Inflation act has slashed value of small molecules: Lilly’s Ricks

The Inflation Reduction Act has profoundly altered the economics of drug development, halving the value of most small molecule therapies and creating economic incentives that are not aligned with science or the needs of patients, according to David Ricks, chair and CEO of Eli Lilly.

Lower valuations of small molecules will lead Eli Lilly and Co. (NYSE:LLY) and other pharmas to abandon development programs that would have been viable a month ago, before President Joe Biden signed the IRA into law, Ricks told BioCentury. ...