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HEALTHCARE: US Pharma

HEALTHCARE

The drug price restrictions announced today cover 10 drugs whose sales in aggregate are $62bn per year. On a simple average, the price will drop by 60%, and result in a $7.5bn saving (6bn medicare, 1.5bn out of pocket) implying $12.5bn sales are affected by this (c. 20% of total sales)

Eliquis makes up 25% of BMY's sales and is seeing a -56% price drop. Clearly not all of this is sold to affected Medicare groups. If we assume 20% of 25.4% then the cost to BMY is 2.8%


DrugCompanyShare of RevenueChange
IMBRUVICAABBV5.3%-38%
ENBRELAMGN10.9%-67%
FARXIGAAZN14.7%-68%
ELIQUISBMY25.4%-56%
XARELTOJNJ2.5%-62%
IMBRUVICAJNJ3.3%-38%
STELARAJNJ11.7%-66%
JARDIANCELLY6.9%-66%
JANUVIAMRK2.4%-79%
ENRESTONOVNVX14.9%-53%
FIASP/NOVOLOGNOVOB0.8%-76%
ELIQUISPFE10.7%-56%

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