Trenton, July 29, 2022 ― Dean J. Paranicas, President and Chief Executive Officer of the HealthCare Institute of New Jersey, released the following statement concerning recent discussions in Washington on potential drug pricing legislation:
“A new report by the consultancy Vital Transformation on the impact that price control policies under discussion in Washington would have on the future of medical innovation confirms the potentially devastating consequences for vaccines, treatments and cures for some of the world’s most dreaded diseases.
The study concluded that, if the price controls proposed in the newly renamed “Inflation Reduction Act” had been imposed in 2012, only 6 of 110 drugs developed by the 12 companies most likely to be impacted by these price controls would have been developed and available to vaccinate, treat or cure patients. Those companies, which invested over $588 billion on R&D during that period, would have seen net earnings decrease by 70%, essentially eliminating their ability to have discovered those new medicines, according to the study.
In addition to the potential impact to patients, the report also warns of significant likely job losses over the next decade as a result of these price controls – more than 590,000 American biopharma-supported jobs, together with a substantial diminution in R&D investments.
We stand with New Jersey’s Congressional Delegation as they seek to lower health care costs for patients and pledge to continue working to do so in ways that advance global health. Unfortunately, as this study compellingly demonstrates, current proposals under discussion will not accomplish these goals.”