Inflation Reduction Act with David Reed, Esq., Reed Business Law
Inflation Reduction Act
November 16, 3:00 – 4:00 p.m. EST
David Reed, Esq., Reed Business Law
More Info to Come Soon!
Americans pay more for prescription medicines than any other country, and the Biden administration has committed to changing that. Through Medicare, the U.S. government already pays for many prescriptions for those age 65 and over. In 2022, Congress passed the Inflation Reduction Act (IRA). It aims to save $25 billion annually on pharmaceutical drugs by 2031. The IRA intends to achieve these savings by requiring marketers of certain drugs to negotiate price reductions with the Centers for Medicare and Medicaid (CMS). Big Pharma argues, and recent lawsuits allege, this requirement violates those markets’ First and Fifth Amendments rights under the U.S. Constitution. If the law is allowed to remain unchanged, they predict a loss of profits that will force pharmaceutical companies to pull back on developing groundbreaking new treatments. This means they will license fewer compounds in development, pay lower up-front fees for those they do license, make fewer success payments for the drugs that move through development, and share smaller royalty percentages on the drugs that do make it to market. We’ll discuss the realistic impacts of the IRA and the lawsuits, and how they will they effect drug developers.