it's too hard to get this darn stuff approved. i wish we could talk about what you talk about, how crazy the craziness. because it is bizarre and we buy stuff in the health care market. the reason this is more expensive every single year with everything else in this room gets less expensive every year is because it's in the health care market which doesn'tha function properly.si we should talk about that and how hard it is to figure out ho much does cause before it comes. out of your product and just to be handed a customer.

we didn't talk about that. we talked about your profit margins of people who have no clue what that means. we talked about distribution facilities, board meetings, your salary. we talk about prices that make a lot of us look really good. there's no way he could earn $18 million a year. that bothers me about t comfortable with that. but at the same time and i've had this conversation with other people who sat in the samergingo much o chair.r too little you get what you deserve. not because you're a bad personn or charging too much or tooe little. no one here has any clue. we don't like it. we know that, but we don't understand the cost for the distribution system.out what we do know is you've been in this hallway is to ask as to make people buy her stuff. there is loss clause in 11 states now they require schools

have epinephrine is to immediately deliver a fashion. you've lobbied us to make a taxpayer by her stuff. by the way, i was here and we did it. we did in 2013 and went by voice vote. one of those things that happens or not on the floor. the white house called it the pat buchanan will indicate this by default financial problem. my guess is that didn't happen by magic. they may have happened because your mother works for the state for the state school board association. that is a u.s. senator. but you came and asked the government to get in your. so here we are today. i was just as uncomfortable with some of these questions is over there. i have to defend both my republican and democrat colleagues because you've asked for it. if you want to coming to washington in the state capital and lobbyists to make us buyand

your stuff, this is what you get. you get a level of scrutiny and a level of treatment that would ordinarily grow my hair but you asked for it. i wish it weren't like that. i wish you could go make your stuff and i wish he didn't get government involved but that's not the world we live in. i have to defend every single question asked today and i wish i had questions of my own but i've only got five seconds flat so i'm not going to get a chance to ask. >> the time is expired. the committee will stand in recess in reconvene note earlier than 6:30. >> a little bit during the hearing, betty carter priced ms. bresch on the cost increase. >> thank you, mr. chairman. can i inquire view the witnesses took him out than they are still

under rose. just want to make sure. ms. bresch, have you ever seen a child have an anaphylactic shock? have you ever witnessed that? >> i haven't. >> you have not? have you ever gone up to a pharmacy counter and carried a pack of two epinephrine into epipen and told the mother of a child who's had anaphylactic shock, who has an allergy that the price is going to be $600. >> no. >> have you ever seen a mother cried because she can't afford the medication for her child? the reason i ask you this is because i have. i've experienced it. i've seen it. i seen a mother have to call family members to see if she can get the money together to pay for this medication that she knows her child has to have. i have what is to first in.

none of us are without blame here. and i include my profession as well. let me ask you a couple yesterday of questions. first of all come in the 608 wholesale acquisition, is that a wp? >> no, sir. >> wholesale acquisition is $608. you said your company receives $274 after rebates and allows this question to select to take out expenses like manufacturing, acquisition costs, packing, regulatory compliance, your profit is even less than that. is that correct? >> correct. that would be the $50 per pad. >> after you do that, do you have any contracts with any pharmacy managers?

>> yes. >> you do have contracts? can you describe the contracts very briefly. >> the contracts are around products -- multiple products to participate on the formularies that patients have access to the product. >> we established earlier over half of the list price does not go to mylan. you know how much they received? >> i don't have a break down between the channels but that is where showing -- >> i understand, but do you know specifically how much the pharmacy benefits manager receives? >> i don't love the breakdown between those for budgeted between the pharmacy, insurers or wholesalers. >> nor do i and i'm the pharmacist. in fact, nobody knows. there is no transparency.

do you know how much they receive in rebates and other seas related to that at the pen when it's adjudicated through a pharmacy? >> i don't. >> nor do i. they tell me how much i'm supposed to charge the patient. i don't know how much you're getting, i don't know how much the pbm is getting. that's where transparency comes in. that's what we need. do you know how much of the epipen related savings and rebates they get that question are you have contracts with pbm. how much do you get that? >> i don't know. >> remember you are under rose. how much do you get back in rebates from a pbm? >> i don't want to give you an inaccurate number.

