This Week in Prescription Drug Pricing: Big Pharma caught in contradiction, the growing impact of the Inflation Reduction Act, and the power of public pressure
Welcome to the Week in Review.
1. Big Pharma Caught In Contradiction
Big drug companies continue to drum up bold lies regarding the impact of the drug price reforms in the Inflation Reduction Act (IRA). This is despite the overwhelming evidence pointing towards the law as an important conduit for delivering financial relief to patients, while also maintaining critical levels of investment in innovation. Drug company executives, who are beholden to investors, recently stated that Medicare drug price negotiations were “encouraging” and would have “modest impact.” At the same time, several pharma companies have launched aggressive lawsuits attempting to dismantle Medicare negotiations, arguing that the program will deter investments and hurt revenue. In The Hill, P4AD’s Merith Basey calledout the hypocrisy of drug industry executives and allies who are talking out of both sides of their mouths: “We know that the impact of the IRA is not going to affect their bottom line in the way that they like to cry poor every time anyone tries to touch anything that gets in the way of their monopoly power.” Lower negotiated drug prices will not make a dent in Big Pharma’s huge profit margins, while delivering transformative relief to patients. “A few hundred dollars is a massive difference for one individual,” Merith continued. “Again, this is about ordinary people.” It’s evident that investments in drug development are not slowing down. So far this year, 21 biotech startups have received hundreds of millions of dollars in investments from venture capitalists. This juggling act displays Big Pharma’s lack of credibility and demonstrates their intention as clear as day: preserving monopoly pricing power at the expense of patients. — (Endpoints, Endpoints, The Hill, The Hill, Endpoints)
2. The Growing Impact Of The Inflation Reduction Act
Patients continue to reap the benefits of the groundbreaking drug price reforms in the Inflation Reduction Act. The number of vaccines administered to adults in the first nine months of 2023 exceeded pre-pandemic levels, largely thanks to the new vaccine provision introduced last year, which provides coverage without patient cost-sharing of certain recommended vaccines for people on Medicare Part D. “This underscores the importance of preventive health care and emphasizes the overall benefits of the Inflation Reduction Act in guaranteeing that Medicare patients receive accessible, affordable high-quality care,” the Department of Health and Human Services (HHS) spokesperson LaTanya Marble told Politico. The drug price reforms in the Inflation Reduction Act are directly addressing the urgent needs of patients living in the U.S. who pay on average nearly three times more for their medications than residents in other peer nations. — (Politico, Commonwealth Fund)
3. The Power of Public Pressure
Earlier this week, AstraZeneca and GlaxoSmithKline (GSK) responded to increased pressure and scrutiny from patients and lawmakers by announcing plans to cap out-of-pocket costs for some of their inhaler products at $35 a month. This move follows in the footsteps of Boehringer Ingelheim, which made a similar commitment earlier this month. The spotlight has been on the egregious price hikes of inhaler medications over the past year, prompting both the Senate Health, Education, Labor, and Pension (HELP) Committee and Federal Trade Commission (FTC) to call out the four major inhaler companies for patent abuse tactics that drive up prices and delay lower-cost competition. For example, AstraZeneca’s Breztri Aerosphere inhaler costs $645 in the U.S. compared to just $49 in the United Kingdom (U.K.) and GSK’s Advair HFA inhaler costs $319 in the U.S., while it is sold for only $26 in the U.K. These decisions by drugmakers to cap costs mark a significant milestone for some patients who rely on these medicines to manage conditions like asthma and chronic obstructive pulmonary disease. Jennifer, a patient advocate in Colorado, wrote to us about her experience with breathing complications, which led her to a prescription for an inhaler costing $495. “How could I pay for that regularly plus my mortgage, utilities, car insurance, gas to get to work, and the premium on my health insurance?” Her story is one of many shared experiences we’ve heard from patients who are forced to go without their inhaler medications due to cost. We urge Teva, the last of the four major inhaler companies, to immediately follow suit and reduce copay costs for patients. — (The Hill, Reuters, Common Dreams, CNN, FTC)
PRICE WATCH: Lenmeldy, a new life-saving gene therapy for the genetic disorder metachromatic leukodystrophy (MLD) will be the most expensive drug in the world at $4.25 million. Innovation is worthless if patients can’t afford it — we urgently need to address the high launch prices of transformative cell and gene therapies coming to market.
Have a great weekend!
Welcome to the Week in Review.
