Axios: Pharma companies with Massachusetts ties targeted in Medicare drug talks

Aug 30, 2023

The following is an excerpt from Axios Boston originally published online on August 29, 2023:

The Biden administration unveiled Tuesday the first 10 drugs that will undergo Medicare price negotiations in 2023 and 2024, including several from companies with Massachusetts ties.

Driving the news: The companies with drugs on the initial list employ more than 9,000 people in Massachusetts, Kendalle Burlin O’Connell, CEO and president of MassBio, said in a statement to Axios.

  • They include Bristol Myers Squibb Co., Merck & Co. Inc. and Novartis Pharmaceuticals.
  • O’Connell is one of several pharmaceutical industry leaders who oppose the price control negotiations.

Zoom in: The new law has already changed how some Massachusetts biotech companies do business.

  • One investor, Peter Kolchinsky, told the BBJ earlier this year that he advised a company to develop its drugs differently so they could get a better return on investment in case of future price negotiations.

What they’re saying: “The drug price negotiation program, as enacted, will negatively impact drug discovery and innovation and ultimately patients around the world,” O’Connell said.

Read the full story online via Axios.

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