A controversial prescription drug pricing bill championed by House Speaker Nancy Pelosi (D-Calif.) would reduce federal spending on Medicare Part D by $345 billion between 2023 and 2029, mostly thanks to a provision that ties prices to what some other countries pay for medicines, according to an analysis released late last week by the Congressional Budget Office.
At the same time, the legislation would have “broad effects” on the pharmaceutical market by “immediately” lowering current and future revenue for drug makers. The agency estimated that a $500 billion to $1 trillion drop in revenue would, in turn, reduce the number of drugs launched by anywhere from eight to 15 over the next decade, since companies could be expected to cut R&D spending.
However, the CBO acknowledged “it is difficult to know in advance the nature of these drugs or to quantify the effect of foregone innovation on health.” The reported that the Food and Drug Administration approves, on average, about 30 new drugs annually, suggesting that about 300 drugs might be approved over the next 10 years.” In other words, 5% fewer drugs than we would currently expect to be approved.
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Yes a number of new drugs will NOT come to market – 8 to 15. However, there is this “The Food and Drug Administration approves, on average, about 30 new drugs annually, suggesting that about 300 drugs might be approved over the next 10 years.” Therefore 5% fewer than the number currently expected to be approved.