The Centers for Medicare and Medicaid Services have wasted no time in announcing the first 10 drugs that will be subject to these new price negotiations. Among the medications on the list are Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp.
These drugs are produced by well-known pharmaceutical companies such as Bristol Myers Squibb, Eli Lilly, Johnson & Johnson, Merck, AstraZeneca, Novartis, Amgen, AbbVie, and Novo Nordisk.
Following the news of these price negotiations, the stock prices of these drugmakers remained relatively stable. Bristol Myers saw a modest increase of 0.5%, while Eli Lilly experienced a 0.2% gain. Johnson & Johnson and Merck both had slight declines of 0.2% and no change respectively. AstraZeneca's American depositary receipts dropped by 0.5%, while Novartis' fell by 0.1%. Amgen and Novo Nordisk had marginal decreases of 0.1% and no change respectively.
The selected drugs subject to negotiation have been widely used by approximately 8.2 million individuals with Medicare Part D coverage between June 2022 and May 2023. These medications were utilized to treat a range of conditions and resulted in a total expenditure of $50.5 billion in Part D gross covered prescription drug costs.
It comes as no surprise that some drug manufacturers are already expressing their concerns about this development. Bristol Myers, the maker of Eliquis, has voiced its opposition, stating that Medicare patients currently benefit from affordable out-of-pocket costs, averaging around $55 per month. The company fears that this could change in the future, should insurance companies not be mandated to provide these selected medicines without added financial burdens or accessibility obstacles.
As this story continues to evolve, stay tuned for more updates and analysis on this topic.