Pfizer CEO points to IRA as a factor that made Seagen an attractive target

One of the reasons Pfizer sought to purchase Seagen, as part of a $43 billion deal announced this morning, is that the Seattle-based biotech will be able to withstand the coming headwinds of the Inflation Reduction Act and the Medicare price negotiations that come with it.

Unlike some of his pharma CEO peers who have lambasted the new law, Pfizer CEO Albert Bourla told investors on a call this morning that there are two specific factors pertaining to the IRA that will actually help with the combo of Pfizer and Seagen moving forward:

  1. The $2,000 out-of-pocket cap for seniors, which takes effect in 2025 and will mean that more of those on Medicare will be able to access expensive cancer drugs like those developed by Seagen. All four of Seagen’s currently marketed products have list prices of more than $100,000 per year.
  2. All of…
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