A new study estimates that there would be more than 235 fewer FDA approvals of new medicines for patients battling cancer, neurological, and rare and infectious diseases over the next decade as well as 15,714 lost jobs for Georgia workers if proposals to expand federal government-mandated drug pricing policies are implemented. Among the proposals under consideration is allowing Medicare to set prices for specific drugs five years after FDA approval, which would lead to significant lost therapies, innovation, and jobs in the biopharma ecosystem at an even more accelerated pace. These proposals are included in the Executive Branch’s FY 2024 budget as well as the Senate’s SMART Prices Act.
Research firm Vital Transformation modeled the impacts of expanded federal government-mandated drug pricing policies at five years following FDA approval. The study analyzed the reduction of new drug approvals and loss of jobs if these policies or others similar to them were enacted into law.
“Advocates for Responsible Care (ARxC) advocates for patient access to their medications and treatments. Our 43-member coalition is very concerned that the proposed government-mandated drug policies will especially hurt chronic illness patients by impeding the development of and investment in new medicines. The New Vital Transformation and BIO separate study shows patients could lose access to at least 40% of new medicines that seriously ill patients rely on to be more productive and to extend their lives, despite their poor prognosis. It’s critical that Georgia’s Congressional delegation takes the time to fully understand the patient impact and unintended consequences of this policy,” said Dorothy Leone-Glasser of ARxC.
“At a time when the biopharmaceutical industry is just beginning to experience the negative impacts of the Inflation Reduction Act’s government-mandated drug pricing policy, any new proposal only adds fuel to the fire and…
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