Bristol Myers to sell psoriasis drug at over 80% discount
1. Bristol Myers Squibb will sell Sotyktu at an 80% discount. 2. Direct sales to cash-paying patients may affect revenue projections.
FAQ
Why Bearish?
Such a significant price reduction could indicate financial struggles or competitive pressure that may undermine profit margins, similar to 2017 when companies faced backlash over drug pricing, impacting stock valuations.
How important is it?
The drastic price cut for Sotyktu will likely alarm investors, affecting perceptions of BMY's pricing strategies and future revenue growth.
Why Short Term?
The immediate implications of such pricing strategies will likely affect quarterly earnings and investor sentiment, reminiscent of the short-term impacts seen when Gilead Sciences cut prices for hepatitis C drugs.