White House Quadruples Down on Drug Price Negotiations, Wiping Billions From Pharma Stocks
The Biden administration announced a massive expansion of the Medicare drug price negotiation program from 10 to 50 drugs, sparking a sell-off in pharma stocks and a legal threat from the industry.
The Biden administration is dramatically accelerating its plan to negotiate Medicare drug prices, a move that sent pharmaceutical stocks reeling Monday and sets the stage for a major legal battle with the industry.
The White House announced it will expand the list of drugs subject to negotiation from 10 to 50, a fivefold increase from the initial slate set by the Inflation Reduction Act (IRA). The move, enacted via executive action on December 22, 2025, aims to lower healthcare costs faster than originally planned. The new list will be finalized by September 1, 2026, with lower prices taking effect in 2028.
Officials estimate the accelerated timeline will save the U.S. government an additional $100 billion over the next decade. For millions of seniors, it's expected to translate into significantly lower out-of-pocket costs for high-priced medications treating chronic conditions like cancer, heart disease, and autoimmune disorders.
Industry Vows Legal War, Citing “Stifled Innovation”
The pharmaceutical industry's reaction was swift and furious. The Pharmaceutical Research and Manufacturers of America (PhRMA), the sector's most powerful lobby group, condemned the decision as a massive overreach.
"This is an unprecedented government overreach that will stifle innovation and harm patients by limiting access to future cures," PhRMA CEO Stephen J. Ubl said in a statement. The group announced it will pursue legal action to block the expansion.
The industry's core argument is that forced price cuts will slash the R&D budgets necessary to develop the next generation of life-saving drugs.
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