For Some Biotechs, IRA Remains Intangible – For Now

Some biotech companies could feel consequences of Medicare drug price negotiation policies under the Inflation Reduction Act (IRA) sooner than they might expect, as big pharmas adjust their R&D investment and business development strategies. Smaller companies could also face disadvantages compared to large, cash-rich companies when it comes to fronting the cost of a broad R&D program to study a drug in multiple indications at once, a strategy some companies might deploy to reap financial rewards faster in an environment marked by shorter commercial lifespans for drugs.

Nonetheless, biotech executives at the BIO CEO & Investor conference in New York Feb. 6-7 had a mixed view of potential threats that US Medicare drug price negotiations might pose....