House Candidate Reddy’s Ties to Pharmaceutical Industry Scrutinized
Prasanth Reddy, a U.S. House candidate, has received significant financial backing from the pharmaceutical sector over the years, raising concerns about potential conflicts of interest. Some companies in this sector have actively opposed measures to reduce prescription drug prices.
Reddy, a Republican, is contesting the seat held by Democratic Rep. Sharice Davids in Kansas’ third district. Before entering politics, Reddy was an internal medicine specialist.
According to the Centers for Medicare & Medicaid Services, which monitors financial contributions to medical professionals, Reddy received over $78,000 from drug and medical device companies between 2016 and 2021. This amount comprised $64,246 in cash equivalents and $14,362 in in-kind services, with Merck & Co. being the principal donor.
It is not unusual for doctors to receive payments from pharmaceutical companies for consulting, speaking, and research activities. Research indicates that such payments can influence doctors to favor brand-name drugs from these companies.
Despite the commonality of these payments, their existence raises potential conflict of interest issues if Reddy were to be elected to Congress.
Reddy’s personal financial disclosures reveal investments up to $651,000 in four drug and lab science companies, including up to $50,000 in Merck & Co and up to $1,000 in Organon & Co OGN, a subsidiary of Merck & Co.
In 2023, Merck & Co filed a lawsuit against the Biden administration to prevent Medicare from negotiating lower drug prices for seniors. The 2022 Inflation Reduction Act, which passed without Republican support, gave Medicare this negotiating power and capped out-of-pocket insulin costs for many Medicare beneficiaries at $35 per month.
Reddy’s campaign has also amassed over $400,000 in donations from groups associated with lawmakers who opposed the Inflation Reduction Act. Among these donors, Grow The Majority, a political action committee led by House Speaker Mike Johnson, contributed nearly $213,000.
In contrast, Rep. Sharice Davids supported the Inflation Reduction Act.
A spokesperson for Reddy did not respond to requests for comment on this matter.
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