J&J, Merck, Regeneron most exposed to Medicare drug price negotiation - Bloomberg
Dave Kotinsky

Johnson & Johnson (NYSE:JNJ), Merck (NYSE:MRK), and Regeneron (NASDAQ:REGN) are among the drugmakers most likely to be impacted by Medicare drug price negotiation, according to a Bloomberg Law analysis.
That's because they sell the priciest and most used drugs by Medicare enrollees.
For example, the Bloomberg analysis found that in 2020, Medicare Part D spent the most on J&J's (JNJ) Janssen division's blood thinner Xarelto (rivaroxaban) to the tune of $4.7B.
That same year, Part D spent $3.9B on Merck's (MRK) diabetes drug Januvia (sitagliptin) and $3B on Janssen's oncologic Imbruvica (ibrutinib).

In 2020, top Part B spending went to Regeneron Pharmaceuticals' (REGN) age-related macular degeneration treatment Eylea (aflibercept) ($3B), and Amgen's (NASDAQ:AMGN) osteoporosis drug Prolia (denosumab) ($1.6B). 
In the Senate, the Inflation Reduction Act passed on Aug. 7 includes Medicare drug price negotiation. House Speaker Nancy Pelosi said the House will pass the legislation on Friday.
Under the drug negotiation, beginning in 2026, HHS can choose 10 drugs from among the top 50 in Medicare Parts B and D to be discounted. Twenty more would be added by 2029.
A recent RBC Capital Markets report found the negotiation would impact revenue for pharmaceutical and biotech companies, but it wouldn't be that significant.