1. Biden Promises to Expand The Inflation Reduction Act
Key Senators remain committed to advancing bipartisan bills aimed at cracking down on pharmacy benefit managers (PBMs) and their opaque tactics, which drive up costs for patients and taxpayers. Senate Finance Committee Chair Ron Wyden and Ranking Member Mike Crapo, joined by advocates, held a press conference yesterday to encourage legislative action that would hold the secretive middlemen accountable. PBMs negotiate discounts, or rebates, with drug companies in exchange for preferable placement on formularies. However, the specific terms of these rebate contracts, including the amount of the discounts and how they benefit patients, are not disclosed to the public. As a result, it’s unclear whether PBMs are using their power to ensure patients are getting the best drug at the best price. Prior to the press conference, the Senators penned a letter to Senate Majority Leader Chuck Schumer, Senate Minority Leader Mitch McConnell, and members of the Senate Finance Committee, reaffirming their commitment to increase transparency and accountability in the PBM industry during this Congress. It’s time to pass reforms to ensure PBMs prioritize serving patients and consumers over padding their bottom line. — (Senate Finance Committee, Axios, Fierce Healthcare, DCNewsNowVimeo, Center for American Progress, Senate Finance Committee)
2. Exposing Big Pharma Lies
Despite warnings from Big Pharma suggesting the drug price reforms in the Inflation Reduction Act would stifle research and development (R&D) efforts and impede profits, recent data presents a starkly different picture. Contrary to the narrative propagated by drug companies and their trade associations, the industry is investing in R&D at record levels. Top drug companies have spent $153 billion on R&D, and mergers and acquisitions areincreasing at a steady pace. Additionally, costly advertising slots for major TV entertainment events this year, like the Super Bowl and The Oscars, weredominated by drug industry behemoths Pfizer and AbbVie. A report from Protect Our Care showed that last year alone, 16 of the largest drug companies reported $684 billion in earnings, a shocking figure that reflects the absurdly high prices set by drug makers. It’s glaringly apparent that Big Pharma is swimming in profits, all while patients struggle to afford essential medications. — (Endpoints, STAT News, Wall Street Journal, Axios, Fierce Pharma, Protect Our Care, Accountable.US)
3. Medicare Negotiation Puts Patients Over Profit
Big Pharma is marshaling its vast resources toward stopping the implementation of Medicare negotiations, one of the most popular and transformative drug price reforms in the Inflation Reduction Act. Kelly Bagby, Vice President at AARP Foundation Litigation, succinctly explained the objectives behind the various lawsuits pharmaceutical corporations have filed: “They want to make sure their historical profitability is maintained, and not changed, while at the same time trying to delay everything.” To date, however, judges in three district courts have sided with the Biden administration, and last week, oral arguments were presented in four cases brought by big drug companies, during which, the judge expressedskepticism that anything other than maintaining their bottom line motivated their challenges to Medicare negotiation. “All of the momentum is clearly on the side of the government at this point, and not on the side of some of these other manufacturers,” Theresa Carnegie, a health care attorney with Mintz Levin, told CNBC. — (P4ADNow, The Washington Post, FiercePharma, Bloomberg Law, CNBC, Forbes, STAT News, CNBC)
BONUS: A new study from Bentley University shows that the National Institutes of Health (NIH) invested $11.7 billion on research leading to the approval of the first 10 drugs up for Medicare negotiation. Lower negotiated drug prices will help ensure patients and taxpayers get a better deal on these widely-used, high-cost medications. We deserve a fair return on the drugs taxpayers paid to invent!
Have a great weekend!
My name is Rose Keller, I am a 22-year-old student at Bowdoin College. As an infant, I was diagnosed with cystic fibrosis, a rare and progressive genetic disorder with no cure. And my ability to breathe depends entirely on numerous prescription drugs.
Like countless others grappling with chronic illnesses, I’ve witnessed firsthand the burden exorbitant drug costs have imposed on my family. Last year alone, my family spent almost $3,000 out-of-pocket for my life-sustaining medications.
The only medication that treats the underlying cause of my disease carries an annual list price upwards of $300,000. The medication brings enormous relief, but its cost casts a shadow over my life.
As a young adult about to graduate from college, I should be focused on my next steps – finding a job, applying to law school, and weathering my dad’s embarrassing stories at graduation. One day, I hope to be an attorney who fights for good governance practices and effective public administration. I want to spend my time planning for that future.
Instead, I am worried about my ability to afford my health care and live an independent life. But amidst these challenges, the Biden Administration has offered a glimmer of hope.
