(The Center Square) – A study by We Work For Health and Vital Transformation organizations estimates fewer FDA approvals of new medicine and more than 50,000 lost jobs for Texans if proposed federal government-mandated drug pricing policies are implemented.
The study estimates there would be 237 fewer FDA approvals of medicines for patients battling cancer and rare, infectious diseases and 54,120 lost jobs for Texans over the next decade.
These proposals are included in the White House's FY 2024 budget as well as the Senate's SMART Prices Act. One proposal under consideration is allowing Medicare to set prices for specific drugs five years after FDA approval.
The study shows a total of 1.1 million jobs lost because of the proposed federal drug policies.
“Research firm Vital Transformation modeled the impacts of expanded federal government-mandated drug pricing policies at five years following FDA approval,” according to a June 15 news release. “The study analyzed the reduction of new drug approvals and loss of jobs if these policies or others similar to them were enacted into law.”
According to the study, approximately 70% of current drug therapies identified for price setting may not have been developed had the pricing provisions been in place prior to their development.
“Impacts will be felt most heavily in many areas of unmet need, including in rare disease, oncology, neurology, and infectious disease,” according to the study.
Both organizations are hopeful for small molecule research incentives to be preserved.
“At a time when the biopharmaceutical industry is just beginning to experience the negative impacts of the Inflation Reduction Act's government-mandated drug pricing policy, any new proposal only adds fuel to the fire and reinforces a deeply misguided and flawed approach,” said Tom Kowalski, national co-chair of We Work For Health. “This latest study demonstrates just how bad the damage could be should these plans be implemented.”
To view the research for this study, click here.