The Indirect Impacts of the Inflation Reduction Act on Pharmaceutical Pipeline and Portfolio Strategy
The Indirect Impacts of the Inflation Reduction Act on Pharmaceutical Pipeline and Portfolio Strategy
The Indirect Impacts of the
Inflation Reduction Act on
Pharmaceutical Pipeline
and Portfolio Strategy
In August 2022, President Joe Biden signed into law
the Inflation Reduction Act (IRA) aimed at reforming
federal spending toward lowering healthcare costs,
among numerous other aims. Although the future of this
legislation is under question, as will be explored toward
the end of this discussion, the enactment of the IRA
marks the start of an inevitable waterfall of bipartisan
policy action and drug pricing reform, which industry
stakeholders will need to monitor.
At a little more than one
year since the passage of this act, it is likely that every drug
manufacturer understands the tenets of the IRA and its
direct implications for cross-functional decision making.
However, this brief publication seeks to build on that
understanding, by illustrating the indirect implications of
the IRA that manufacturers will need to consider as part of
their new product planning and portfolio strategy.