Report from Incubate Policy Lab and Charles River Associates Finds Congressional Budget Office Underestimates Negative Impact of Drug Pricing Legislation
3, would have a far greater negative impact than estimated by the Congressional Budget Office.
Washington, D.C., Oct. 20, 2021 (GLOBE NEWSWIRE) -- Today, Incubate Policy Lab and Charles River Associates published a report demonstrating that a leading proposal that would allow the federal government to set drug prices, H.R. 3, would have a far greater negative impact than estimated by the Congressional Budget Office.
"We've said over and over that government price-setting would decimate the early-stage life science sector," said John Stanford, Incubate's executive director. "Our new report captures what the Congressional Budget Office failed to incorporate: investor behavior. Price controls would drive away virtually every investor that's willing to shoulder the risk of biomedical research and development. In addition to misinforming Congress, the CBO analysis promotes a policy that leaves today's patients hopeless for the medicines of tomorrow."
The report is based on a roundtable discussion with several economists, academics, venture capitalists, life science investors, and biotech industry experts. They reach a clear consensus that government price controls on prescription drugs would disproportionately harm patients with rare diseases and cancers; reduce life sciences investment; decrease access to new medicines; shrink the U.S. pharmaceutical sector; and end America's status as a global leader in developing transformational medicines.
"The United States is a world leader in drug development due to a competitive market that controls costs through private negotiation. Federalizing drug prices would have far-reaching consequences for patients, public health, and the job market," said Kirsten Axelsen, senior advisor at Charles River Associates. "We do not believe that policymakers have been given an adequate assessment of the risks associated with this type of policy change. We hope this report can help change that."
About Incubate Policy Lab: Incubate is a 501(c)(4) organization representing the patient, corporate, and investment communities whose aim is to educate policymakers on the role of venture in bringing promising ideas to patients in need. The advocacy organization recently launched its research arm, Incubate Policy Lab, which explores various policy initiatives and potential effects on the biopharmaceutical industry.
About Charles River Associates: Charles River Associates is a leading global consulting firm specializing in economic, financial, and management consulting services. CRA advises clients on economic and financial matters pertaining to litigation and regulatory proceedings, and guides corporations through critical business strategy and performance-related issues. Since 1965, clients have engaged CRA for its unique combination of functional expertise and industry knowledge, and for its objective solutions to complex problems. Headquartered in Boston, CRA has offices throughout the world. Detailed information about Charles River Associates, a registered trade name of CRA International, Inc., is available at www.crai.com. Follow us on LinkedIn, Twitter, and Facebook.
Maggie Servais (202) 471-4228 ext. 117 [email protected]