Replies to post #247603 on Biotech Values

[DewDiligence]

Re: IRA lawsuits

…companies that are more vulnerable to this legislation don’t seem to be trading at much if any discount to those that are more protected so either investors are confident pharma will effectively fight this or are not worried about a timeline beyond 4-5 years when this kicks into high gear (affecting more drugs including part B)…

Is it really possible to extract the valuation discount attributable to the IRA with any confidence when there are so many other moving parts in the valuations of various drug/biotech companies? I’d be interested in seeing your numbers on this, even if the analysis is cursory. TIA

[jbog]

My only observation is that companies that are more vulnerable to this legislation don’t seem to be trading at much if any discount to those that are more protected

Without a doubt the price will just increase for everyone else.

[DewDiligence]

Re: IRA drug-price “negotiations”

JNJ said on today’s 2Q24 CC that there were no unpleasant surprises on the IRA price negotiations for Stelara and Xarelto, two of the 10 drugs subject to 2026 price negotiation.

BMY, part-owner (with PFE) of Eliquis—the largest-selling drug subject to 2026 IRA price negotiation—is +5% today.