The Biden administration released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb and Pfizer among them.
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Aug 29(Reuters) - The Biden administration on Tuesday released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program that covers 66 million people, with big-selling blood thinner Eliquis from Bristol Myers Squibb (BMY.N) and Pfizer (PFE.N) among them.
President Joe Biden’s signature Inflation Reduction Act (IRA), signed into law last year, allows the Medicare health program for Americans aged 65 and over to negotiate prices for some of its most costly drugs.
Wells Fargo analyst Mohit Bansal said the savings made from negotiations on Jardiance, Januvia, Farxiga and Insulin Aspart, which cost the agency about $16.5 billion, could potentially free up Medicare’s budget and make it easier to cover diabetes or obesity drugs.
Drugmakers whose medicines were targeted on the list, including Novartis, Eli Lilly and Merck said they believed the price-setting provisions would stifle innovation in the sector and impact quality of care.
Bristol Myers CEO Giovanni Caforio said in an interview the inclusion of Eliquis would not impact its long-term strategy, particularly as the drug loses patent exclusivity in 2028, two years after the negotiated prices would take effect.
BMO Capital Markets analyst Evan Seigerman said that while the list includes many big revenue generators for drug companies, many of them will face competition shortly after or even before 2026 which was expected to lessen their profitability.
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