• Home
  • Politics
  • Health
  • World
  • Business
  • Finance
  • Tech
  • More
    • Sports
    • Entertainment
    • Lifestyle
What's Hot

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
Facebook Twitter Instagram
  • Contact
  • Privacy Policy
  • Terms & Conditions
Thursday, May 8
Patriot Now NewsPatriot Now News
  • Home
  • Politics

    Security video shows brazen sexual assault of California woman by homeless man

    October 24, 2023

    Woman makes disturbing discovery after her boyfriend chases away home intruder who stabbed him

    October 24, 2023

    Poll finds Americans overwhelmingly support Israel’s war on Hamas, but younger Americans defend Hamas

    October 24, 2023

    Off-duty pilot charged with 83 counts of attempted murder after allegedly trying to shut off engines midflight on Alaska Airlines

    October 23, 2023

    Leaked audio of Shelia Jackson Lee abusively cursing staffer

    October 22, 2023
  • Health

    Disparities In Cataract Care Are A Sorry Sight

    October 16, 2023

    Vaccine Stocks—Including Pfizer, Moderna, BioNTech And Novavax—Slide Amid Plummeting Demand

    October 16, 2023

    Long-term steroid use should be a last resort

    October 16, 2023

    Rite Aid Files For Bankruptcy With More ‘Underperforming Stores’ To Close

    October 16, 2023

    Who’s Still Dying From Complications Related To Covid-19?

    October 16, 2023
  • World

    New York Democrat Dan Goldman Accuses ‘Conservatives in the South’ of Holding Rallies with ‘Swastikas’

    October 13, 2023

    IDF Ret. Major General Describes Rushing to Save Son, Granddaughter During Hamas Invasion

    October 13, 2023

    Black Lives Matter Group Deletes Tweet Showing Support for Hamas 

    October 13, 2023

    AOC Denounces NYC Rally Cheering Hamas Terrorism: ‘Unacceptable’

    October 13, 2023

    L.A. Prosecutors Call Out Soros-Backed Gascón for Silence on Israel

    October 13, 2023
  • Business

    Trump Announces First Post-Tariff Trade Deal

    May 8, 2025

    Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

    May 7, 2025

    Tyson Foods Announces It Will Bend The Knee To Trump Admin’s New Rules

    May 7, 2025

    Federal Reserve Holds Interest Rates Steady Despite Pressure From Trump

    May 7, 2025

    ‘Wait Them Out’: John Kennedy Tells Larry Kudlow One Lie He Suspects China’s Telling US

    May 7, 2025
  • Finance

    Ending China’s De Minimis Exception Brings 3 Benefits for Americans

    April 17, 2025

    The Trump Tariff Shock Should Push Indonesia to Reform Its Economy

    April 17, 2025

    Tariff Talks an Opportunity to Reinvigorate the Japan-US Alliance

    April 17, 2025

    How China’s Companies Are Responding to the US Trade War

    April 16, 2025

    The US Flip-flop Over H20 Chip Restrictions 

    April 16, 2025
  • Tech

    Cruz Confronts Zuckerberg on Pointless Warning for Child Porn Searches

    February 2, 2024

    FTX Abandons Plans to Relaunch Crypto Exchange, Commits to Full Repayment of Customers and Creditors

    February 2, 2024

    Elon Musk Proposes Tesla Reincorporates in Texas After Delaware Judge Voids Pay Package

    February 2, 2024

    Tesla’s Elon Musk Tops Disney’s Bob Iger as Most Overrated Chief Executive

    February 2, 2024

    Mark Zuckerberg’s Wealth Grew $84 Billion in 2023 as Pedophiles Target Children on Facebook, Instagram

    February 2, 2024
  • More
    • Sports
    • Entertainment
    • Lifestyle
Patriot Now NewsPatriot Now News
Home»Health»NY Times Gets It Wrong On Impact Of Price Controls On New Drugs
Health

NY Times Gets It Wrong On Impact Of Price Controls On New Drugs

September 11, 2023No Comments5 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
NY Times Gets It Wrong On Impact Of Price Controls On New Drugs
Share
Facebook Twitter LinkedIn Pinterest Email

The impact of the Inflation Reduction Act (IRA) on the biopharmaceutical industry is going to be substantial in a number of ways. Already companies are analyzing the strategies for the types of programs that they work on in light of the coming price controls. For example, should less research be done in areas that lead to small molecule drugs (pills) given that such drugs will face price negotiations FOUR years sooner than biologic drugs (given by infusion or intravenously? While far more costly to deliver to patients, biologics offer the potential for higher financial returns due to longer price exclusivity.

(Photo by Drew Angerer/Getty Images)

Getty Images

Similarly, biopharma companies are revising clinical development plans for drugs that have a number of potential uses. In the past, companies would launch a new important drug for a smaller indication, let’s say a rare cancer, while running a much bigger and more costly clinical trial for a large cancer population, say breast cancer. The rationale for doing this is that patients who need the life-saving rare cancer drug can have access to it more quickly than waiting for the larger cancer trials to complete – which could be years later. However, given that the “price negotiation clock” begins to tick when the new drug is first approved for ANY cancer indication, it would behoove companies to wait until all the studies are complete before launching such an important new medicine in order to maximize the return on its investment. Thus, patients with the rare cancer will be penalized.

