How CMS’s IRA methodology will steer medicine

The IRA Medicare drug price negotiations are taking place behind closed doors, and so far none of the drug companies participating in the process have revealed details. While it isn’t possible to predict the outcomes, the key factors most likely to determine the prices in the first cohort and set precedents can be pinpointed. 

The impacts on drug development will be profound, as drug companies and investors will make decisions based on extrapolations from the initial round of negotiated prices. Those decisions will determine what kinds of drugs are available in the future. ...