First Round Of Drugs Up For Medicare Negotiation Gets Soft Landing

By Mandy Jackson

Despite concerns within the biopharmaceutical industry that the drug pricing provisions in the Inflation Reduction Act (IRA) might hinder innovation, the stock market's response to the release of the Centers for Medicare and Medicaid Services (CMS) list of the first 10 drugs eligible for Medicare negotiations under the IRA was rather muted.

Biotechnology stock indices closed higher on August 29, and most major pharmaceutical companies facing Medicare negotiations for the first time in 2026 also saw modest gains. Investors appeared largely unfazed as the list closely aligned with expectations, featuring drugs like Eliquis (apixaban) from Bristol Myers Squibb Company, Xarelto (rivaroxaban) from Johnson & Johnson, Imbruvica (ibrutinib) from AbbVie Inc./J&J for blood cancer, and Jardiance (empagliflozin) from Boehringer Ingelheim GmbH/Eli Lilly and Company for diabetes treatment.

Furthermore, it's worth noting that all the products listed were already on a path towards reduced revenue by January 1, 2026, owing to generic or biosimilar competition anticipated before or within one to three years of that date. Many of these drugs were already subject to substantial rebates under Medicare Part D plans.

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