Horizon’s research into the Inflation Reduction Act’s impact on the investment into researching and developing new treatments was cited in an op-ed published in BioSpace.
When a product is selected for mandatory negotiation through the IRA, the opportunity to recoup development costs is truncated, reducing the expected return on investment and ultimately, the incentives for innovation. It’s no surprise then that, four months into implementation of the IRA, the consulting firm Horizon Government Affairs reported that at least 24 companies had announced they were curtailing drug development because of the legislation.