The End Of Small Molecule Drugs? Potential Implications Of US Price ‘Negotiation’
The drug pricing provisions in the Build Back Better bill include a number of exemptions and protections – each of which could have interesting consequences for pharmaceutical development.
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US big pharma manufacturers generally delivered sales and earnings growth in the second quarter and reaffirmed guidance despite currency headwinds; US drug pricing legislation could present a tipping pressure point.
US drug pricing legislation that has picked up momentum could stymie R&D investment and curb the revenue tail for some big drugs, industry says, but CEOs also expect they can navigate the challenge.
Lilly’s view of the impact of the pending US drug pricing reform legislation is that it will require rethinking of all its small molecule development programs. That may sound extreme, but it is a logical response to the incentives in the bill. Does that mean the end of the generic drug era?