The National Institutes of Health (NIH) has decided to refrain from using its “march-in” authority to force drug makers Pfizer (NYSE:PFE) and Astellas Pharma to lower their cancer drug prices. Pfizer and Japan-based Astellas have jointly manufactured a prostrate drug called Xtandi. The annual wholesale cost per patient for Xtandi is between $160,000 and $180,000 in the U.S.
A “march-in” authority was established under the Bayh-Dole Act of 1980. A march-in authority is used to ensure that drugs made with federal funds to carry out research and development are available to the masses at reasonable prices.
Xtandi attracted a petition from the Union for Affordable Cancer Treatment back in 2016. The Union called for the government to reduce the price of Xtandi to make it more affordable to the common man.
However, NIH’s research found that the treatment for prostate cancer was widely available. Their response to the petition stated that “NIH does not believe that use of the march-in authority would be an effective means of lowering the price of the drug.” Last week, Astellas and Pfizer announced positive topline results from their Phase 3 EMBARK trial of Xtandi.
How High is PFE Stock Expected to Go?
On TipRanks, the average Pfizer price target of $48.54 implies the stock can grow by 19.4% from current levels. The pharmaceutical company has a Moderate Buy consensus rating based on four Buys, and ten Hold ratings. Year to date, PFE stock has lost 19.9%.
