Monday, August 25, 2025

Study Debunks Pharmaceutical Industry’s Claims That Medicare Drug Price Negotiation Would Harm R&D

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July 18, 2025

Examine Debunks Pharmaceutical Business’s Claims That Medicare Drug Worth Negotiation Would Hurt R&D

A brand new examine by Bentley College debunks the pharmaceutical business’s claims that the Medicare drug value negotiation legislation would hurt innovation and analysis. Drug analysis and growth (R&D) spending really elevated after it handed regardless of these assertions, in keeping with the evaluation.

The examine evaluated spending at 134 companies and located that R&D spending surged from $211 billion to greater than $247 billion after the legislation handed in 2022, surpassing report ranges.

Different knowledge signifies that fairness investments decreased in 2021, however then stabilized and even grew after 2022. Moreover, drug mergers and acquisitions weren’t negatively impacted, with
pharmaceutical companies partaking in additional acquisitions of beneficial companies between 2022 and 2025.

Pharmaceutical lobbyists have used comparable rhetoric when defending their monopoly pricing energy, most lately when working to cross the so-called ORPHAN Cures Act, which exempts extra medication from Medicare value negotiation and offers drugmakers a large $5 billion windfall.

“This analysis confirms that pharmaceutical companies exaggerated the potential detrimental impacts of the Inflation Discount Act so they may proceed to take advantage of sufferers and preserve the business’s drug pricing monopoly,” stated Richard Fiesta, Govt Director of the Alliance. “Since R&D is clearly thriving at these firms, we should make certain they negotiate in good religion,
shield Medicare drug value negotiation, and work to increase the variety of eligible pharmaceuticals.”

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This was initially revealed within the July 18, 2025 version of the Friday Alert. Learn the total size model and see different Friday Alert editions right here.

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