Price controls curb medical research, drug development

It’s been four years since President Joe Biden signed the Inflation Reduction Act into law.At the time, the IRA’s supporters and critics both acknowledged that the law’s price controls on prescription drugs would deter biotech research investments. They only disagreed about the number of new drugs that would be foregone.The Congressional Budget Office – which I directed under Presidents Bill Clinton and George W. Bush from 1999 to 2002 – offered one of the lower estimates. The agency predicted that the IRA’s price controls would result in 13 fewer drugs reaching the market over three decades.Other forecasters predicted much larger impacts. A pair of University of Chicago economists modeled that the IRA would result in 135 fewer drugs coming to market through 2039.While it is still early, we no longer have to depend exclusively on models and forecasts.

This excerpt comes from the named source. Read the original for the full reporting.