Bristol Myers Squibb has been a vocal opponent of drug price negotiations under the US’ Inflation Reduction Act (IRA) and has challenged the plans since its blood thinner made the first list of drugs to be negotiated.
However, during the company’s quarterly conference call last week, CEO Chris Boerner expressed confidence in the company’s ability to manage the impact of the IRA. “Now that we’ve seen the final price, we’re increasingly confident in our ability to navigate the impact of IRA,” he said. While the prices have yet to be made public, the company boss seemed somewhat reassured by what he had seen.
Executives at Novartis, Johnson & Johnson and AstraZeneca have all expressed similar cautious optimism about the IRA price controls on their drugs, suggesting that they are all seeing controls that are more favourable than once feared. These companies were also involved in legal battles against the planned price controls, fearing the impact on their ability to innovate and provide access to drugs in the US.
This is a view still held by the BMS boss, who remains concerned about the long-term impact of the IRA on innovation. Boerner stated: “We continue to believe that arbitrary price-setting by the government on life-saving medicines is not good public policy.” The new government-negotiated prices will start in 2026, with final prices expected to be announced before 1 September 2024. On the call, Boerner indicated that BMS would provide more detail on its position then.
The company also reported strong second-quarter results, with sales of $12.2bn, up 9% year-on-year, and raised its full-year sales and earnings guidance. Many of the company’s key products showed significant sales growth, but its psoriasis drug underperformed due to access issues.
