ServiceNow nears deal to acquire Veza for at least $1 bln - The Information
Investing.com - Bernstein has assessed the impact of the Inflation Reduction Act (IRA) pricing on pharmaceutical companies, finding limited effects for several major drugs facing patent expirations. This news comes as the pharmaceutical sector, including undervalued players like Bristol Myers Squibb (NYSE:BMY), navigates regulatory changes while maintaining strong financial health scores.
Bernstein analyst Courtney Breen noted that five of the 15 drugs included in the IRA pricing review face patent cliffs in or before 2027, meaning they are "unlikely to experience even a full year of price reduction before erosion kicks-in."
For U.S. firms covered by Bernstein, the analysis estimates potential annual impacts of $250 million for Vraylar from NYSE:ABBV, $150 million for Otezla from NASDAQ:AMGN, and approximately $100-200 million for Linzess from NYSE:ABBV.
Breen acknowledged challenges in the analysis, stating it’s "tough to reconcile the Gross part D data with the US revenue & over 65 script share."
The IRA, which allows Medicare to negotiate prices for certain prescription drugs, appears to have a more modest financial impact on these pharmaceutical companies than some market observers initially anticipated.
In other recent news, Bristol-Myers Squibb announced that the European Commission has approved Breyanzi for treating adult patients with relapsed or refractory mantle cell lymphoma after at least two lines of systemic therapy, including a Bruton’s tyrosine kinase inhibitor. This approval is based on results from the TRANSCEND NHL 001 trial, which showed an 82.7% overall response rate and a 71.6% complete response rate. Meanwhile, Guggenheim maintained its Neutral rating for Bristol-Myers Squibb, following Bayer’s successful Phase 3 trial for a stroke treatment, which shares a similar approach to Bristol-Myers Squibb’s. Cantor Fitzgerald also reiterated its Neutral rating and $45.00 price target, citing positive developments in the company’s milvexian program, which demonstrated potential in reducing thrombosis while preserving hemostasis. Additionally, BMO Capital reaffirmed its Market Perform rating and $47.00 price target after Bristol-Myers Squibb’s analyst event in New York City, which provided insights into the company’s clinical opportunities and business strategy. These developments reflect ongoing confidence in Bristol-Myers Squibb’s strategic initiatives and product pipeline.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.