CER Daily Newsfeed

The Impact of the Inflation Reduction Act On the Economic Lifecycle of a Pharmaceutical Brand

(9/17, Luke Greenwalt, IQVIA) comments “...Under the IRA, manufacturers will now need to accelerate development for multi-indication molecules through indication stacking strategies, meaning that multiple indications will need to be pursued simultaneously rather than sequentially. This compression of research and development spend to occur earlier in the lifespan means that there will be necessary tradeoffs on what gets investigated, when it gets investigated, and how that investigation is funded. The long-term result will be that fewer assets are developed because risk of failure is higher and the intensity of development and funding will have increased.” Full

Lawmakers, Policy Experts Spar Over the Inflation Reduction Act in Senate Hearing

(9/17, Noah Tong, Fierce Healthcare) reports “...IRA skeptics said the law has unintended side effects that will incentivize drug production practices that are less innovative. It's also led to an increase in prior authorization and step therapy delays, they said, and forced the Centers for Medicare & Medicaid Services to implement the Part D Premium Stabilization Demonstration, a short-term fix to premiums that were set to soar.” Full

The Inflation Reduction Act Could Increase Costs and Reduce Access for Millions of Seniors

(9/17, Nicole Longo, PhRMA) comments “...89% of insurers and PBMs plan to reduce access to medicines in Medicare Part D through tools like step therapy and prior authorization or by excluding medicines from formularies. 78% of insurers plan to decrease the number of therapeutic options in classes with medicines selected for price setting. Looking at the number of Medicare patients taking the 10 medicines selected for price setting today, and those taking a therapeutic alternative, more than 10 million Medicare patients could face more access barriers.” Full