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.