Report from Incubate Policy Lab and Charles River Associates Finds Price Controls Would Decrease Investment in Critical Therapeutic Areas
Washington, D.C., Nov. 18, 2021 (GLOBE NEWSWIRE) — Today, Incubate Policy Lab and Charles River Associates published a report detailing how investment into therapies for rare diseases and oncology will plummet if Congress enacts price controls.
“Despite pleas from the life-science investment community, Congress is moving forward with government-mandated prices for medicines,” said John Stanford, Incubate’s executive director. “Our report makes clear that under price controls, those who fund the development of cutting-edge medicines will steer their dollars to safer investment opportunities.”
The report is based on a series of interviews with those working in the pharmaceutical industry and early stage life science investors. All participants agreed that price controls would drive investment dollars away from therapeutic areas that have proven particularly risky — such as cell & gene therapy, Alzheimer’s disease, oncology, and rare diseases — and toward areas with lower development costs and more predictable returns.
They also agreed that reference pricing — both international and domestic — would have the significant negative impact, likely leading pharmaceutical companies to delay or not launch their new medicines in the United States. It would also limit investment in the most transformative innovations, reducing patient access.
“Researchers are working on new and desperately needed therapies for Alzheimer’s, ALS, HIV, and countless rare diseases,” said Stanford. “I urge policymakers to listen to those who fund this research — and rethink their plans to implement price controls.”
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.
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