- Bloomberg reports that some drug firms have axed plans to increase pricing for certain products or have rolled back hikes in response to a new law in California aimed at pricing transparency. The law, requiring drug makers to give advance notice of significant price increases, is designed to pressure companies to keep prices down. It appears to be working.
- In the past several weeks, Novartis (NYSE:NVS), Gilead Sciences (NASDAQ:GILD), Roche (OTCQX:RHHBY) and Novo Nordisk (NYSE:NVO) have notified California health plans rolling back or reducing price hikes on at least 10 drugs.
- Pharma companies are far from accepting the new reality, however. Its lobbying group, Pharmaceutical Research and Manufacturers of America, is challenging the law in court.
- Selected tickers: XLV, IBB, IHE, XPH, PPH, VHT, PFE, AMGN, BIIB, VRTX, AGN, ABBV, LLY, GSK, AZN, JNJ, MRK, SHPG, VRX, TEVA
- Now read: Trump Protection For Pfizer
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