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Medicare 2027 Negotiating Class: Austedo, Linzess, Xifaxan May Face Generic, OTC Price Comparators

 
• By Cathy Kelly

Manufacturers will address what constitutes appropriate therapeutic alternatives for the selected drugs as part of the negotiation process.

Will generic or OTC alternatives lower the bar for Medicare negotiated prices? (Shutterstock)
Key Takeaways
  • The upcoming Medicare price negotiation for Austedo could include questions about whether the drug is worth more than a related generic, while consideration of maximum fair prices for Linzess and Xifaxan may include comparisons to OTCs.
  • The list of selected drugs includes five products covered by the Part D protected class policy that give Medicare more opportunity for savings compared to highly rebated products.
  • But several drugs chosen for negotiation are expected to face generic competition before negotiated prices are implemented or shortly thereafter, which will blunt the impact of the process.

Teva may grapple with questions about how its Austedo (deutetrabenzene) is worth the price premium over generic tetrabenzene while negotiating a “maximum fair price” with...

Some indications for AbbVie’s Linzess and Bausch/Salix Pharmaceuticals Xifaxan, which are approved for irritable bowel...

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