A recent Wall Street Journal editorial cited our Health Affairs study in its analysis of U.S. drug pricing policy and the innovation effects of Medicare price controls.
Our research shows that follow-on oncology drugs are both common and clinically meaningful, with nearly 60 percent of follow-on approvals targeting earlier disease stages than the original indication—settings where treatment success is often more likely. The study highlights how the Inflation Reduction Act’s shortened exclusivity period may alter development incentives, particularly for small-molecule drugs that rely on sequential, indication-by-indication expansion.
Building on these findings, the Wall Street Journal editorial argues that extending foreign-style price controls through policies such as most-favored-nation pricing risks further weakening incentives for pharmaceutical innovation. The editorial emphasizes that government-imposed price ceilings may reduce investment in follow-on and incremental advances, delay access to new therapies, and shift innovative activity abroad, while delivering limited direct savings to patients. Together, the evidence underscores the importance of preserving development incentives that support both affordability and continued therapeutic progress.
Read the full editorial here.