A Step Closer To Cheaper Drugs For Americans: Price Negotiation And Its Implications
Portfolio Pulse from Vandana Singh
The U.S. government is set to negotiate prices for 10 drugs as part of President Joe Biden's Inflation Reduction Act, which could lead to significant savings for taxpayers but challenge the profit margins of pharmaceutical companies. Johnson & Johnson's Xarelto and Eli Lilly's Jardiance are expected to be on the list. The new act could lead to approximately $36.5 billion in savings for the U.S. between 2026-2028. However, drug manufacturers warn that limited profits might stifle innovation.
August 28, 2023 | 2:05 pm
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NEGATIVE IMPACT
Bristol-Myers Squibb's Eliquis is a significant expenditure for Medicare. The new act could impact the company's profit margins.
The price negotiation could lead to a decrease in the price of Eliquis, potentially impacting Bristol-Myers Squibb's revenues and profit margins.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Johnson & Johnson's Xarelto is expected to be on the list of drugs for which the U.S. government will negotiate prices, potentially impacting the company's profit margins.
The price negotiation could lead to a decrease in the price of Xarelto, potentially impacting Johnson & Johnson's revenues and profit margins.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Eli Lilly's Jardiance is expected to be on the list of drugs for which the U.S. government will negotiate prices, potentially impacting the company's profit margins.
The price negotiation could lead to a decrease in the price of Jardiance, potentially impacting Eli Lilly's revenues and profit margins.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Merck's Keytruda could become a negotiation candidate in 2028, potentially impacting the company's profit margins.
If Keytruda becomes a negotiation candidate, the price negotiation could lead to a decrease in its price, potentially impacting Merck's revenues and profit margins.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60