>> do you know? can i ask for that information? >> i will certainly go back and look at that. i'm saying i don't want to give an inaccurate number. >> you don't know how much the pbm receives. nor do i., nor do anyone else whether the insurer or the premises, none of us know. what we do know is prescription drug prices have soared and still have the profits of pbm's. they are in the billions of dollars. and so we have more transparent meet in the pbm market, we are going to continue to see these kind of cost increases. that is why we need pills like resolution 244, my good friend doug collins from georgia has introduced this bill dealing with the transparencies.

this would help us and take a step towards transparency. mr. chairman, i want to thank you for holding this hearing today and i want to reiterate my request that i've made to you in this committee from time to time about further investigating how deceptive this is our impacting drug prices. would you agree with that? >> i certainly would agree transparency is needed if the health care system has evolved dramatically and i'm sure as you have seen is a pharmacist, the system hasn't kept pace with this evolution of the health care system. >> system hasn't kept pace. tv ads have had billions of dollars in profits. i have to sit there and take a prescription to the counter to a mother whose child is suffering from anaphylactic shock and

watch her cry and have two watcher call family members to get the money to pay for this medication and we don't know where it's going. you say it's not going to you. where is it going? i need to tell her. >> the most immediate thing i could do was put a generic into the market. >> don't go there. you know i know better than not. that is a crock and i know that. it is. there is no difference whatsoever. >> we cut the price. >> you cut the price in half. don't do that to me. don't try to convince me you're doing us a favor. you are not doing a favor by that. you could've dropped the price of epipen just as well, but instead he said we are going to make a generic. >> to the point of the wholesale acquisition cost of getting to

those patients in making a difference to make sure everyone who needs a epipen has one, i couldn't ensure of the branded site of this channel that would get. >> you did not want to cut the price on the epipen. because you would've gotten your rebate from this pbm like you're getting now. i am waiting for the information that you have promised me you assent to this committee. i am going to hold her to die. >> sarah, what i can tell you -- sarah, the most immediate aim was to put a generic and because they bypass the formularies, everything you're just describing. >> are you getting your rebate? are you getting a rebate on the generic version of epipen from the pbm? >> i don't -- those are still under negotiation. we haven't done those yet.

>> but are you planning on it? >> i don't know. i honestly don't know. >> remember the oath to tell the truth. >> i'm not negotiating, but i can tell you as you know the formularies, it is very different than on the bright side of the house. >> would the gentleman yield? i want to help clarify something. >> i yield. >> i want to take this one step further. do you knows what you get from the pbm's for the regular epipen, how much rebate that the gentleman was talking about? >> that's what i said. >> you can get is that information? >> i absolutely will go back and work on that. >> you expect to be getting rebates from generics. is that right? yes or no.

>> he asked specifically about the pbm. >> i did nasty guy. i said are you getting >> we pay rebates on the generic as well. >> that's not what he's talking about. >> i can't sit here and tell you what comes back on the generic. these discounts and rebates paid but it's a much smaller degree of the generic. >> mr. chairman, recalling my time. ms. bresch, i hope you never have the experience of going to a counter in telling the mother of a child who has suffered from anaphylactic shock that she needs to pony up $600. i hope you never experienced that, in that, ms. bresch. mr. chairman, i yield back. >> i hope you're enjoying your thursday morning so far. past the september 30th

deadline. at 11:00 this morning about to formally start debate on the bill and according to cq last evening there was no indication of an event had been reached but one key senator did say the negotiations i've actually done. now for live coverage of the u.s. senate here on c-span2. the president pro tempore: the senate will come to order. the chaplain, dr. barry black, will lead the senate in prayer. the chaplain: let us pray. eternal god, protector of nations, in a turbulent world when we know not what a day will bring forth, we look to you, our

