U.S. Medicare Considers Price Negotiation for Key Pharmaceuticals, Including Vraylar
The Biden administration's decision could impact the pricing of major drugs, including the antipsychotic Vraylar, under the Inflation Reduction Act.
The Biden administration has listed a group of fifteen prescription drugs for potential price renegotiation under the U.S. Medicare program.
This development follows the guidelines set by the Inflation Reduction Act, passed in 2022, which aims to reduce prescription drug costs under the federal health insurance plan.
Among the drugs identified is Vraylar, an antipsychotic developed by Hungarian pharmaceutical company Richter Gedeon and marketed in the United States by AbbVie.
The list also includes other significant medications such as Ozempic and Wegovy from Novo Nordisk, asthma treatments from GSK, and several cancer therapies from Pfizer.
The decision is part of a broader effort by the U.S. government to lower drug costs for consumers on Medicare, a program providing health coverage to individuals aged 65 and older in the United States.
Richter Gedeon CEO, Orbán Gábor, highlighted the importance of ongoing research and preclinical discovery programs in collaboration with AbbVie, reaffirming the company's commitment to scientific endeavors.
According to industry estimates, the anticipated price cuts could potentially reduce Vraylar's revenue by approximately $1.5 billion over its lifecycle, potentially impacting Richter Gedeon's earnings by around $300 million, or about 120 billion Hungarian forints.
Despite these prospective changes, the revisions are not expected to affect the company's results for the current year.
The price changes for these medications are slated to take effect in 2027, with the law mandating at least a 25% price reduction.
Analysts suggest that the U.S. government may seek even larger discounts.
This move aligns with previous U.S. government actions aiming to lower drug costs on supported medications.
The inclusion of Vraylar in the list adds to the ongoing conversation about sustainable pricing models in the pharmaceutical industry.
Industry experts emphasize the significance of this development within the pharmaceutical sector and the potential ramifications on global pharmaceutical markets, as nations grapple with rising healthcare costs and the need for affordable medications.
This development follows the guidelines set by the Inflation Reduction Act, passed in 2022, which aims to reduce prescription drug costs under the federal health insurance plan.
Among the drugs identified is Vraylar, an antipsychotic developed by Hungarian pharmaceutical company Richter Gedeon and marketed in the United States by AbbVie.
The list also includes other significant medications such as Ozempic and Wegovy from Novo Nordisk, asthma treatments from GSK, and several cancer therapies from Pfizer.
The decision is part of a broader effort by the U.S. government to lower drug costs for consumers on Medicare, a program providing health coverage to individuals aged 65 and older in the United States.
Richter Gedeon CEO, Orbán Gábor, highlighted the importance of ongoing research and preclinical discovery programs in collaboration with AbbVie, reaffirming the company's commitment to scientific endeavors.
According to industry estimates, the anticipated price cuts could potentially reduce Vraylar's revenue by approximately $1.5 billion over its lifecycle, potentially impacting Richter Gedeon's earnings by around $300 million, or about 120 billion Hungarian forints.
Despite these prospective changes, the revisions are not expected to affect the company's results for the current year.
The price changes for these medications are slated to take effect in 2027, with the law mandating at least a 25% price reduction.
Analysts suggest that the U.S. government may seek even larger discounts.
This move aligns with previous U.S. government actions aiming to lower drug costs on supported medications.
The inclusion of Vraylar in the list adds to the ongoing conversation about sustainable pricing models in the pharmaceutical industry.
Industry experts emphasize the significance of this development within the pharmaceutical sector and the potential ramifications on global pharmaceutical markets, as nations grapple with rising healthcare costs and the need for affordable medications.
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