Medicare Price Negotiations for Drugs Begin in 2026: Eliquis Among Most Impacted

The Centers for Medicare & Medicaid Services (CMS) has disclosed a list of the initial ten drugs that will undergo Medicare price negotiations under the Inflation Reduction Act (IRA) starting from 2026, with the impact expected to be modest initially but gradually growing as more drugs are added to the list each year. The most affected product in 2026 is predicted to be Eliquis, a blood thinner drug from Bristol Myers Squibb and Pfizer. Moody’s analysts explained that the net sales of Eliquis, Bristol Myers Squibb, and Pfizer would be impacted due to price reductions, accounting for 9% and 8% of their respective revenues. Other companies that may experience significant revenue exposure from these price negotiations include Amgen (15%) and Johnson & Johnson (13%). Several drug companies have lodged lawsuits against the government, arguing that Medicare price negotiations infringe on their constitutional rights. The pricing will be negotiated by September 2024.

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