help in ages past and our hope for the years to come. today, we ask that you would use our lawmakers as agents of reconciliation and justice. may their labors hasten the day when justice will roll down like waters and righteousness like a mighty stream. we thank you, o god, that even during seasons of challenge and unrest, we have the calm assurance of your presence. even in the valley of the

shadows we find comfort because you are with us. lord, forgive us for the many times we have failed to humble ourselves and pray and seek your face and turn from evil, so that you will hear our prayers, forgive our sins, and heal our land. we praise you that the best is yet to come for this great land, and we anticipate your providence enabling us to be blessed beyond anything we can ask or imagine. we pray in your wonderful name.

amen. the president pro tempore: pleae join me in reciting the pledge f allegiance to our flag. i pledge allegiance to the flag of the united states of america and to the republic for which it stands, one nation under god, indivisible, with liberty and justice for all.

mr. toomey: mr. president? the presiding officer: the senator from pennsylvania. mr. toomey: i rise to speak on the preventing animal cruelty and torture act. it is known by its acorrect me if i'm wrong anymore pact. i want to thank senator blumenthal for cosponsoring this. this is a commonsense bill, mr. president. this would be the -- it would be the first federal law to protect all animals from torture, maiming, and abuse. the pact act allows federal law enforcement to intervene when this kind of abuse occurs, where the federal government has jurisdiction. so federal property, u.s. territories, and in relation to interstate commerce. the act specifically bans the most appalling forms of animal abuse. it's often known as crutching. this is when a deranged individual actually tortures and sometimes sexually assaults

household pets for some perverse enjoyment that they get. and there are people who are in the business of soliciting animals over the internet so that they can conduct this appalling activity and then sell the images. it's unbelievable, but it happens. and, mr. president, it's not controversial. stopping this kind of obscene animal abuse is not controversial at awvment there are no republicans objecting to this legislation. the next democratic leader on the other side is a cosponsor, senator schumer is a cosponsor of this legislation. there are 27 democratic cosponsors. over half of the democratic caucus are cosponsors of this legislation. a majority of house members have cosponsored companion legislation. we worked with all the relevant committees to make sure all querns were addressed. -- concerns were addressed. it has been endorsed by every major animal organization in

america. the animal welfare institute. we worked with agricultural and sporting groups. there is no organized opposition to this at all. and, mr. president, it's necessary because there are many hundreds -- perhaps thousands -- of cases of this kind of horrific abuse of animals occurring every year. we've seen appalling cases, i will submit to the record examples that are too appalling to discuss. frankly, it's just that bad. but i will submit that to the record. and we need to bring this to an end. it's also important for me to point out briefly that academic research has found a very strong correlation between people who abuse animals and then subsequently commit violent crimes against human beings. this has been documented by the national institute of mental health. they say that a history of sexually assaulting animals is the single largest risk factor and strongest predictor of

increased risk of committing child sexual abuse. a 2013 northeastern university study found that half of all school shooters had harmed animals before they harmed animals. so, mr. president, it's very clear if we can stop people from this appalling abuse of animals, we will also be protecting human beings. that's why law enforcement organizations enforce my legislation as well. the pact act is endorsed by the national sheriffs association, the fraternal order of police, the association of prosecuting attorneys, nearly 200 local law enforcement agencies. so, as i say, mr. president, this is a this is not confusing. it is not complicated, and it is not controversial. animals are not adequately protected across america. many, many of our constituents feel very, very strongly and passion matter nationally -- passionately about this, as well they shoovment and passage of this legislation -- as well they

should. and passage of this legislation will help people as well. therefore, i ask unanimous consent that the committee on the judiciary be discharged from further consideration of s. 1381 and the senate pled it its immediate consideration. further, that the toomey substitute amendment be agreed, the bill as anded be considered read a third time and and pass and that the motion to reconsider be considered made and laid on the table. the presiding officer: is there objection? mr. reid: mr. president? the presiding officer: the democratic leader. mr. reid: i reserve my right to object. mr. president, it's stunning that my friend from pennsylvania would come to the floor and abandon all the principles that we've heard the new republican majority wants to have in the senate. first of all, how about having a hearing? no hearing on this bill. and i'm -- i have -- i would put my support of animals and animal