President Biden said he’d take on big pharma and beat them – and he has. His Inflation Reduction Act lowered prescription drug prices for seniors. It’s a big deal.
Now he’s fighting to cap out-of-pocket drug costs at $2,000 for all Americans. For people like my family. For people like me.
President Biden believes health care is a right – not a privilege, and so do I.
Welcome to the Week in Review.
1. Biden Promises to Expand The Inflation Reduction Act
In a week marked by significant developments in the fight to make medicine more affordable, Patients For Affordable Drugs Now (P4ADNow) applauded President Biden’s ongoing commitment to reducing drug prices for patients nationwide. The Biden Administration’s proposals to expand Medicare negotiation to 500 drugs over a decade and extend cost-saving measures to millions of people on private insurance, among other reforms, signals a potentially monumental step toward achieving affordable drugs for every American. Furthermore, President Biden’s State of the Union address underscored the historic achievements of the Inflation Reduction Act for patients and highlighted the proposals he had announced on the eve of the address. P4ADNow patient advocate, Steven Hadfield, emphasized the impact of the reforms, sharing his personal experience and the relief he has felt thanks to capped monthly insulin costs and expressed hope for further relief brought by Medicare negotiation. His presence as a guest of First Lady Jill Biden during the State of the Union exemplifies the urgency and importance of lowering drug prices for millions of Americans. P4ADNow continues to advocate for the implementation of the new drug price law and bipartisan bills in Congress that help address the challenges faced by patients like Steven. We know the momentum and public pressure to reduce drug prices are stronger than ever. – (P4ADNow, P4ADNow, STAT News, Pharma Phorum, P4AD, AARP, NPR, New York Times, Yahoo News, P4ADNow)
A quick selfie with P4AD patient advocate, Steven Hadfield, before he joined First Lady Jill Biden for the SOTU
2. Legal Battles Over Medicare Drug Price Negotiation Heat Up
On Thursday, a federal district judge in New Jersey heard oral arguments in four of several cases challenging Medicare’s authority to negotiate drug prices. In a courtroom exchange that captured attention, Judge Zahid Quraishi probed the industry’s arguments and questioned the purported financial burdens Medicare negotiation would have on drugmakers, injecting a note of skepticism by remarking, “A lot of people would say pharmaceutical companies could give up an arm. They have a lot of appendages.” This observation reinforced the judge’s scrutiny of the industry’s claims. Rachel Cohrs of STAT News highlighted the judge’s remarks that these big drug companies were “businesses with the goal of profit… These companies are not Mother Teresa developing drugs for free for the American public.” A P4AD patient advocate was also in the room representing patients and listening to the arguments, which came just days after a federal judge in Delaware issued a sweeping ruling against pharmaceutical giant AstraZeneca in a case brought by the drug company seeking to overturn Medicare negotiation. Last month, a federal district judge in Texas dismissed a similar lawsuit from the industry trade group Pharmaceutical Research and Manufacturers of America (PhRMA), and in September a District Judge in Ohio ruled against the U.S. Chamber of Commerce’s case. That’s three times that a judge has ruled against pharma and for patients of the United States, and as this headline from Fast Company puts it, “Big Pharma is losing its fight to avoid prescription-drug-price negotiations”. – (P4AD, STAT News, BioSpace, Endpoints News, Georgetown Law, Reuters, FastCompany)
3. Boehringer Ingelheim Caps Inhaler Costs Amid Public Pressure
In a move spurred by mounting public pressure and widespread demand for lower drug prices, Boehringer Ingelheim has announced plans to cap out-of-pocket costs for its inhaler products at $35 per month starting June 1. The decision comes amidst growing criticism, notably from Senator Bernie Sanders, who, in his role as chair of the Senate Committee on Health, Education, Labor, and Pensions (HELP) launched an investigation into efforts by pharmaceutical companies to manipulate the price of asthma inhalers. These big drug companies have heard widespread complaints from American patients and consumers about the inability to afford their inhalers, especially considering they are drastically cheaper in other countries. This move draws parallels to actions taken by insulin manufacturers, including Sanofi, Novo Nordisk, and Eli Lilly, all of whom lowered the price on some of their older insulins after years of criticism over pricing practices. These developments help underscore the power of grassroots advocacy in driving industry reforms. While welcomed by many patients, Boehringer Ingelheim’s action demonstrates the ongoing need for sustained efforts to guarantee access to essential medications for all patients. – (Reuters, STAT News, The Lancet, The Hill, FiercePharma, P4AD)
In response to President Biden’s comments in his State of the Union address about the historic drug price reforms in the Inflation Reduction Act and the forward-looking proposals he announced to further reduce drug prices, Merith Basey, Executive Director of Patients For Affordable Drugs Now, issued the following statement:
“Tonight, President Biden highlighted the monumental drug price reforms achieved through the Inflation Reduction Act, a cornerstone of his agenda and an issue that is overwhelmingly supported by the American people who are tired of being ripped off by pharmaceutical companies to the detriment of their lives and livelihoods.
