Xeljanz to be Removed from Negotiations
CMS announced that Xeljanz and Xeljanz XR will be removed from the Medicare Drug Price Negotiation Program in 2029 after determining the drugs will soon face generic competition. While Xeljanz was included in the third round of Medicare negotiations, the lower negotiated prices which will be announced in November 2026 will only be in effect for one year, beginning on January 1 2028. Medicare negotiation is designed to target high-cost, single-source drugs that lack competition. Once meaningful competition enters the market, those drugs are no longer eligible for negotiation — reflecting the program’s role as a strong counterweight to monopoly pricing, not a replacement for competition. While it is too soon to know the impact the new competitor will have on overall prices, increased generic or biosimilar entry has historically driven significant savings for patients, and one generic coming to market lowers prices by an average of 39%. — [FDA]
Trump to End Medicare Drug Premium Subsidies
For years, the pharmaceutical industry claimed that Medicare drug price reforms would drive higher premiums for patients. Now, the Trump administration is ending a program specifically designed to keep those premiums down. A primary driver of high premiums is the high cost of prescription drugs, forcing people with Medicare to effectively subsidize pharma profits. Instead of shifting more costs onto patients, policymakers should focus on lowering the prices drug companies are allowed to charge. — [WSJ, NYT, USA Today, Common Dreams]
New Pharmaceutical Tariffs Take Effect
President Trump’s Section 232 tariffs on patented pharmaceutical products and their ingredients took effect today, imposing rates of up to 100% under a national security justification. While companies with approved onshoring plans or most-favored-nation (MFN) agreements may face lower rates, and generics are currently exempt, those exemptions could change within a year, and generics are also being threatened by new tariffs announced earlier this month. Given that only 10% of active pharmaceutical ingredients (APIs) used in U.S medicines are produced domestically, these tariffs are likely to have widespread impacts across the supply chain. Tariffs do nothing to address the root cause of high drug prices. Instead, they increase the risk of drug shortages and drive higher costs for patients, as manufacturers are unlikely to absorb additional expenses. Any potential benefits from reshoring will likely take years to materialize, while price increases will be felt almost immediately as costs to American patients are already escalating when it comes to healthcare. — [White House]
Patient Advocate Spotlight: Emmabella Rudd
Background: Florida State University student, documentary producer, and insulin accessibility advocate since her diagnosis at 5 years old.
Condition: Type 1 Diabetes
Drug: Insulin ($3,000 per year)
In her words:
“It’s frustrating to see pharmaceutical companies bask in the protection of numerous patents around their insulin products. They’re interested in appearing concerned about drug affordability, but their efforts are always superficial and short-lived. Drug companies need to remember that their actions affect real human lives, and at the end of the day, the people will have the power.”