AbbVie says Trump pressing for larger Medicare drug price cuts

Reuters Reported -AbbVie said on Friday the Trump administration was pushing for steeper cuts in this year’s Medicare drug price negotiations, which in 2024 yielded discounts of as much as 79%.

AbbVie’s irritable bowel syndrome drug Linzess and antipsychotic medication Vraylar were among the 15 drugs targeted this year for Medicare price negotiations that end on Saturday.

The company said these cuts, which have yet to be made public and will take effect in 2027, would not affect its long-term guidance.

AbbVie shares dropped more than 4% after it said quarterly sales of its aesthetic products – which include anti-wrinkle treatment Botox – fell 3.7% from last year.

ANALYSTS FOCUS ON DISCOUNTS

As drug companies post third-quarter results, analysts have asked whether U.S. President Donald Trump – who has prioritized lowering drug prices this year – is pressing for deeper discounts than his predecessor.

Last year, the Biden administration announced it hoped to save $6 billion in 2026 alone after negotiating down the prices of 10 top-selling prescription drugs used by Medicare. AbbVie’s big-selling leukemia drug Imbruvica faced the lowest percentage cut of 38% from those negotiations.

AbbVie on Friday raised its 2025 profit forecast, after strong sales of newer immunology drugs Skyrizi and Rinvoq helped lift third-quarter results above estimates.

The company expects adjusted annual profit per share of between $10.61 and $10.65, compared with its previous expectation of $10.38 to $10.58.

The North Chicago-based drugmaker has been leaning on Skyrizi and Rinvoq to offset declining U.S. sales of its once best-selling arthritis treatment Humira since close copies of the drug arrived in 2023.