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PHAR Quantifies Benefits of Post-Approval R&D of New Medicines

In collaboration with the Pharmaceutical Research and Manufacturers of America (PhRMA), PHAR conducted a real-world analysis in order to calculate the benefits of R&D past initial FDA approval in a subset of previously approved drugs. The recently passed Inflation Reduction Act would allow the government to renegotiate prices for prescription medicines as early as 7 years post approval. PHAR and PhRMA’s study examines how this may impact R&D investment decisions for medicines by investigating the number and timing of additional FDA approvals for new uses or indications for new medicines initially approved by the FDA between 2010 and 2012, and calculating the share of post-approval indications that occurred 7 or more years after each drug’s initial FDA approval. The findings of their analysis speak to the potential impact of recently enacted government policies, which disincentivizes investment and further development of critical post-approval innovations. Read the policy brief here.

November 9, 2022 | Publications

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