AMGN · 10-Q · 2026Q2 · Full report
Drug Pricing Policy Impact
AMGEN INC · 2026-08-05 · Importance 66 · Surprise 74 · In source text
The Inflation Reduction Act (IRA) and expanded use of the 340B Program have negatively affected Amgen and are expected to continue affecting access, pricing, reimbursement and sales. CMS selected ENBREL for Medicare price setting beginning in 2026 and Otezla beginning in 2027; ENBREL’s six-month 2026 net selling price declined 25% due primarily to IRA Medicare Part D price setting and increased 340B mix. Amgen also took actions announced in December 2025 to satisfy components of the July Most-Favored-Nation Prescription Drug Pricing Executive Order letter, including the Administration’s pricing requests. CMS’s GENEROUS Model would require participating manufacturers to provide supplemental rebates to certain state Medicaid programs, while the ultimate effects of these evolving policies on net sales and profitability remain uncertain.
Key facts
- OB3 was enacted on July 4, 2025 source
- ENBREL was selected by CMS for Medicare price setting beginning January 1, 2026 under U.S. Medicare Part D price setting under the IRA. source
- Otezla was selected by CMS for Medicare price setting beginning in 2027. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | negative | committed | — | OB3 was enacted on July 4, 2025 |
| revenue | negative | realized | — | ENBREL was selected by CMS for Medicare price setting beginning January 1, 2026 under U.S. Medicare Part D price setting under the IRA. |
| revenue | negative | probable | — | Otezla was selected by CMS for Medicare price setting beginning in 2027. |