Impact of the Trump administration's new round of drug-pricing agreements with mid-sized biotech companies will be muted, RBC Capital Markets says.
On Monday, the Trump administration signed deals with companies including Astellas 4503.T, BeOne Medicines 688235.SS and BridgeBio BBIO.O.
These companies have offered drugs to state Medicaid programs at most-favored-nation prices, that would require U.S. drug prices to be pegged to the lowest price paid by comparable high-income countries.
Medicaid already receives some of the steepest drug discounts, and exposure to the program is limited for most of the mid-cap companies we cover, RBC Capital Markets analysts said.
"We do not see our covered names sustaining any meaningful commercial impact and we think the perception of a removed overhang could, if anything, bring incremental upside" RBC analysts said.
For BBIO, analysts said the deal has limited impact commercially as Medicaid represents less than 2% of Attruby net sales.
Up to last close, Tokyo-listed shares of Astellas were up 15.4%, U.S.-listed shares of BeOne up 18.4%, BBIO up 0.13% YTD.
