Tax Penalty, Patient Market Weigh on Pharma’s Price-Cut Decision

As the deadline to enter Medicare’s price negotiation program inches closer, drugmakers are scrambling to gather product-specific data that will help determine their drug’s maximum fair price.

It’s a pivotal week for the Biden administration’s plan. Drugmakers with one of the first 10 drugs selected by the Centers for Medicare & Medicaid Services for price negotiations have to decide by Oct. 1 if they are going to enter agreements. If they do, they have to send data about their products to the government by Oct. 2.

It’s possible, but unlikely, all selected drugmakers will publicly announce their decision before the ...