Injectable versions of some widely used cancer drugs may be excluded from the new Medicare price negotiations until the 2030s, Reuters reported July 28.
Johnson & Johnson's multiple myeloma treatment Darzalex and Merck's Keytruda want their drugs to be treated like new medications due to a new ingredient that helps the body absorb more of the drug. And regardless of whether the government agrees, the drugs are likely to see a significant delay in eligibility for price negotiations.
The Inflation Reduction Act allows Medicare to negotiate prices on its most costly drugs, starting at a minimum discount of 25 percent of the drug's price. It aims to save billions by 2031, but many drug companies are filing lawsuits in an attempt to stop the negotiations. Merck filed suit June 6, alleging the law violates the First and Fifth amendments.
Ten drugs have been selected for the first wave of negotiations and the program could save healthcare billions and cancer patients $7,590 a year. Negotiations for drugs typically given in hospitals, which these injectable cancer treatments classify as, would begin in 2028.
When guidelines for negotiations were issued earlier this year, they closed loopholes that would allow drugmakers to game the system such as making small changes to their drugs. Injectable cancer treatments that include hyaluronidase would not fall in that category, Evercore ISI biotech analyst Michael DiFiore told Reuters.
However, Johnson & Johnson CFO Joseph Wolk told the news outlet he does not expect the subcutaneous version of Darzalex to be eligible for negotiations until 2033 or 2034.