EDITORIAL: The side effects of drug price controls | The Review Journal | 02/17/23

“Academic literature estimates the effect of future drug revenues on R&D spending and finds that, on average, a 1 percent reduction in revenue leads to a 1.5 percent reduction in R&D activity,” a 2021 paper from University of Chicago’s Tomas Philipson and Troy Durie found.

Applying that the Inflation Reduction Act, they project it will decrease R&D spending by “about 18.5 percent, amounting to $663 billion” by 2039. They project this will lead to “135 fewer new drugs.”

Read the full article here.


Posted on

February 17, 2023

Scroll to Top