STATEMENT: CBO Report Reiterates Drug Pricing Reform Will Have Minimal Impact On New Drugs Coming To Market
Lower Prices Could Improve Americans’ Overall Health By Making Drugs More Affordable
WASHINGTON, D.C. — The following statement was issued by David Mitchell, a cancer patient and founder of Patients For Affordable Drugs Now, in response to the Congressional Budget Office’s Simulation of New Drug Development:
“The CBO’s new analysis regarding the connection between lowering drug company revenue and drug company investment in developing new drugs concludes that drug pricing legislation will have less of an impact on the number of drugs coming to market than in CBO’s 2019 analysis. While the report finds that there is a potential for seven percent fewer new drugs to come to market under Medicare negotiation in the next three decades, it does not examine the impact on patients, access to medication, or the health of the American people.
“As we know, a new drug does not necessarily mean new innovation — only 10 to 15 percent of new drugs represent true therapeutic advancements. The seven percent loss may have no effect on development of truly innovative medications that would bring patients relief and command higher prices.
“CBO confirms and reiterates what we already know about Medicare negotiation — the impact on innovation will be negligible or nonexistent: we can mitigate any effect on new drugs by making sure the negotiation framework rewards value and by investing more money into the public agenciesthat lead to the most innovative drugs with the most therapeutic significance.”