Drug prices with Medicare

The first round of Medicare drug price negotiations has concluded, with final prices for 10 drugs set to be disclosed in September and effective from 2026. Pharmaceutical companies, while acknowledging the long-term threat posed by these negotiations to innovation and profits, have expressed increased confidence in managing the immediate impacts, as noted by Bristol Myers Squibb and AbbVie executives. In India, the pharmaceutical industry is advocating for a more predictable drug pricing policy, urging the government to avoid drastic price changes under the Drug Pricing Control Order (DPCO). Industry representatives suggest incentivizing domestic active pharmaceutical ingredient (API) production to reduce reliance on cheaper Chinese imports and streamline pricing approval processes. The Organisation of Pharmaceutical Producers of India (OPPI) has specifically requested that the government refrain from using Paragraph 19 of DPCO, which allows significant price reductions in public interest. These discussions reflect a broader concern for balancing affordability with the need for innovation in drug development.