Pfizer, AbbVie, BMS among firms at risk of U.S. drug price negotiations - report

Bristol Myers (NYSE:BMY), Pfizer (NYSE:PFE), and AbbVie (NYSE:ABBV) are among firms likely to face Medicare price negotiations for some of the key blockbuster medications, Reuters reported Monday, citing five Wall Street and academic analyses.

The Inflation Reduction Act (IRA), which took effect on Jan. 01, permits the Centers for Medicare & Medicaid Services (CMS) to negotiate prices for Part B and Part D drugs covered under Medicare with revised prices for the first ten drugs taking effect in 2026.

Citing an analysis of five lists containing 27 drugs as prepared by Wall Street analysts and academics, Reuters reported that blood thinner Eliquis, marketed by Bristol Myers (BMY) and Pfizer (PFE), appears on every list.

Pfizer's (PFE) breast cancer therapy Ibrance and Imbruvica, the blood cancer therapy marketed by AbbVie (ABBV) and Johnson & Johnson (NYSE:JNJ), have also made it into every list.

Meanwhile, Novo Nordisk's (NVO) diabetes therapy Ozempic, Astellas Pharma's (OTCPK:ALPMF) (OTCPK:ALPMY) prostate cancer treatment Xtandi, and Xarelto, an anticoagulant marketed by Pfizer (PFE) and J&J (JNJ) have appeared on three lists.

Lists vary as analysts have their own forecasts for drug sales, and it is not certain if the government will consider gross sales or net sales for pricing negotiations.

Last year, based on Medicare spending in 2020, Bank of America compiled a list of Medicare Part D drugs that could be subject to pricing negotiations.