abuse with anyone's. i have been a human society -- the human society has supported me every time i have run for office. peta has supported me. all the animal rights groups. so wouldn't it be a good idea to follow what the republican leader said what we're going to do in this new senate -- we're going to have hearings and we're not going to bring bills to the floor unless we've had a hearing. well, that hasn't worked out so well. mr. president, we've been out of session recently for seven weeks, lots of times -- a lost time to do all kinds of things. but we have done nothing. the longest recess since 1956. and with the break that is anticipated by my republican colleagues, we're going to break

all records going back we don't know when, we haven't been able to determine. it could be back to the depression, could be back to world war i that we have not worked hear. so all this sadness about not getting something done on this legislation crisis for relief, relief to the american people. -- that we start working again here. we've not only had months to deal with legislation like this, but we've had more than six months to deal with something that's vitally important to america, for sure. every place in america it's worked -- nevada, pennsylvania, kentucky, every place. now, what is that? how about having a full supreme court? the man that opened the senate today, orrin hatch, the president pro tempore of the united states senate, said publicly so everyone could hear,

merrick garland would be a consensus nomination for the president. well, we satisfied his consensus appetite, and we brought forward, through the president of the united states, merrick garland on march 16. we waited, we've waited. nucially no -- initially no one would even meet with him, no republican would even meet with him. no hearing, of course no vote. we're happy to consider legislation, all kiefneds of legislation. but -- all kinds of legislation. but to pick and choose what they're going to do, leaving volumes of work undone here in the senate, volumes of work undone, is something that's incredulous. so i think it would be a good idea that before we rush ahead on legislation that's had no hearing that we have a hearing

for merrick garland, that we have a vote on merrick garland. if republican senators want to vote against merrick garland, let them do it, but let's go through the process. so i ask whether the senator from pennsylvania would be willing to amend the unanimous consent request as follows: that the senator from pennsylvania modify his request so that following a vote on tftion of consider be confirmation of the nomination of the consensus nominee, merrick garland to be justice of the united states supreme court so we'd have nine members of the court, that the senate proceed to immediate consideration of this legislation, s. 1831. the presiding officer: will the senator modify his request? mr. mcconnell: mr. president, that was a consent request, was it not? mr. reid: yes, it was. mr. mcconnell: i object. mr. reid: i object to the

initial request. the presiding officer: objection is heard to the original request. mr. toomey: mr. president? the presiding officer: the senator from pennsylvania. mr. toomey: let me just briefly observe what's going on here. i don't think it is any mystery to anyone who's been following -- been following what's happening here. the presiding officer: the senator from pennsylvania yields. mr. reid: mr. president, came to the floor -- i'm busy, i'm sure he's busy. i came to the floor to be a gentleman and as how him to go first. i have a speech to give. i came here. i have agreed to let the republican leader -- i don't need to agree -- i said that i would be willing to do this right now so the republican leader could give his speech later. but i mean, i think it's rude to say the least -- now he wants to give a speech here and prevent me from giving a speech to the senate. i think that's not being very

collegial, and i'm disappointed that he would do this. so he can go ahead and talk as long as he wants. i'll wait. mr. toomey: mr. president, i believe i have the floor. the presiding officer: the senator from pennsylvania. mr. toomey: and i would observe for the record that we've been looking for about two weeks now to find the opportunity to do this, to work with every member of the other side, and we a come dated the leader -- and we accommodated the leader's schedule when he said this was the only time he could do this and one other time. look, we all know what's going on here. the leader stafnedzs up and -- stands up and complains that we've not been productive and gotten things done. then when i propose an agreement on a bipartisan bill that has a majority of democratic senators as cosponsors, that has been thoroughly vetted and supported by every outside group, he raises a completely unrelated issue and uses that as the basis to block this noncontroversial legislation. this is exactly what the american people are so

