IRA Drug Pricing Implications Impact Pharma Views On Deal Terms, Valuations

VCs Consider Risk, Have Not Shifted Investment Strategies

03 Mar 2023

Pharma business development executives and venture capital investors shared their thoughts on the Inflation Reduction Act at Biocom’s Global Life Science Partnering and Investor Conference in San Diego.

Businessman offering to sign business contract — Deal terms are shifting as partners consider the IRA's impacts • Source: Shutterstock

Last year’s Inflation Reduction Act, which gives Medicare the ability to negotiate drug prices starting in 2026, already is having an impact on big pharma company deal-making strategies, according to business development executives speaking at the annual Global Life Science Partnering and Investor Conference, hosted by the California biotech industry association Biocom, in San Diego.

The IRA mandates that Medicare begin pricing discussions for the drugs it spends the most on nine years after a small molecule wins US Food and Drug Administration approval and...

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