Health Affairs December 1, 2023
In a November Health Affairs Forefront article, John O’Brien, James Motyka and Julie Patterson argued that Medicare price negotiation under the Inflation Reduction Act (IRA) could delay the entry of new drugs to the market, reduce the number of new indications, and generally reduce the incentives to conduct clinical trials. But a closer look at the drugs the authors picked to illustrate their arguments shows that their concerns are – at best – overstated. Their analysis discounts important factors that spur investment in pharmaceutical research and development – market opportunities beyond Medicare, competition, and evidence requirements.
Take their example of the blood thinner rivaroxaban. As the authors note, clinical trials for additional indications of rivaroxaban were sequenced to add larger...
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