Bristol Myers, Pfizer to sell blood thinner Eliquis directly to US patients

Bristol Myers and Pfizer will begin directly selling their blockbuster blood thinner Eliquis to cash-paying U.S. patients at a 43% discount, lowering the monthly cost from $606 to $346. This initiative, targeting uninsured or underinsured individuals, responds to Trump administration pressure on drug pricing. However, the discounted price is still significantly higher than the $231 Medicare price negotiated under the IRA and international rates, prompting skepticism from analysts regarding its true affordability and broader impact on U.S. drug pricing reform.

Analysis

Bristol Myers Squibb and Pfizer have initiated a direct-to-consumer sales program for their blockbuster blood thinner, Eliquis, offering it to uninsured U.S. patients at $346 per month. This represents a 43% discount from the list price of approximately $606 but is a preemptive measure taken under political pressure from the Trump administration to lower drug costs. The strategic significance of this move is questionable, as the discounted price remains substantially higher than both international prices, which are as low as $55-$65 per month in Europe, and the $231 monthly price negotiated under the Inflation Reduction Act (IRA) set to take effect in the coming year. Analysts and health experts are skeptical, noting the price is likely still prohibitive for the target demographic, as patient adherence typically falls when out-of-pocket costs exceed $100. This initiative appears to be a defensive, public relations-oriented action rather than a material change to the pricing structure, especially given the impending and more impactful IRA price reductions for Eliquis, a drug that generated $11.4 billion in 2024 global revenue.

Key Decisions for Investors

• Consider this program's financial impact on BMY and PFE as minimal, as it targets a small patient segment and is overshadowed by the more significant, mandated price reduction coming under the IRA.
• Monitor the political and regulatory landscape closely, as this discounted price may be viewed as insufficient by the administration, potentially inviting further pressure under policies like 'most-favored-nation' pricing.
• Factor in the confirmed $231 per month IRA price for Eliquis starting next year as a key headwind for revenue forecasts, as this government-negotiated rate will have a far greater impact than this voluntary discount program.
• Recognize that the moderately negative sentiment reflects market skepticism about the program's efficacy and views it as a concession to pricing pressures that are set to intensify.