“The enactment of the historic drug price reforms, coupled with the President’s proposal to more than double the number of drugs subject to Medicare negotiation and expand cost-saving measures to millions of people on private insurance, would be transformative toward ensuring that everyone in the U.S. can access the drugs they need at prices they can afford.
“This landmark legislation is a testament to the relentless efforts of patients. While we are already witnessing the impact of some of these reforms to lower drug prices, we continue to hear from patients burdened with high drug prices who are desperate for relief. On behalf of patients, we will continue to advocate for policies that protect and expand on the drug price reforms in the Inflation Reduction Act, dismantle Big Pharma’s abuse of the patent system, and make drugs more affordable for all who need them.”
P4ADNow patient advocate, Steven Hadfield, was a guest of First Lady Jill Biden in her box during the State of the Union this evening. Steven, who is 71 and a longtime resident of North Carolina, takes Januvia for his diabetes, which is one of the first 10 drugs selected for Medicare negotiation. He is also living with blood cancer and despite being in his 70s, cannot retire due to the price of his medications. He shared the following statement:
“’For far too long, big drug companies have made a fortune while patients like me live in constant fear, wondering how we’ll pay for our medicine. The Inflation Reduction Act has been a lifeline, reducing my insulin costs from $400 to $35 per month. Medicare’s ability to negotiate lower drug prices offers hope for millions of patients like me. Less expensive drugs would finally allow me to rest more often or hopefully help me transition from working full-time to working part-time. I am honored to be a guest of First Lady Jill Biden during the State of the Union as President Biden advocates for lower drug prices. He understands that drugs don’t work if people can’t afford them.”
BACKGROUND The historic Inflation Reduction Act is lowering prescription drug prices and reducing out-of-pocket costs for millions of people in this country.
Starting in 2026, negotiated prices will take effect on 10 of the highest-cost drugs for Medicare, lowering prices and out-of-pocket costs for millions of patients. Yesterday, President Biden proposed expanding Medicare negotiation to 50 drugs every year instead of a maximum of 20 per year.
Insulin costs in Medicare are capped at $35 monthly. About 1.5 million people on Medicare who use insulin would have saved $734 million in Part D and $27 million in Part B out-of-pocket costs in 2020 if these caps had been in effect in 2020.
When the $2,000 out-of-pocket cap on prescription drugs applies in Medicare in 2025, nearly 19 million seniors and others on Medicare are projected to save $400 per year on prescription drugs. In yesterday’s proposal, President Biden called on Congress to expand the $2,000 out-of-pocket cap to all private insurance – expanding the cap to 189 million people not on Medicare.
Recommended vaccines that would have cost $100-200 per vaccination are now free under Medicare Part D because of the Inflation Reduction Act. In 2021, 3.4 million people received vaccines under Part D.
Yesterday’s proposal also includes a $2 cost-sharing limit for specific generic drugs such as statins and beta-blockers for people on Medicare Part D.
It also included a proposal to improve access to cell and gene therapies, starting with addressing sickle cell disease, a condition that affects more than 100,000 people in the United States, and extending requirements for drug companies to pay rebates when their price increases exceed the rate of inflation.
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Patients for Affordable Drugs Now, the C4 arm of P4AD, is the only national, bipartisan patient advocacy organization focused exclusively on policies to lower drug prices. We help educate and mobilize patients in support of legislation to fix our broken system. P4ADNOW does not accept funding from organizations that profit from the development and distribution of drugs.
Today, the Biden Administration announced proposals to more than double the number of drugs to be negotiated by Medicare and expand the $2,000 cap on out-of-pocket prescription drugs to people on private insurance – extending savings to an additional 189 million people not on Medicare.
The proposal also includes a $2 cost-sharing limit for specific generic drugs such as statins and beta-blockers for people on Medicare Part D, improving access to cell and gene therapies, starting with addressing sickle cell disease, a condition that affects more than 100,000 people in the United States, and extending requirements for drug companies to pay rebates when their price increases exceed the rate of inflation.
