SBTX - Small biotechs warn Biden lawmakers on drug price bill impact on R&D

A group of small biotech companies are warning President Biden, Rep. Nancy Pelosi (D-Calif.), Sen. Chuck Schumer (D.-N.Y.) and other top lawmakers about the negative effects a proposed drug pricing bill would have on their industry. In a letter, they say that government-dictated prices for drugs would severely impact drug discovery and development, including from private funding. Many private equity firms are signatories to the letter. "Dictating the price of drugs covered by Medicare would defund R&D for diseases of aging, including Alzheimer’s, osteoporosis, and cancer. Dictating prices for medicines priced above a certain threshold would defund R&D for rare diseases," the letter reads. "Dictating prices for medicines that generate the most total revenue would defund R&D for our most difficult diseases, since those are the ones that require greater expected revenues to incentivize substantial R&D investment." The letter says that a proposed introduction of a 95% tax on drugs

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Small biotechs warn Biden, lawmakers on drug price bill impact on R&D