Drug pricing policy headwinds (Part D, IRA, CMS negotiation, 340B, PBM)
10 statements on the record across 6 companies, ordered by how much each has said. Every quote is verbatim from its call.
Across the group, companies converge on criticism of pharmacy middlemen capturing outsized shares of drug spending, with MRK citing over 50 cents of every dollar going to PBMs [m2205] and BMY citing 65 cents of every dollar flowing to entities that do not discover, develop or deliver medicines [m2302], alongside 340B concerns from BMY on program abuses [m2303] and GILD calling for more transparency to eliminate duplicate discounts [m2429]. AMGN views CMS negotiation as a poor mechanism misaligned with rewarding innovation [m2385] and said it would watch Part D redesign closely without committing to a specific date [m2384], later assessing by 2025 that Part D redesign was relatively neutral for its portfolio with Repatha benefiting from capped, smoothed out of pocket costs [m2496]. BMY expects Part D redesign and coverage gap elimination to strengthen Eliquis revenue in the second half of the year [m2291], while PFE warned the IRA would push Vyndaqel, Ibrance, Xtandi and Xeljanz into catastrophic coverage much earlier in the year [m2221]. LLY struck a different tone, calling a pricing move with Cigna a good outcome for innovators, patients, and commercial payers [m2272].
Murdo Gordon stated Amgen views CMS negotiation as a poor mechanism that does not resemble true negotiation, misaligned with rewarding innovation. [m2385] Gordon said Amgen would watch Part D redesign closely, monitoring PBM formulary changes and patient impact, without committing to a specific date. [m2384] By 2025, Gordon assessed Part D redesign as relatively neutral for Amgen's total portfolio, with Repatha benefiting from capped, smoothed patient out of pocket costs. [m2496]
Show the 3 verbatim statements
#m2385 · 2024-08-06 · Murdo Gordon · STATED
“we continue to see that this is not a good mechanism to incentivize and reward innovation and it does not resemble one we've commonly described as a negotiation.”
#m2384 · 2024-08-06 · Murdo Gordon · STATED
“we continue to look to help patients and support them with Enbrel in the market and we will watch the Part D redesign closely. We will look to see how PBMs redesign their formularies, and we will look to see how patients are impacted by the new model.”
#m2496 · 2025-02-04 · Murdo Gordon · STATED
“The Part D redesign at a total portfolio level for us is relatively neutral between some [Technical Difficulty] chronic care cardiovascular products at an affordable price like Repatha tend to do well when patients' out of pocket is capped and smooth.”
Boerner flagged 340B program abuses as a major ongoing focus area for BMY. [m2303] Elkins expects total Eliquis revenue to strengthen in the second half of the year, driven by Part D redesign and coverage gap elimination. [m2291] Boerner separately criticized middlemen, noting 65 cents of every US pharmaceutical dollar goes to entities that do not discover, develop or deliver medicines. [m2302]
Show the 3 verbatim statements
#m2303 · 2025-04-24 · Christopher Boerner · STATED
“we continue to be very focused on and concerned about abuses in the 340B program and that's going to be a big focus area of ours as well.”
#m2291 · 2025-04-24 · David Elkins · STATED · by second half of the year
“We continue to expect total Eliquis revenue to be stronger in the second half of the year, primarily due to the Part D redesign and elimination of the coverage gap.”
#m2302 · 2025-04-24 · Christopher Boerner · STATED
“65¢ of every dollar spent on pharmaceutical products in the US goes to middlemen. These are entities that don't discover, develop or deliver medicines to patients.”
Gilead's Johanna Mercier said the company supports the 340B program's original purpose but wants more transparency to eliminate duplicate discounts across therapeutic areas. [m2429]
Show the 1 verbatim statement
#m2429 · 2025-04-24 · Johanna Mercier · STATED
“We believe in the 340B channel, absolutely for what it was designed originally to do. We just want a little bit more transparency because that would really help cut out some of the duplicates that we're currently seeing as well some of our different therapeutic areas.”
Ricks called the pricing move a good outcome for innovators, patients, and commercial payers, and noted it was likely a smart share gaining step by Cigna. [m2272]
Show the 1 verbatim statement
#m2272 · 2025-10-30 · David Ricks · STATED
“I think it's a good move for innovators. It's a good move for patients. It's a good move for payers, for the commercial payers and probably smart of Cigna to make this first move to recoup market share or gain market share.”
Rob Davis said PBM reform would be an important step, noting over 50 cents of every dollar goes to middlemen rather than manufacturers. [m2205]
Show the 1 verbatim statement
#m2205 · 2025-04-24 · Rob Davis · STATED
“PBM reform would be one important step. If you look at the fact that over 50¢ of every dollar goes somewhere in the middle, so the man the discoverers and manufacturers only get less than half of every dollar.”
Denton warned the IRA would push Vyndaqel, Ibrance, Xtandi and Xeljanz into catastrophic coverage much earlier in the year as pricing pressure intensifies. [m2221]
Show the 1 verbatim statement
#m2221 · 2025-02-04 · Dave Denton · STATED
“As the IRA is felt more acutely in higher-priced medicines, we expect Vyndaqel, Ibrance, Xtandi and Xeljanz to reach catastrophic coverage much earlier in the year.”
OPEN is an unresolved commitment on the clock; STATED is on the record without a checkable bar and is never counted or scored. Method: methodology.