BCG September 14, 2023
By Suchita Shah, Jim Meyers, Mitch Kirby, and Lu Chen

Key Takeaways

Three new provisions concerning Medicare prescription drug prices have major ramifications for companies and the broader health care ecosystem.
  • Companies will need to evolve their R&D strategies and capabilities in portfolio prioritization, clinical development, financial considerations, and real-world evidence.
  • The IRA will also affect payers, patients, and providers, and therefore may have knock-on effects that need to be considered as well.
  • Although the full ramifications of the IRA won’t be known for quite a while, companies need to start planning for potential impacts now.

The Inflation Reduction Act (IRA) of 2022 constitutes a major legislative effort to address drug pricing and Medicare expenditure. By now, most industry executives and investors have...

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Topics: Biotechnology, CMS, Govt Agencies, Insurance, Medicare, Pharma, Pharma / Biotech
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