WASHINGTON, DC (August 3rd, 2022) – Writing for Forbes, Wayne Winegarden from the Pacific Research Institute makes it clear that the drug price control provision in the Inflation Reduction Act would be devastating for pharmaceutical innovation. By arbitrarily capping costs of some brand-name biologics, this bill would make it nearly impossible for biosimilar manufacturers to recoup the large investments required to make a biosimilar and cause a chilling effect in biosimilar development, driving up costs for patient and employer-sponsored health plans. Winegarden correctly notes that biosimilar competition generates significant savings already (more than $12 billion since 2015) and that stifling this competition through price controls will counteract any potential savings the Inflation Reduction Act might create.
“Contrary to its name, the Inflation Reduction Act would increase prescription costs by stifling biosimilar competition and innovation,” said Craig Burton, Executive Director of the Biosimilars Council. “The price control proposals would actively harm millions of patients by rewarding brand drug manufacturers with a perpetual monopoly. Congress should reject this proposal and instead support solutions that will sustainably lower drug prices by encouraging generic and biosimilar adoption.”