Merck (NYSE:MRK) said it expects its top-selling drug, Keytruda, to be selected by the U.S. government for price setting negotiations next year under the Inflation Reduction Act.
In a filing with the SEC, Merck (NYSE:MRK) noted that the U.S. Department of Health and Human Services, which oversees programs such as Medicare, selected one of its best-selling drugs, Januvia, to be in the first round of IRA price negotiations, with the set prices to take effect in January 2026.
Merck added that its drugs Janumet and Janumet XR were selected for the second round of negotiations, with those prices slated to take effect in January 2027.
"The company expects that in 2026, HHS will include Keytruda in a subsequent selection of products to undergo IRA price setting, with such price to become effective on January 1, 2028, and the company expects that, as a result, U.S. sales of Keytruda will decline after that time," Merck said in the filing.
Merck reported total sales of $64.2B for 2024, with Keytruda contributing $29.5B.
Key patents for Keytruda are also reportedly set to expire in 2028. The company has been developing a more easily administered version of the product to help extend its profitability.
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