https://www.wsj.com/articles/the-high-cost-of-price-controls-on-eliquis-and-other-drugs-ira-biden-71b45751?mod=opinion_lead_pos6
For years when I visited my father in Italy, he would ask me about a drug that my company,Bristol Myers Squibb, was developing. It was an anticlotting medication, and my father’s interest was personal, even though he was a physician.
He was at risk of a stroke because he had atrial fibrillation, a kind of irregular heartbeat. To contain that risk, he took warfarin to prevent the blood clots that lead to stroke.
Warfarin, which was developed more than a half-century ago, isn’t a perfect medicine. Too little, and it won’t work. Too much, and the risk of bleeding complications becomes untenable. Weekly blood work and frequent physician monitoring are required.
For decades, researchers sought a better solution. Then, 1995 brought a breakthrough. Researchers at BMS developed a new type of blood thinner, which targets a protein involved in blood clotting called Factor Xa. The new approach didn’t require warfarin’s monitoring and dose adjustments.
Early on, my father quizzed me about the clinical trials for our compound, later named Eliquis. After the FDA approved the medicine in 2012, he asked when it would be available in Italy, where—because of strict price controls—it wasn’t reimbursed as quickly as in the U.S. It became available for reimbursement in Italy for atrial fibrillation in late 2013. Over the past 11 years, Eliquis has benefited an estimated 40 million patients worldwide.
Eliquis is now in the news again. It is among the first 10 medicines subject to “negotiations” under the Inflation Reduction Act to determine what Medicare will pay for it.
Contrary to how it has been framed, the Inflation Reduction Act’s drug-pricing program doesn’t involve negotiation in any ordinary sense of the word. If drug developers disagree with the dictated price, our only options are to pay impossibly high penalties or withdraw our medicines from Medicare and Medicaid.