Merck, Bristol Slip on Risk From Proposed CMS Rule, RBC Says

Shares of Merck, Johnson & Johnson, Bristol-Myers Squibb slide on Monday after analysts call out potential risk from a rule proposed by the U.S. Centers for Medicare & Medicaid Services to lock in lower prices for the Medicare drug price negotiation program.

• Merck slips 2.2%; Johnson & Johnson -2.0%, Bristol-Myers -0.98%
• RBC analyst Trung Huynh says “JNJ, BMY, MRK face negotiation risk under new rule”
  • “CMS’s proposed rule to close the fixed combination drug loophole, which represents a negative headline risk for several names in our coverage: JNJ, BMY, and MRK, who have all pursued subQ combos with Darzalex, ...