RE:RE:RE:RE:RE:RE:Inflation Reduction Act (IRA) boosts biological drugs
March 08, 2024 - The IRA’s Medicare Drug Price Negotiation Program requires the U.S. Department of Health and Human Services (HHS) to negotiate “maximum fair prices” with drug manufacturers for certain brand-name, small molecule drugs covered under Medicare Part D. This allowance begins seven years after a drug’s approval; at nine years, the negotiated drug price kicks in. Gaining the FDA’s green light for additional indications would not extend the small molecule drug’s grace period of protection from negotiations, effectively limiting the drug’s profitability.