Replies to post #252894 on Biotech Values

[DewDiligence]

The IRA hit_to_2026_drug_prices_was_relatively_mild,_but_that_could_change_in_2027_and_beyond:

https://www.wsj.com/health/pharma/the-feds-are-playing-nice-with-pharma-at-least-for-now-6df6227b

The short-term overhang might be gone [#msg-174928956], but the long-term risk for pharma is still very much present. The government has now given itself the power to reduce the prices of blockbuster drugs and there is no telling whether it will always play nice. Future administrations could use those powers to demand much steeper price cuts.

Next year, the Centers for Medicare and Medicaid Services will release its target list for price reductions in 2027. And the system, as currently designed, “leaves the door open to a much more heavy-handed approach,” wrote Christopher Raymond, an analyst at Piper Sandler.

…Huge blockbusters like Novo Nordisk’s Ozempic for diabetes and Merck’s Keytruda for cancer will eventually land on the list as well.