New Drug Price Negotiation List for Medicare
Written by Emily J. Thompson, Senior Investment Analyst
Source: seekingalpha
- Drug List Announcement: The Centers for Medicare & Medicaid Services (CMS) has announced a list of 15 drugs, including Pfizer's Xeljanz and Novartis's Cosentyx, for price negotiations under Medicare Part D, potentially affecting 1.8 million patients' medication costs.
- Significant Spending Impact: The usage of these drugs is expected to result in $27 billion in prescription drug spending between 2024 and 2025, highlighting the profound impact of Medicare policies on the pharmaceutical industry.
- Negotiation Timeline: CMS plans to implement the negotiated drug prices in 2028, creating new market challenges and pressures for pharmaceutical companies to adjust their strategies accordingly.
- Industry Reaction: The stock prices of pharmaceutical giants like Pfizer, Eli Lilly, and Novartis may be impacted, particularly in light of changing healthcare policies and drug price negotiations, prompting investors to closely monitor future financial performance and market strategies.
Analyst Views on PFE
Wall Street analysts forecast PFE stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PFE is 28.56 USD with a low forecast of 24.00 USD and a high forecast of 35.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
5 Buy
11 Hold
0 Sell
Moderate Buy
Current: 25.880
Low
24.00
Averages
28.56
High
35.00
Current: 25.880
Low
24.00
Averages
28.56
High
35.00
About PFE
Pfizer Inc. is a research-based, global biopharmaceutical company. The Company is engaged in the discovery, development, manufacture, marketing, sale and distribution of biopharmaceutical products worldwide. Its Biopharma segment includes the Pfizer U.S. Commercial Division, and the Pfizer International Commercial Division. Its product categories include oncology, primary care and specialty care. Its oncology products include Ibrance, Xtandi, Padcev, Adcetris, Inlyta, Lorbrena, Bosulif, Tukysa, Braftovi, Mektovi, Orgovyx, Elrexfio, Tivdak and Talzenna. Its primary care products include Eliquis, Nurtec ODT/Vydura, Zavzpret, the Prevnar family, Comirnaty, Abrysvo, FSME/IMMUN-TicoVac, Nimenrix, Trumenba, and Paxlovid. Its specialty care products include Xeljanz, Enbrel (outside the United States and Canada), Inflectra, Abrilada, Cibinqo, Litfulo, Eucrisa, Velsipity, the Vyndaqel family, Genotropin, BeneFIX, Xyntha, Somavert, Ngenla, Hympavzi, Sulperazon, Zavicefta, Octagam and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
