
Could U.S. policy clinch China’s grip on biotech?
Health care policy often carries unintended consequences. The Inflation Reduction Act’s “pill penalty,” for example, gave small-molecule drugs — which often take the form of pills — a shorter window of exemption from Medicare price-setting than biologics, which investors say disincentivizes innovation in small-molecule medicines that have the potential to treat cancer, neurological diseases, and more. Another IRA provision limited price-negotiation exemptions only to orphan drugs approved to treat a single rare disease, discouraging follow-on…
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