US Expands Medicare Drug Price Negotiation Scope
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 20h ago
0mins
Source: Benzinga
- Expanded Negotiation Scope: The CMS has included Medicare Part B drugs in its price negotiation program for the first time, marking a significant expansion that is expected to increase pressure on high-cost drug pricing.
- Significant Savings Potential: CMS estimates that if the negotiated prices from the second cycle had been in effect in 2024, Medicare could have saved approximately $8.5 billion in net drug costs, translating to a 36% reduction in spending across selected drugs, thereby alleviating financial burdens on seniors and taxpayers.
- Transparency in Drug Selection: CMS released a list of 50 eligible drugs for negotiation, with 15 selected based on high spending, demonstrating the agency's commitment to transparency and fairness in drug pricing, which aims to enhance public trust.
- Future Negotiation Timeline: Negotiations with participating drug manufacturers are scheduled for 2026, with any agreed prices set to take effect on January 1, 2028, providing manufacturers ample preparation time while also bringing anticipated price adjustments for Medicare beneficiaries.
Analyst Views on ABBV
Wall Street analysts forecast ABBV stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ABBV is 253.26 USD with a low forecast of 218.00 USD and a high forecast of 289.00 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.
22 Analyst Rating
15 Buy
7 Hold
0 Sell
Moderate Buy
Current: 223.930
Low
218.00
Averages
253.26
High
289.00
Current: 223.930
Low
218.00
Averages
253.26
High
289.00
About ABBV
AbbVie Inc. is a global, diversified research-based biopharmaceutical company. It is engaged in research and development, manufacturing, commercialization and sale of medicines and therapies. Its product portfolio includes Immunology, Oncology, Aesthetics, Neuroscience, Eye Care and Other Key Products. Immunology products include rheumatology, dermatology and gastroenterology. Oncology products include Imbruvica, Venclexta/Venclyxto, Elahere and Epkinly. Aesthetics portfolio consists of facial injectables, plastics and regenerative medicine, body contouring, and skincare products. Its Neuroscience products include Botox Therapeutic, Vraylar, Duopa and Duodopa, Ubrelvy, and Qulipta. Eye Care products include Ozurdex, Lumigan/Ganfort, Alphagan/Combigan, Restasis, and other eye care. Other key products include Mavyret/Maviret, Creon, and Linzess/Constella. Its investigational candidate, bretisilocin, is for the treatment of patients with moderate-to-severe major depressive disorder (MDD).
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.
