Sign-on letter: Why Fixing the IRA Matters to all of us
Background:
Today, drugs average roughly 14 years on the market before facing generic competition. This is enough time to encourage the development of new medicines and provide society with new, inexpensive generics in perpetuity.
Under the drug pricing provisions of the Inflation Reduction Act, small molecule treatments will face Medicare “negotiation” (price setting) that makes brand medicines functionally generic just 9 years after FDA approval.
Medicare price setting only 9 years after FDA approval makes new small molecule biotech R&D uninvestable for diseases of aging.
Key Takeaways:
Small molecule biotech R&D will become uninvestable for diseases of aging.
Cancer innovation will be hit particularly hard
Higher costs for society because small molecules pills are cheaper to manufacture, administer, & copy than large molecule shots.
