What This News Might Mean for Amgen
Congress' recent move to limit prescription drug prices has the pharmaceutical industry in an uproar. Questions about the long-term impact of the Inflation Reduction Act -- whether the law will truly make medicine more affordable for the patients who need it most or squash innovation as pharmaceuticals claim -- are up for debate.
However, it will unquestionably affect those companies with top-selling Medicare drugs. Since major biotechnology player Amgen (NASDAQ: AMGN) makes this cut, should we revalue the company in light of the new regulations? Let's take a look.
Bone density drug Prolia is used to treat osteoporosis in women after menopause to reduce the risk of bone fracture. Prolia is Amgen's second top- selling drug, bringing in $3.3 billion in sales during 2021. This treatment is also Amgen's only drug to make Medicare's top 10 drugs by sales, coming in near the top of the Part B list with $1.6 billion in 2020 government sales.
Source Fool.com
