Is Big Pharma About To Win? Goldman Sachs Weighs In On 340B And Medicaid Shifts

Medicaid funding, totaling approximately $900 billion per year and serving around 72 million participants, and the 340B program are key focus areas for potential healthcare reforms.

Goldman Sachs analyst Salveen Richter, however, warns that federal Medicaid cuts could lead to stricter policies and lower drug coverage.

Per Richter, the 340B program is currently facing increased scrutiny, with proposed reforms that could potentially benefit biopharma companies by limiting eligibility for drug discounts, which would enable “transfer of profits” from providers back to biopharma.

This shift could positively impact major biopharma companies with high exposure to 340B drugs, such as Merck & Company, Inc. (NYSE:MRK), Gilead Sciences, Inc. (NASDAQ:GILD) and Bristol-Myers Squibb Company (NYSE:BMY).

However, the specifics of these reforms are still uncertain, which could cause “volatility” in the healthcare sector until more details are released.

At the ...

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