OBJECTIVES: This study assesses the financial impact of Patient Protection and Affordable Care Act (PPACA) regulations on the pharmaceutical industry. METHODS:  U.S. Public Law was searched from 2007 - 2012 to identify profit-impacting regulatory changes on pharmaceutical and biotechnology manufacturers. Relevant results were then juxtaposed against aggregated and standardized Medicaid General Ledger accounts. A simple predictive model was built to examine the relationship. RESULTS:  Public Law 111-148, Sec. 2501 PRESCRIPTION DRUG REBATES indicated a change, effective as of March 23, 2010, increasing the minimum Medicaid Drug Rebate from 15.1% to 23.1% of the Average Manufacturer Price (AMP). The AMP is calculated as an aggregated average of all commercial sales transactions to and through retail community pharmacies.  By modelling the top 100 manufacturers' average profit measures, it is estimated that the industry, on average, stood to lose a minimum of 8% in profitability in the Medicaid market segment. The Medicaid market segment comprises approximately 20% of all U.S. manufacturer sales, suggesting the PPACA could have a considerable impact on pharmaceutical profits overall. CONCLUSIONS: Basic statistical methods suggest that PPACA regulations may directly impact pharmaceutical company profits. Given the significant consolidation, acquisition, divestiture, and reorganization activities during this time period, it is possible that these regulations are indirectly reshaping the pharmaceutical industry landscape. Regression analyses should be conducted to  analyze the link between the Medicaid rebate increases with manufacturer organizational change and subsequent business outcomes.