Bristol Myers Squibb warns US price reforms will dent drug development
Bristol Myers Squibb says it expects to cancel some drug development programmes due to US government drug pricing rules that are due to be phased in from next year.
Giovanni Caforio, chief executive of the US drugmaker, told the Financial Times it was reviewing its portfolio and expected that some drug candidates would not be funded as a result of reforms in the administration’s Inflation Reduction Act.
He said cancer treatments would be hardest hit by some measures, which include giving the federal government for the first time the power to negotiate prices for some of the most expensive drugs purchased by Medicare, the taxpayer-funded healthcare scheme for retirees.
Patients groups said pharma industry claims that pricing reform would kill innovation was “fear mongering”, noting Americans pay much more for branded drugs than people in other countries.
This story originally appeared on: Financial Times - Author:Jamie Smyth