These are just two of the impacts that the IRA will have on the biopharmaceutical industry. However, the most important impact, in my view, will be on the industry’s ability to deliver new drugs. Unfortunately, an essay in the New York Times essentially pooh-poohs this critical issue. In “The 4 Arguments You Will Hear Against Drug Price Negotiation”, Larry Levitt the executive vice president of KFF makes the following claims.

“The idea that curbs on drug pricing will stifle innovation has long been the pharmaceutical industry’s go-to argument. At some level, the drugmakers may be right: Lower prices mean lower profits, and that will be less attractive to investors. Drug development is a risky business, and the appeal for investors is the big potential payoff fueled by higher prices.

But it’s reasonable to ask how many fewer drugs might get developed and which drugs might those be.

The Congressional Budget Office, the economic referee in legislative debates, estimated that the drug pricing provisions of the I.R.A would result in 13 fewer drugs coming to market in the United States over the next three decades. That’s a very small share of the 1,300 new drugs expected over that period. Some of those forgone drugs might be potential lifesaving treatments, but some might be drugs that offer only marginal health benefits. It’s impossible to know for sure .”

Levitt’s assertions are absurd. It is clear that he has no clue about the fundamentals about biopharma R&D.

Let’s start with some basics. First of all, the biopharmaceutical industry invests 25% of top line sales directly into R&D – a percentage higher than any other industry. Thus, a decrease of $10 billion in sales will result in $2.5 billion less available for R&D. Well, the TV ads that we are now being bombarded with tout that the IRA will result in billions of dollars to be saved by Medicare on drug costs. The Committee for a Responsible Federal Budget has estimated that Medicare will save $300 billion between now and 2031 on prescription drugs.That would translate to a reduction of $75 billion in R&D spend across biopharma.

The industry will have to make substantial R&D cuts to make up for such revenue losses. Jobs will be eliminated, research programs will be cut and companies will abandon certain areas of research. Ironically, companies could begin to decrease efforts in drug discovery programs that would have benefited those over 65 in favor of programs that are more geared to a younger, non-Medicare eligible population. But the most critical aspect of this is that fewer drugs will be discovered and developed over the next decade. Assuming that it takes, on average, $2.5 billion to develop a new drug, $75 billion less for R&D would result in 30 fewer new drugs between now and 2031. To say that there will be 13 fewer drugs in the next decade is at best naïve and, at worst, a gross misrepresentation of reality.

Price controls, unfortunately, are here to stay. Polls show that Americans wanted this. But, make no mistake – the IRA will have a major impact on biopharma R&D and, as a result, fewer important medicines will be available.

(John L. LaMattina is the former president of Pfizer Global R&D and the author of Pharma & Profits – Balancing Innovation, Medicines, and Drug Prices.)

See also  New weight loss drugs could strain Medicare, policy experts warn
Controls drugs Impact Price Times wrong
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Trump Closes Tariff Loophole That Let China Flood America With Knockoff Goods, Drugs

May 2, 2025

Staying ‘For The Children’? You’re Not Wrong

May 2, 2025

Amazon Reportedly Floats Plan To Show Tariff Price Increases To Shoppers — Karoline Leavitt Calls It ‘Hostile’ Move

April 29, 2025

Understanding The Emotional And Physical Impact Of Elder Abuse On Senior Health

April 17, 2025
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Bank Blocks Account for Transgenderism-Critical Parents

July 7, 2023

14 Migrants Found Stacked Like Firewood in SUV in Arizona near Border

March 17, 2023

Twitter Users Slam Matt Gaetz’s Newsmax Hosting Gig For Crossing A ‘New Line’

May 27, 2023

Combating The Growing Rate Of Unnecessary Surgeries

August 2, 2023
Don't Miss

Trump Announces First Post-Tariff Trade Deal

Business May 8, 2025

President Donald Trump announced Thursday the U.S. has reached a trade agreement with the U.K.,…

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025

Electric Vehicle Sales Nosedive As GOP Takes Buzzsaw To Biden’s Mandate

May 7, 2025
About
About

This is your World, Tech, Health, Entertainment and Sports website. We provide the latest breaking news straight from the News industry.

We're social. Connect with us:

Facebook Twitter Instagram Pinterest
Categories
  • Business (4,110)
  • Entertainment (4,220)
  • Finance (3,202)
  • Health (1,938)
  • Lifestyle (1,626)
  • Politics (3,084)
  • Sports (4,036)
  • Tech (2,006)
  • Uncategorized (4)
  • World (3,944)
Our Picks

Left-wing Hollywood Elite Sell Cheap to Avoid L.A.’s ‘Mansion Tax’

June 5, 2023

‘Creed III’ actor Jonathan Majors arrested; allegedly strangled girlfriend

March 26, 2023

More Bodies Pulled From Rio Grande, Including 3-Year-Old, As Migrant Crossings Rise

September 23, 2023
Popular Posts

Trump Announces First Post-Tariff Trade Deal

May 8, 2025

100 Funny Father’s Day Quotes for Hilariously Relatable Humor (and Plenty of Love Too)

May 8, 2025

Top 10 Benefits Of Acupuncture

May 8, 2025
© 2025 Patriotnownews.com - All rights reserved.
  • Contact
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.