The Senate Finance Committee’s bill on drug pricing was co-authored and introduced by Chuck Grassley and Ron Wyden. The authors discuss limiting drug price increases under Medicare to the inflation rate. According to investor Ronny Gal and his team of analysts at Bernstein, the bill doesn’t block pharmaceutical companies from setting prices when products launch. In addition, the bill could bring closure to ongoing drug-pricing issues, which has been and area of continued interest and concern for many pharmaceutical companies.
The analysts remark, “Without some finality, it is only a matter of time until such legislation is introduced,” they wrote. “Our estimates based on the last round of proposal suggest a manageable impact on the pharmaceutical industry. However, worse scenarios will likely emerge as part of the debate.” Click here to learn more.
Source: Eric Sagonowsky, Fierce Pharma, 1/25/21