New Research Reveals the Devastating Impact of the Inflation Reduction Act’s “Pill Penalty” on Small Molecule Medicines
New research reveals the harmful impacts of the Inflation Reduction Act’s drug pricing provisions on biopharmaceutical investment, research and development, and patients’ treatment options. Vital Transformation’s research found that aggregate small molecule investments by companies valued at less than $2 billion dropped by 68% since the Inflation Reduction Act was introduced. Further, the study also found a 74% drop in the median size of aggregate investments into indications specifically targeting the Medicare-aged population, with a significant decrease in investments in small molecules compared to large molecules after the IRA was introduced. The peer-reviewed research was first published in the journal Therapeutic Innovation and Regulatory Science.
We Work For Health Applauds Senate Introduction of the EPIC Act
We Work For Health today expressed its support for Senators Thom Tillis (R-NC), Ted Budd (R-NC), Marsha Blackburn (R-TN), James Lankford (R-OK), and Steve Daines (R-MT) for their introduction of the Ensuring Pathways to Innovative Cures (EPIC) Act (S.832) in the U.S. Senate.
We Work For Health Applauds Lawmakers for Re-introducing the Ensuring Pathways to Innovative Cures (EPIC) Act
We Work For Health today applauded the reintroduction of the Ensuring Pathways to Innovative Cures (EPIC) Act (H.R. 1492), a bipartisan bill that addresses the harmful “pill penalty” created by the Inflation Reduction Act (IRA). Introduced by Representatives Greg Murphy (R-NC), Don Davis (D-NC) and Richard Hudson (R-NC), this legislation seeks to correct a provision of the law that disincentivizes the development of small molecule drugs – essential treatments for conditions like heart disease, cancer and mental health disorders.
Second Round of Medicare Drug Price Controls Perpetuates Flawed, Harmful Policy
The Centers for Medicare and Medicaid Services’ (CMS) announcement of 15 new drugs to be subject to price controls under the Inflation Reduction Act (IRA) represents the continuation of a flawed federal policy that has failed to achieve its stated goals and is causing significant health and economic harm.
New Study: Patients Unlikely to See Out-Of-Pocket Drug Savings from the Inflation Reduction Act
New research contradicts promises of savings at the pharmacy counter for Medicare beneficiaries from the Inflation Reduction Act’s (IRA) drug pricing provisions. In fact, the study suggests some patients may pay more. In a research brief commissioned by We Work For Health with analysis performed by the IQVIA Institute for Human Data Science, researchers estimated what patients will actually pay for the 10 Part D medicines chosen by the Centers for Medicare and Medicaid Services for government price controls. The IQVIA Institute calculated how changes in Medicare coverage and other factors will impact patient out-of-pocket costs. The study reveals how unintended consequences of the law could lead to negative impacts for seniors, including increased costs and coverage barriers for certain medications.
We Work For Health Statement on IRA Medicare Price Setting Announcement
We Work For Health Executive Director Dan Leonard issued the following statement in response to the administration’s announcement today regarding the results of the first prescription drugs in Medicare selected for price setting under the Inflation Reduction Act (IRA):
New Study Reinforces That Expansion of IRA Price Setting Would Further Crush Patient Health, Innovative Treatments and U.S. Biopharma Jobs
Further expansion of the Inflation Reduction Act’s (IRA) government-mandated drug pricing policies would translate to a loss of 1.2 million U.S. jobs over the next decade and threaten billions in medical research funding for treatments in many areas of unmet need, according to a new study published today. Since 2021, venture capital investments in biopharma have dropped by 50% and IPOs for biopharma firms by 70% – with an outsized impact on investments targeting cancer treatments. A new study from research firm Vital Transformation warns of further decline in new treatments for patients – particularly seniors – if lawmakers act on plans to expand government price controls.
We Work For Health Statement on Release of CMS’ Prescription Drug Negotiation List
We Work For Health Executive Director Dan Leonard released the following statement in response to the Centers for Medicare and Medicaid Services’ announcement of the first prescription drugs selected for price negotiations under the Inflation Reduction Act (IRA):
New Study Projects Devastating Losses to Drug Development, Jobs and Patient Health in Biopharma Ecosystem
A new study estimates that there would be 237 fewer FDA approvals of new medicines for patients battling cancer, neurological, and rare and infectious diseases over the next decade as well as 1.1 million lost jobs if proposals to expand government-mandated drug pricing policies are implemented. Among the proposals under consideration is allowing Medicare to set prices for specific drugs five years after FDA approval, which would lead to significant lost therapies, innovation and jobs in the biopharma ecosystem at an even more accelerated pace. These proposals are included in the White House’s FY 2024 budget as well as the Senate’s SMART Prices Act.
