New ‘SMART’ Prices Act Would Destroy the Medicine Research Industry

Expanding on the Inflation Reduction Act of last year, the SMART Prices Act would aim to cap the prices of medicine. This may sound helpful, however, any short-term benefits would be overshadowed quickly by long-term damage. Capping the price of any medicine limits research and development options significantly. This decreases the likelihood of drug improvement and the potential finding of cures.

Drug research is a long and expensive process, which is why the SMART Act is so detrimental. Companies are forced to limit research because of insufficient funds and a lack of certainty that price caps create. 

Similar legislation has already been harming the pharmaceutical industry. Several companies have announced the slowing of research because of the Inflation Reduction Act. The SMART Act goes even further and would have an even greater impact. In fact, a study from Vital Transformation shows, if the bill is passed, the Food and Drug Administration would approve approximately 230 fewer new treatments than it normally does over a decade, including important areas of treatment like rare disease and neurology. 

On top of the harm the SMART Act would cause research, it would also result in the loss of hundreds of thousands of jobs in the biopharmaceutical industry. Labs and research centers would close as well, limiting patient access to care even more.

This legislation would decrease patient access, decrease drug research, and decrease the number of important jobs in the medical economy. That is why TAPP calls on Congress to abandon the deceptively named SMART Act and explore better ways to provide affordable medicines.