Democrats' drug pricing deal is 'not a bad outcome' for pharma, analysts write

​​​​​After intense debate over the last few weeks, Democratic leaders appear to have landed on a framework for a drug pricing deal. The pharmaceutical industry has strongly resisted some of the proposals presented in the years-long drug pricing brouhaha, and the final result is "not a bad outcome" for drugmakers, one team of analysts recently stated.

The deal includes partial Medicare Part B and D negotiations, which Evercore ISI analysts called "negotiation in name only." The "practical way to think" about this component of the deal, the analysts wrote to clients Friday, is that drugs on the market for five to 12 years will get a 25% discount in Medicare. Medicines six to 12 years old will get a 35% discount, and a higher discount will apply to older drugs. There's a steep tax for dodging the negotiation process, the analysts wrote.