Apocalypse or ripple? Ahead of first offers on price, new research predicts IRA impact on R&D will be modest

Ever since the In­fla­tion Re­duc­tion Act was signed in­to law by Pres­i­dent Joe Biden in Au­gust 2022, bio­phar­ma com­pa­nies have lev­eled at­tacks on it, ar­gu­ing the ne­go­ti­a­tions could be noth­ing more than glo­ri­fied price set­ting that will re­duce R&D spend­ing.

But new re­search pub­lished Wednes­day in Na­ture Biotech­nol­o­gy claims the IRA’s hit to over­all in­dus­try rev­enue “will be mod­est,” and it “will not af­fect most top-sell­ing drugs and will not like­ly re­sult in large-scale de­fund­ing” of R&D.

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