Merith Basey, Executive Director of Patients For Affordable Drugs Now, responded to the proposal with the following statement:
“These proposals would expand on the historic progress already being made as a result of the drug price reforms in the Inflation Reduction Act. For two decades, Americans have been held hostage by a system preventing the United States government from negotiating for lower drug prices on behalf of patients. These proposals would build upon hard-won victories and represent another step forward for patients and advocates in our ongoing fight to ensure that every person can get the drugs they need at prices they can afford. As we continue to hear from patients every day who are being forced to make impossible choices between skipping their medication or paying their bills —the urgency of this fight has never been more apparent.”
Americans pay 3-8 times more than other high-income nations for brand-name prescription drugs, and over 90 percent of voters from across the political spectrum said lowering prices should be an important or top priority for Congress. This announcement on the eve of President Biden’s State of the Union address, signals the Biden Administration’s commitment to prioritizing lowering drug prices in the coming year.
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Welcome to the Week in Review.
1. Court Deals Major Blow to AstraZeneca
Yesterday, a federal judge in Delaware delivered a significant blow to AstraZeneca by ruling against the company in its effort to halt the negotiation of its diabetes drug, Farxiga, marking a pivotal moment in the ongoing battle to defend Medicare negotiations. Patients For Affordable Drugs’s Merith Basey hailed this ruling as a critical step forward in ensuring fair drug prices. “On behalf of patients across this country we are encouraged but not surprised that the court has rejected AstraZeneca’s self-serving arguments and essentially said the company didn’t have a leg to stand on,” she said. “This ruling sends a clear message that Big Pharma’s greed cannot continue to be prioritized over patients’ well-being and underscores the importance of Medicare negotiation to begin to rein in exorbitant drug prices.” Last year, AstraZeneca generated over $4 billion in revenue from Farxiga, a medication used to treat patients with type 2 diabetes, heart failure, as well as chronic kidney disease. CMS data shows that nearly 800,000 patients on Medicare Part D utilized Farxiga between May and June 2022. Patients like Karen in Colorado, who lives on a fixed income and faces a $600 bill for a three-month supply of Farxiga, will benefit from a lower negotiated price scheduled to take effect in 2026. This case was one of nine threatening Medicare negotiation and once again a judge has ruled against the drug industry and for the United States. This Thursday, March 7th, four lawsuits filed by Bristol Myers Squibb (BMS), Novo Nordisk, Novartis, and Johnson & Johnson (J&J) will present combined oral arguments to a federal judge in New Jersey. P4AD is unwavering in our commitment to fight the pharmaceutical industry’s attempts to use the U.S. legal system to undermine policies aimed at reducing drug costs and ensuring patients can access the medications they need at prices they can afford. – (Endpoints News, P4AD, BioSpace, CMS)
2. Legislators Oppose Efforts To Undermine The Inflation Reduction Act
On Thursday, the House Energy and Commerce Subcommittee on Health held a hearing on legislative proposals related to patients living with rare diseases. Several bills that were the focus of the hearing would, if implemented, undermine the drug provisions in the Inflation Reduction Act. P4ADNow’s founder, David Mitchell sent a comprehensive 21-page statement to the subcommittee ahead of the hearing debunking Big Pharma’s claims including that the Inflation Reduction Act would inhibit investment in small-molecule drug development and drugs that treat rare diseases. David, who is a patient with a rare, incurable cancer, underscored how the law actually provides key incentives for drug investment and strikes the right balance between affordability and access. During the hearing, several subcommittee members echoed David’s sentiments, expressing opposition to bills that would curtail Medicare’s negotiating authority. Rep. John Sarbanes summarized the hypocrisy of drug companies who often cry wolf about investment in research and development, citing David’s statement which revealed that “Johnson & Johnson reported an 11.8 percent increase in R&D spending in 2022, Merck reported an 11 percent increase in R&D spending, and Moderna reported a 65 percent increase in R&D spending and projected further increases in 2023.” Despite claims that the new drug price law would stifle innovation, real-world evidence suggests otherwise: Big Pharma’s primary goal is to safeguard profits from its blockbuster drugs. The opposition from other committee members including Rep. Frank Pallone, the Ranking Member of the full committee, underscores the strong opposition from many Members to undermine the Inflation Reduction Act. — (YouTube, P4ADNow, Politico, PORTAL Research)
3. The High Cost Of Insulin
A new study published in Diabetes Research and Clinical Practice highlights the escalating financial burden faced by people managing diabetes. Researchers found that from 2009 to 2018, total costs associated with diabetes care increased, with people living with type 1 diabetes experiencing the most substantial rise in out-of-pocket expenses. “Studies show that the more a patient pays out-of-pocket, the less likely they are to stick with their medication long term, which poses a serious risk to their health,” said lead author Evan Reynolds. Fortunately, the $35 monthly insulin copay cap for patients on Medicare in the Inflation Reduction Act has brought significant savings for patients. But, there’s more to be done to ensure everyone can access their insulin at prices they can afford. — (University of Michigan, KFF)
BONUS: A new report from Protect Our Care found that in 2023, 16 of the largest drug companies reported a whopping $684 billion in earnings — ”a figure that is higher than the gross domestic product (GDP) of 88 percent of the countries in the world.” Remind us again how drug companies are hurting from the new drug pricing reforms?
