The IRA is coming into focus
Adverse consequences, opportunities — and possible legal challenges — becoming clearer
The Inflation Reduction Act’s price-setting pathway is starting to come into focus, as are the ways it is reshaping the commercial landscape for drug development. Every company developing medicines for the U.S. market — no matter how small, and regardless of the stage of development — must consider how they will adapt.
The legislators who crafted and ratified the law are confident big pharma can easily absorb its costs. It is becoming increasingly clear to biotech industry leaders, however, that while large companies will adjust, and some biotechs will find ways to soften the blows, the IRA will punish many of the small companies that are the heart of biomedical innovation. And it will upend business models that have led to transformational medicines. ...