AstraZeneca has concluded its price negotiations with the IRA for its blockbuster drug Farxiga, in the latest update for pharma companies undergoing the process.
Ruud DobberRuud Dobber, AstraZeneca’s biopharma business unit head, reiterated that the price impact on Farxiga “will be very limited” considering that the new price will come into effect in January 2026 and its loss of exclusivity for the drug is only a few months later in April.
“All in all, it was a very useful exercise for us as a company and there are a lot of learnings,” Dobber said during a call with the media Thursday morning. Previously, CEO Pascal Soriot said the negotiations that started in February were “really encouraging” in context with what the industry was expecting.
Despite the “limited impact” comments on Thursday, the UK company appealed its federal court loss to overturn parts of the Inflation Reduction Act’s drug price negotiations. AstraZeneca argued that CMS’ latest guidance contradicts the law.
“AstraZeneca cannot fairly value its product without a judicial determination of whether the guidance is unlawful,” the company said.
According to CMS guidance, even if pharma companies had a July 15 deadline to present a final offer, they have until the end of the month to respond. The new, negotiated prices are set to be announced on Sept. 1.
Johnson & Johnson said last week it had received final price offers, but it was unclear then if it had accepted the deal. Both companies, alongside Bristol Myers Squibb, have downplayed the impact of the Medicare price negotiations on sales.
Farxiga, which is approved in type 2 diabetes, heart failure and chronic kidney disease, generated $3.8 billion in sales in the first half of the year. The drug has a list price of $582.25 for a 30-day supply.