Thank the IRA for Cuts to Critical Drug Research
President Biden’s Inflation Reduction Act is just eight months old. It hasn’t yet slayed inflation. But it’s already gutting drug research and development.
The law gives Medicare the power to impose price controls on certain prescription drugs for the first time. By September, federal officials will select the first 10 medicines subject to price-setting from those covered by the Medicare Part D prescription drug program. The price caps for these drugs will go into effect in January 2026.
In the months leading up to the IRA’s passage, biopharmaceutical innovators and investors warned that price controls would scare away investment in drug research. And they’re being proved right.Read More