New Report Shows that the Inflation Reduction Act Puts Innovation at Risk

A recent report from Vital Transformation estimated and modeled the Inflation Reduction Act’s (IRA) impact on innovation and the ability of the life science industry to create new medicines. The research revealed the IRA’s disastrous impact on the production of new medicines and on the growth of the life science industry in the U.S.

Vital Transformation estimated that because of the IRA’s pricing policies, as many as 139 drugs over the next 10 years are at risk of not being developed at all. Fewer drugs means fewer cures.

The Vital Transformation report found that biologics and small molecule drugs are both harmed by the IRA, resulting in an average reduction of revenue per therapy of $4.9 billion and $4 billion respectively. The loss in revenue will curb investment into new therapies.

The report reinforces what TAPP has been saying for years: Price controls kill innovation and decrease investment in new medicines. Price controls are bad for patients, doctors, and the U.S. economy.

Read the full report here.