frustrated about with this body and some of the leadership in this body, when this kind of completely partisan-driven agenda blocks progress, even on modest and noncontroversial legislation. i yield the floor. a senator: mr. president? mr. reid: so the record is very clear, i've been asked to come to the floor on two or three different occasions to meet his schedule. i was here. he wasn't. make sure the record reflects that. mr. president, the senate since almost two years ago has been run by the republicans. the schedule is set by the republicans. i don't set the schedule anymo anymore. and to have my friend, the

senator from pennsylvania come here and say, well, this is really important, very indicated how i feel about animal cruelty. i've spoken out about all kinds of animal cruelty for more than three decades. but i've -- but i also have some concern as do the american people that senator, like my friend from pennsylvania who have helped block a simple hearing and a vote on a man who is a consensus nominee to be a supreme court justice is wrong. i'm not a big fan of polling but you could take a poll in your front room, at a mall or have one of these professionals come in who claim they know what they're doing. overwhelmingly it would show the american people want to vote on this. the supreme court being short one member has stopped work from being done for the good of this country, important cases that should have been determined

haven't been determined. now they have to go on with whatever the lower courts say. that's not our system of justice. so i hope everyone understands that it would be extremely fair and important to have a hearing and a vote on merrick garland. i can't understand the lack of courage of my republican friends like the guy that just left here, the senator from pennsylvania. you don't like merrick garland? vote against him. vote against him. but don't be blocking him. for the longest time in the history of america, a supreme court justice has been stopped, stopped from even having a hearing. it's never ever happened before, never in the history of this country. i'll come and talk on my subject a little later. i yield the floor. i ask that the chair announce the business of the day. the presiding officer: neppedz, the leadership time is reserved. under the previous order, the senate will be in a period of

morning business until 11:00 a.m. with senators permitted to speak therein for up to ten minutes each. the presiding officer: the clerk will call the roll. quorum call:

a senator: mr. president? the presiding officer: the senator from georgia. mr. isakson: are we in a quorum call in. the presiding officer: we are. a senator: i ask the quorum call be vitiated. the presiding officer: without objection. mr. isakson: mr. president, we're reaching that time of year where some of our colleagues will retire, some may be retired without wanting to be retired and we'll have new colleagues come into the senate and house next year. i want to pause for a moment and pay tribute to a great georgian who will be retiring at the end of december who served our state for six terms in the united states house of representatives mr. lynn westmoreland. he's a true entrepreneur, a native georgian, a dedicated fire, outstanding businessman, and an unquestionable leader in the united states house of

representatives. as the ranking member of the intelligence committee in the house, he's been instrumental since 9/11 seeing to it we remain safe and we have the information we need to make the decisions we need to make to keep america safe. i go back to lin westmoreland a long time. "was in the brokerage business for 43 years, dealt with brokers all the time. one was lin. he found his own construction company called law construction. he was an outstanding home builder in our state. he built that business to be one of the best building and construction businesses in our state and i'm proud of what he accomplished. but he's also a guy that gives bk so he decided to run for public office, ran for the georgia house of representatives from fayette county and won and served 12 years in the georgia house rising to republican leader in the georgia house of representatives and he was the leader at the time for the first time in history, georgia republican party went from the minority party to the majority party. where he's been he's been a

leader and fighter for what's right for our country and be a dynamic leader for our state. he's married to jone. they have three children and six grand children. she's been a great supporter of len side by side since they met at 15 and gang their marriage a few years later. he will be retiring and we will miss him. we want to say thank you to len for all he's done in georgia and for america in the congress of the united states. he will be sorely missed but he will be appreciated always as a man of courage, a man of conviction, a man of commitment and a true son of georgia that excelled in the united states of america. and i yield back and note the absence of a quorum. the presiding officer: the clerk will call the roll.

quorum call:

quorum call: