# Bristol Myers, Pfizer, AbbVie drugs likely to face U.S. price negotiation
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-13
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Top U.S. Drug Price Negotiation Targets for 2026
Meta Description: Discover the top 10 medicines likely to be subject to U.S. price negotiations in 2026, including Eliquis, Ibrance, and Imbruvica. Get insights now!
URL: https://financedigest.com/bristol-myers-pfizer-abbvie-drugs-likely-to-face-u-s-price-negotiationhtml

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By Michael Erman, Patrick Wingrove and Ahmed Aboulenein

NEW YORK/WASHINGTON (Reuters) – The blood thinner Eliquis from Bristol Myers Squibb, Pfizer’s breast cancer drug Ibrance and AbbVie’s leukemia treatment Imbruvica are likely to be among 10 big-selling medicines subject to U.S. price negotiations for 2026, according to five [Wall Street](https://www.financedigest.com/weary-wall-street-cheers-improved-consumer-confidence.html "Weary Wall Street cheers improved consumer confidence") and academic analyses shared with Reuters.

Last [year Congress passed the Inflation](https://www.financedigest.com/spains-inflation-to-be-lower-this-year-than-in-2022-minister.html "Spain’s inflation to be lower this year than in 2022 -minister") Reduction Act (IRA), giving the U.S. government [power to start the first price negotiations over prescription drugs for its Medicare health program covering](https://www.financedigest.com/app-based-insurance-cover-for-millennials-possessions-and-experiences-back-me-up-powered-by-ageas.html "APP-BASED INSURANCE COVER FOR MILLENNIALS’ POSSESSIONS AND EXPERIENCES: ‘BACK ME UP’, POWERED BY AGEAS") more than 60 million Americans, most over age 65.

The [government will launch](https://www.financedigest.com/gecko-governance-launches-compliance-solution-for-ico-market-following-approval-by-isle-of-man-regulator.html "GECKO Governance Launches Compliance Solution For ICO Market Following Approval by Isle of Man Regulator") the negotiation process in September by naming the first drugs it plans to target. They are expected to be the 10 pharmacy-based prescription drugs it spends the most on for the [year ended](https://www.financedigest.com/equity-markets-show-strong-end-of-year-performance-in-camradatas-q4-2017-investment-research-reports.html "Equity Markets Show Strong End of Year Performance in CAMRADATA’s Q4 2017 Investment Research Reports") May 2023.

For months, lobbyists for the [biggest pharmaceutical companies](https://www.financedigest.com/disconnected-customers-are-one-of-the-biggest-problems-facing-financial-companies.html "Disconnected customers are one of the biggest problems facing financial companies") have been meeting with Medicare officials trying to game out which drugs the government will choose, what discounts they will seek, and ways to redress the final price.

Five lobbyists told Reuters they have been given little information beyond what has been publicly disclosed.

The U.S. Centers for Medicare and Medicaid Services (CMS), which will run the negotiation process, said in a [statement it expects to answer some of the industry’s questions in a guidance document it will circulate this spring](https://www.financedigest.com/spring-statement-should-businesses-be-preparing-for-interest-rate-rises.html "Spring Statement: Should businesses be preparing for interest rate rises?"). A spokesperson said the [agency intends to use feedback from monthly calls with drugmakers to inform](https://www.financedigest.com/leading-credit-reference-agencies-launch-industry-wide-information-notice-to-support-lenders-and-consumers-in-gdpr-world.html "Leading credit reference agencies launch industry-wide information notice to support lenders and consumers in GDPR world") implementation.

For individual companies, the [financial impact](https://www.financedigest.com/how-mifid-ii-will-impact-financial-advisor-communications.html "HOW MIFID II WILL IMPACT FINANCIAL ADVISOR COMMUNICATIONS") is expected to vary. The nonpartisan Congressional Budget Office estimates that negotiations will save the government around $4.8 billion in 2026 and [nearly $25 billion a year](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") by 2031, as more drugs are added to the negotiation process.

Those savings will help fund the bill’s out of pocket [spending caps and reduced cost sharing](https://www.financedigest.com/cisco-forecast-raise-allays-tech-spending-fears-lifts-shares.html "Cisco forecast raise allays tech spending fears, lifts shares") for older Americans.

We couldn’t have the other parts of the IRA without this Medicare negotiation,” said Sean Dickson, director of the West Health Policy Center, a non-partisan healthcare [think tank](https://www.financedigest.com/new-uk-pm-must-be-radical-to-stop-power-bill-catastrophe-think-tank.html "New UK PM must be radical to stop power bill catastrophe – think tank").

Reuters compiled five lists prepared by [Wall Street](https://www.financedigest.com/asian-stocks-edge-up-before-u-s-jobs-data-defying-wall-street-selloff.html "Asian stocks edge up before U.S. jobs data, defying Wall Street selloff") analysts and academics with a total of 27 drugs across them.

Eliquis, which Bristol Myers shares with Pfizer, Ibrance, and Imbruvica, sold by AbbVie and Johnson & Johnson, appear on every list.

[Novo Nordisk’s](https://www.financedigest.com/novo-nordisk-in-talks-buy-controlling-stake-in-biocorp.html "Novo Nordisk in talks buy controlling stake in Biocorp") diabetes drug Ozempic, prostate cancer treatment Xtandi from Astellas Pharma and Pfizer, and J&J’s blood thinner Xarelto are on three of the lists.

The lists differ because each analyst has their own projections for drug sales, and it is not certain if the government will consider gross [sales or net sales after market](https://www.financedigest.com/sales-of-electric-bicycle-motors-market-to-record-exponential-growth-during-2017-2025.html "Sales of Electric Bicycle Motors Market to Record Exponential Growth During 2017 – 2025") discounts.

MAKING THE CASE

Bristol Myers [Chief Commercialization Officer](https://www.financedigest.com/iris-software-group-names-matt-tuson-as-chief-revenue-officer.html "IRIS Software Group names Matt Tuson as Chief Revenue Officer") Chris Boerner said in an interview last month that Eliquis may well be in the government’s crosshairs. We would anticipate that you could potentially see [price setting by the government](https://www.financedigest.com/carrefour-unveils-30-euro-shopping-basket-in-spain-after-government-price-cut-proposal.html "Carrefour unveils 30 euro shopping basket in Spain after government price cut proposal") with Eliquis,” he said.

Astellas said it was analyzing information from CMS to [understand its potential impact](https://www.financedigest.com/the-impact-of-economic-indicators-on-financial-markets-understanding-the-key-drivers.html "The Impact of Economic Indicators on Financial Markets: Understanding the Key Drivers"). Pfizer, Novo Nordisk and J&J declined to comment on the likelihood their drugs would be included in the first round of negotiations. AbbVie did not respond to request for comment.

Medicare is the biggest single purchaser of drugs in the country, reimbursing private companies and [hospitals for medications](https://www.financedigest.com/the-icu-is-full-medical-staff-on-frontline-of-chinas-covid-fight-say-hospitals-are-overwhelmed.html "‘The ICU is full’: medical staff on frontline of China’s COVID fight say hospitals are ‘overwhelmed’") used by individuals covered by the program.

Under the new law’s process, the government will publish its list of the first 10 drugs for [negotiation](https://www.financedigest.com/germanys-lanxess-calls-on-government-to-help-chemicals-industry.html "Germany’s Lanxess calls on government to help chemicals industry") from the pharmacy-based prescription drug program called Part D on Sept. 1.

Drugmakers will have to submit [data making the case for each treatment’s](https://www.financedigest.com/crowdsourcing-of-data-to-drive-the-renal-anemia-treatment-market.html "Crowdsourcing of data to drive the Renal Anemia Treatment Market") value by Oct. 2, including whether the drug represents a therapeutic [advance and if it serves unmet medical](https://www.financedigest.com/advancements-in-x-ray-equipment-to-drive-the-medical-imaging-equipment-market.html "Advancements in X-Ray Equipment to drive the Medical Imaging Equipment Market") needs.

Drugmakers have long presented similar value-based arguments in negotiations with [private buyers and European](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") governments.

Three industry lobbyists told Reuters they are pressing Medicare officials to commit to a process under which it will reveal how the government arrived at a final price, and have asked for a framework for [resolving disputes](https://www.financedigest.com/russias-sberbank-urges-glencore-to-resolve-dispute-over-oil-bill.html "Russia’s Sberbank urges Glencore to resolve dispute over oil bill").

Without such a process, drugmakers could resort to lawsuits as a last-ditch attempt to [stop government price](https://www.financedigest.com/mr-kipling-maker-premier-foods-to-stop-price-hikes-this-year.html "Mr Kipling maker Premier Foods to stop price hikes this year") setting – even though the IRA exempts the process from lawsuits, two of those lobbyists said.

One of those lobbyists suggested adoption of an appeal process similar to ones used by [European countries](https://www.financedigest.com/four-european-countries-call-for-special-treatment-of-defence-in-eu-debt-rules-document.html "Four European countries call for special treatment of defence in EU debt rules – document"), where price-setting regimes have long existed, would give companies recourse outside of lawsuits.

A Medicare spokesperson declined to [say if the agency was considering](https://www.financedigest.com/sega-sammy-says-it-is-considering-buying-angry-birds-maker-rovio.html "Sega Sammy says it is considering buying Angry Birds maker Rovio") such a move.

Steven Pearson, president of the Institute for Clinical and Economic Review (ICER), an influential research group that does drug pricing value assessments, said how the government [comes to a price based on data](https://www.financedigest.com/real-time-connect-nyc-where-adtech-leaders-come-together-to-redefine-data-strategies.html "Real-Time Connect (NYC): Where AdTech leaders come together to redefine data strategies") companies submit should be clearly communicated.

It’s going to be frustrating to a lot of people,” he said, “if, at the [end of the day](https://www.financedigest.com/amazon-to-lay-off-staff-in-u-s-canada-and-costa-rica-by-end-of-day.html "Amazon to lay off staff in U.S., Canada and Costa Rica by end of day"), we don’t really understand how this information is being interpreted and applied to a final decision.

(Reporting by Michael Erman and Patrick Wingrove in New York and Ahmed Aboulenein in Washington; Editing by Caroline Humer and Bill Berkrot)


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