Posted by Michael Wonder on 10 Sep 2019
For drug companies, there are real costs to unpopularity
10 September 2019 - A familiar headache for drug investors is likely to soon reappear.
A draft plan to lower prescription-drug prices from House Speaker Nancy Pelosi was circulated around Washington on Monday. The contents of the draft, though preliminary, should get Wall Street’s attention.
Among other proposals, the document seen by The Wall Street Journal calls for direct negotiations between the Department of Health and Human Services and manufacturers for the top 250 drugs sold in Medicare. “If a drug manufacturer refuses to participate in any part of the negotiation process or does not reach agreement with HHS, they will be assessed a Non-Compliance Fee equal to 75% of the gross sales of the drug in question from the previous year,” it states.
