IRA Implications Will Factor Significantly In Deal Strategy In 2023

While consultancy PwC generally is bullish about increased deal-making and M&A activity by the biopharmaceutical sector in 2023, in a recent report it notes that the drug-pricing implications of last year’s Inflation Reduction Act will be a critical factor in how companies set up their business development strategies.

In its Next in Pharma: Thriving in 2023 report issued on 5 January, PwC said industry firms are making initial impact assessments of the legislation, which will authorize the Centers for Medicare and Medicaid Services to set prices for the drugs its spends the most on in Medicare Part D starting in 2026 and by Medicare Part B in 2028. (Also see "US Pricing Reform Puts Cancer Drug Innovation At Risk, Drug Leaders Warn" - Scrip, 2 November, 2022.) Merck & Co., Inc