Fierce Biotech July 31, 2024
Since its passage in August 2022, the Inflation Reduction Act (IRA) has attracted criticism and even derision from biopharma leaders because it gives Medicare the ability to negotiate drug prices. The possibility of lowered revenues and less money to put into R&D led some attendees at the 2023 American Society of Clinical Oncology and BIO International Convention meetings to dub the bill the “Innovation Reduction Act.”
In a 2022 quarterly conference call, Merck CEO Robert Davis said the bill’s reduction of drug prices would be “highly chilling on future innovation.”
But two new studies suggest these fears may be overblown. Analyses of R&D spending and equity investment in biotech predict that the industry is capable of weathering a drop in...
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