US Inflation Reduction Act Drug Pricing Legislation May Impact Pharma’s Credit

A recent analysis by Moody’s Investment Service finds that drugmakers’ concerns about the US Democrats’ landmark drug pricing reforms may have some degree of validity. The legislation, which lets Medicare negotiate the price of a small set of drugs, would negatively affect the credit of the pharma industry. It would also cap inflation-attributed price hikes.

According to Fraiser Kansteiner, “It’s not clear exactly which drugs will end up on the bargaining table, though some potential candidates include Bristol Myers Squibb and Pfizer’s Eliquis, Eli Lilly’s diabetes meds Trulicity and Jardiance, AbbVie and Johnson & Johnson’s Imbruvica, plus Gilead Sciences’ HIV therapy Biktarvy.”

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(Source: Fierce Pharma, August 19th, 2022)