Novo Nordisk and AstraZeneca among hardest hit by Inflation Reduction Act, report says

Drug pricing policy changes in the USA were signed into law as part of the Inflation Reduction Act last month in one of the most impactful acts of the Biden administration so far.

The three key impacts on drug firm revenue from the bill have been explored by Morningstar’s equity research report, titled US Branded Drug Market and the Inflation Reduction Act.

These effects are listed by the report as shifting Medicare Part D cost-sharing away from the government and toward payers, penalizing biopharma firms that raise Medicare prices by more than the rate of inflation annually and enacting mandatory price cuts on Medicare drugs that have extended patent protection.