RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Inflation Reduction Act (IRA) boosts biological drugs The IRA’s favorable position is on new large-molecule biologics compared to small-molecule drugs. Provisions allow the former 13 years of immunity from mandated price negotiations, while setting a nine-year exemption period for the latter.
“It’s likely to tilt the M&A surge toward large-molecule drugs. What that could translate to is a very real strategic shift in pipelines toward biologics,” Michael Abrams, managing partner, Numerof & Associates tells Pharm Exec. “The legislation has effectively raised the risk and shortened the timeframe where manufacturers can hope to recruit their investment in any new medicine.”
This may bode well for the perhaps preferred deal targets of today: young startup and emerging clinical-stage companies with promising and differentiated therapies in development.
“The FOMO (fear of missing out) factor it at work for some of the investment community . … There are a lot of considerations in driving this business and obviously there are potential big payouts, too.”