Patients For Affordable Drugs Now Founder Sets The Record Straight On Key Incentives For Innovation In Historic Drug Price Law Ahead of Energy and Commerce Health Subcommittee Hearing
David Mitchell, founder of Patients For Affordable Drug Now and a patient with a rare incurable cancer, urged Congress not to bend to drug industry scare tactics and fear-mongering and not to weaken provisions to lower prices in the Inflation Reduction Act. He made his remarks in an expansive 21-page statement submitted to the House Energy and Commerce Subcommittee on Health, ahead of tomorrow’s hearing focused on legislative proposals related to rare diseases.
Mitchell’s statement sets the record straight regarding the Inflation Reduction Act’s impact on small-molecule drugs. He refutes with real-world evidence, claims from the pharmaceutical industry that investments in small molecules would lag following the passage of the law and underscores the importance of safeguarding orphan drug incentives while preventing pharmaceutical industry abuse.
Drawing from his own experience as a rare disease patient, Mitchell highlights how the Inflation Reduction Act effectively addresses both innovation and affordability concerns. “I care deeply about innovation and new drug development. My life depends on it. Without innovation, I will die sooner than I hope to. That is just an unfortunate fact,” he wrote. “The Inflation Reduction Act restores balance to move us in the direction of fair prices and profits while still getting the innovation we need.”
David’s statement also highlights the stories of two patients, Sue from Wilmington, Delaware, and Cheryl from Louisville, Kentucky. Sue is living with a form of blood cancer and takes Imbruvica, which costs $18,000 a month. After insurance, she pays the first $8,000 in 2-month copays and then $1,000 a month thereafter. At 76 years old, Sue is working full-time to afford this medication, but because of the Inflation Reduction Act, she will save between $12,000-$14,000 this year with the out-of-pocket cap phasing in at the catastrophic level. Cheryl requires inhalers, like Trelegy, but because of the price, she often goes without until she has a bad episode. The $350 to $800 price tag per month presents a significant financial burden for Cheryl, who emphasized the absurdity of such costs for essential medication needed to breathe every day. Their experiences shed light on the urgent need for lower drug prices to ensure access to vital treatments for all patients.
Key highlights from the statement underscore the law’s profound impact on innovation and affordability:
The Inflation Reduction Act strikes the right balance in incentivizing rare disease drug development while preventing the abuse of orphan drug status to extend higher prices indefinitely. David’s statement underscores the need to maintain incentives for true orphan drugs while curbing abuse within the system that drug companies take advantage of to protect big blockbuster profits.
Contrary to industry fear-mongering, Mitchell referenced the Congressional Budget Office’s (CBO) assessment that the Inflation Reduction Act’s impact on new drug development would be minimal, with only two or three of foregone new drugs likely to represent true therapeutic advancements over 30 years. Mitchell’s statement underscores the resilience of investment in drug development despite industry resistance to policy reforms, with credit to the Inflation Reduction Act for preserving the primary means of rewarding innovation and ensuring profitability for drug companies–allowing drug companies to continue to set launch prices.
Medicare negotiation will increase incentives for more innovative drugs and drug companies will still enjoy increased revenue and profit in the world’s most lucrative market for drugs. “The industry has plenty of money for innovation. In the wake of the Inflation Reduction Act passage, investors are upbeat,” wrote David. “Drug company stocks are doing fine. The industry is flush with cash and has great access to capital.”
You can find the full written statement HERE. David will also be available for interviews and to comment on tomorrow’s hearing. To schedule please reach out to Emma Sands at [email protected]
