{"id":2026633,"date":"2023-09-09T08:42:01","date_gmt":"2023-09-09T12:42:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-drug-price-negotiations-risk-shortages-of-key-class-of-drugs-industry-warns\/"},"modified":"2023-09-09T08:47:30","modified_gmt":"2023-09-09T12:47:30","slug":"biden-drug-price-negotiations-risk-shortages-of-key-class-of-drugs-industry-warns","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-drug-price-negotiations-risk-shortages-of-key-class-of-drugs-industry-warns\/","title":{"rendered":"Industry warns that Biden&#8217;s drug price negotiations may lead to shortages of vital drugs."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-drug-price-negotiations-risk-shortages-of-key-class-of-drugs-industry-warns%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2026633&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Pharmaceutical Industry Experts Warn of Growing\u200b Medication Shortages<\/h2>\n<p>Pharmaceutical industry experts are\u2062 raising concerns about the potential impact of the Medicare Drug \u200cPrice Negotiation \u200cProgram on the availability\u2064 of common small \u200dmolecule medications. \u2062These\u2063 experts argue that the program, created by the Inflation Reduction Act, could \u2062lead \u2064to shortages of medications \u2064like aspirin and antibiotics.<\/p>\n<p>Last week, \u2062the \u200dCenters \u2064for Medicare &#038;\u200b Medicaid Services (CMS) \u200dannounced the 10 medications that will be subject to maximum fair price negotiation\u200d with pharmaceutical companies for Part D Medicare coverage. This negotiation process, set to take effect in 2026, is part \u200dof President Joe Biden&#8217;s domestic \u2063legislation bill.<\/p>\n<h3>Impact on Medication Prices and Investment<\/h3>\n<p>Under the\u200c new \u2064legislation, the secretary of health and human \u200dservices will\u2063 have the authority to negotiate prices for medications that pose the greatest cost\u2062 to\u200c the Medicare program. Noncompliance with the\u200c negotiated prices could \u2062result in penalties \u2063of up to 95% of profits for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/buttigiegs-former-firm-shells-out-573-million-to-evade-lawsuits-over-role-in-opioid-crisis\/\" title=\"Buttigieg\u2019s Former Firm Shells Out 3 Million to Evade Lawsuits Over Role in Opioid Crisis\">drug manufacturers<\/a>.<\/p>\n<p>While the Biden administration claims that \u200cthese negotiations \u200bwill \u200blead to savings for Medicare, experts caution that price \u200bcontrols \u200dmay discourage investment in\u200c pharmaceuticals due to limited profits. A study conducted by the University of Chicago estimates that price controls could reduce research\u200d and development investment by $663\u2064 billion through 2039, potentially \u200dresulting in the loss of up\u200b to 135 new drugs.<\/p>\n<p>However, industry experts \u200bargue that the impact of reduced investment will <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-drug-price-negotiations-risk-shortages-of-key-class-of-drugs-industry-warns\/\" title=\"Industry warns that Biden's drug price negotiations may lead to shortages of vital drugs.\">primarily affect small molecule medications<\/a>. Small molecule drugs, such as aspirin, allergy medications, and antibiotics, are typically administered by patients at home and \u200dhave a smaller chemical\u200c makeup. \u200dIn contrast, \u200bbiologics, which are derived \u2062from living cells, are more \u2063complex to manufacture and often require \u2062administration \u2063at healthcare\u2063 facilities.<\/p>\n<h3>Concerns about Incentives and Supply<\/h3>\n<p>The Inflation Reduction Act allows the CMS\u2062 to impose price \u2064controls on\u2062 biologic drugs after\u2063 13 years on the \u200cmarket, while\u2064 small molecules only have\u2062 nine years before becoming \u2063eligible for negotiation. This discrepancy may discourage investment \u200cin \u2062small molecule medications\u200b and shift\u200b resources towards biologics.<\/p>\n<p>Experts argue that this emphasis on biologics could negatively impact market resiliency during emergencies,\u2062 such as natural disasters \u2063or pandemics.\u2064 With fewer manufacturing facilities capable of producing large quantities of small molecule medications, the supply may\u200c be insufficient to meet \u2062the \u200cdemand.<\/p>\n<h3>Disincentivizing Small\u200b Molecule Innovation<\/h3>\n<p>According to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-atf-nominee-has-long-history-of-anti-gun-statements\/\" title=\"Biden ATF Nominee Has Long History of Anti-Gun Statements\">industry representatives<\/a>, the \u2064Inflation Reduction Act&#8217;s differential\u200d treatment \u2064of biologics and small molecules reflects a misunderstanding of the market. They\u2064 argue\u2062 that while biologics may hold promise for curative therapies, innovation in treatments\u200c has \u2063focused \u200con\u2063 making existing medications more accessible through \u200cpill forms.<\/p>\n<p>Despite concerns raised by\u2063 experts, the \u200cCMS maintains that there is no evidence \u200clinking\u2064 the price exclusivity differential \u2064to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/these-four-major-medication-shortages-could-affect-you\/\" title=\"These Four Major Medication Shortages Could Affect You\">medication shortages<\/a>. President Biden has accused &#8220;MAGA Republicans&#8221; \u200dof seeking to eliminate the \u2062drug\u200b price negotiation program, but industry representatives emphasize the need\u2063 for both small molecules and biologics to have 13\u2063 years of price exclusivity.<\/p>\n<p>It remains \u2064to be \u200cseen how \u2064the\u200d Medicare\u2064 Drug Price Negotiation Program will impact medication availability and innovation \u2064in the \u2063<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/congressional-measure-calls-out-pharmaceutical-industrys-reliance-on-china\/\" title=\"Congressional Measure Calls Out Pharmaceutical Industry\u2019s Reliance on China\">pharmaceutical industry<\/a>.<\/p>\n<p><a href=\"https:\/\/www.washingtonexaminer.com\/\">Click here<\/a> to read more from the Washington Examiner.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pharmaceutical industry experts warn that the Medicare Drug Price Negotiation Program, established by the Inflation Reduction Act, will worsen shortages of common medications like aspirin and antibiotics. The Centers for Medicare &amp; Medicaid Services recently disclosed the ten medications it will prioritize for fair pricing.<\/p>\n","protected":false},"author":1,"featured_media":2026634,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2026633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2026633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2026633"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2026633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2026634"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2026633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2026633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2026633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}