BioSpace’s Post

As we near the conclusion of maximum fair price (MFP) negotiations for the first 10 drugs selected for Medicare Drug Price Negotiation Program through the Inflation Reduction Act at the end of this month and await the publication of the negotiated MFPs in September, initial indications are that the impact on manufacturers will be quite manageable despite initial concerns. Given we are in an election year, there were major questions regarding whether the current administration would want to make a big splash and push the MFP down significantly vs. maintaining relatively status quo for this first round of negotiations to not cause an uproar. Though we still eagerly await to see the published MFPs, it seems we have our answer. #IRA #pharma #Medicare #CMS #pricing

For the first time, the U.S. government has the power to directly negotiate with drug companies the prices of medicines prescribed to Medicare Part D patients. The negotiations kick off today, as the Biden administration sends to manufacturers its initial offers for the first 10 drugs selected for negotiation. Months of talks will follow, all while the pharma industry is waging a legal challenge to the portion of the 2022 Inflation Reduction Act that authorizes the negotiations. The industry opposes the process and hopes to block the reduced prices from taking effect. What do you think of the new Medicare drug-price negotiations? #drugprices #inflationreductionact

And the fun begins and am sure most of these drugs are already in this window of suggested discounts. HHS did not disclose details on the offered prices, but a report from Reuters suggested the proposals could represent discounts ranging from 25% to 60%. Price negotiations are expected to end August 1. If the government and drugmakers agree to a maximum fair price, it will be published by September, and those new prices will take effect in Medicare beginning in 2026. One point of contention drugmakers had with the IRA's Drug Price Negotiation Program was the disparity between how biologics and small molecules were treated. A bipartisan bill was introduced to Congress this week to rectify that difference #inflationreductionact #governmentcontracts #healthcarepolicy #marketaccess https://lnkd.in/eqb8_97t

Two things can be true at once. Yes, the effects of the first 10 negotiated products might not impact the pharmaceutical companies too much AND it could hurt them (and innovation) in the long term. The first ten drugs that are up for negotiation are HIGHLY negotiated already. Just instead of being negotiated by the government, they are negotiated by plans/PBMs because they are in competitive spaces. We don't yet know what the government negotiated the products at but if a drug is already being negotiated at 50% off, there isn't that far to go. Plus, the expectations of negotiation have already been built into the stock price. And what CEO is going to stand up and say "Huh, that surprised the hell out of us." These are publicly traded companies and have shareholder responsibilities. Calm and steady is a better look.

#CMS released their negotiated prices for the top 10 best-selling drugs yesterday. While #pharma is mostly satisfied with the limited impact these reductions will have on their bottom line, it's anticipated that CMS will enforce price cuts more aggressively in 2025, when it releases its target list for 2027 #Medicare price reductions. For now, these new Maximum Fair Prices (MFPs) for 1 month's supply will go effect in 2026 (compared with CURRENT list prices, which may differ from 2023 CY list prices): ▶ Eliquis: $231 (from $594) ▶ Enbrel: $2,355 (from $7,401.84) ▶ Entresto: $295 (from $688) ▶ Farxiga: $178.50 (from $582.25) ▶ Fiasp/NovoLog: $119 (from $134.37-$558.83) ▶ Imbruvica: $9,319 (from $16,391) ▶ Januvia: $113 (from $573) ▶ Jardiance: $197 (from $611.10) ▶ Stelara: $4,695 (from $12,748) ▶ Xarelto: $197 (from $542) Official CMS Medicare Drug Price Reduction Fact Sheet: https://lnkd.in/eTwESshA A great summary of the reductions from #WSJ : https://lnkd.in/eQ7vd8t3 #Health #Healthcare #InflationReductionAct #PriceNegotiations https://lnkd.in/e5uhPFfA

Thoughts on this? >> Is IRA drug price negotiation unconstitutional? >> Comment below! >>> lqventures.com #strategy #competitiveintelligence #marketing #pharmaceutical #biotech #productmarketing #healthcare #pharma

Sometimes two things that seem opposing can be true. The Hill has an article about how pharmaceutical CEOs are hinting that the negotiated prices may not be so bad. And then you have this quote, “There also is just the reality that they have been saying that the sky has been falling. And if CMS comes out with a completely reasonable price, that does a lot to their credibility" (AARP.) Let's pause and chew on that. Yes, this round of prices might fit within what CEOs and investors anticipated (more or less). Many of these products are already subject to intense negotiations. But let's not let that fool us into believing there's no harm done, now or later. This was never about a single round of "pseudo-negotiation." The ceaseless clock of negotiations chips away at innovation, particularly on follow-on indications that get caught in the small molecule clock. That's no idle speculation. https://lnkd.in/eBtFD28w

The Competition and Markets Authority (CMA) has successfully defended its decision in a significant drug market-sharing appeal, reinforcing its role as a watchdog in the UK market. #antitrustlawinhealthcare #cartelinpharmaceuticalindustry #CMAcartelinvestigation #CMAdrugmarketsharingappeal #CMAvspharmaceuticalcompanies #competitionlawenforcement #hydrocortisonepricefixing #illegalmarketsharingagreement #NHSdrugpricingscandal #pharmaceuticalmarketcartel #thxnews

https://lnkd.in/gB8qJvuf "The middlemen between drug makers and health insurers that claim to save patients money by negotiating deals to save on drug costs., pharmaceutical companies and health insurers play games to make money. PBMs claim they save patients money by negotiating deals. But evidence would say otherwise. These games leave patients with higher medical costs, cause them to skip doses of their medications, split their pills or force them to abandon treatment altogether. Learn more about some of the games below."

Check out these 8 evolving trends in employer plan #pharmacy benefits from The Baldwin Group. Understanding the key factors driving prescription drug costs is the first step to finding effective solutions for reining in rising prices. Read more in our whitepaper 🔗 https://lnkd.in/eAUeNNGz #TheBaldwinGroup #ProtectingThePossible #EmployeeBenefits