WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) and U.S. Representative August Pfluger (R-TX-11) introduced the Small Biotech Innovation Act to exempt research and development-intensive small biotech manufacturers from the Medicare drug price negotiation program.
“When the federal government stands in the way of developing better care, there’s a problem. The cures developed through small biotech innovation change the future for many patients. Instead of limiting it, we should encourage it,”said Dr. Cassidy.
“The Inflation Reduction Act has proven to fall short in several areas, including its small biotech exemption that disincentivizes companies from investing in R&D and hinders the development of innovative therapies. By tying eligibility to R&D spending, we can better incentivize companies to develop new treatments that will benefit patients nationwide,”said Representative Pfluger. “The bicameral Small Biotech Innovation Act is a forward-thinking approach that will strengthen America’s leadership in life-saving science by modernizing the small biotech exemption to reward real innovation and research investment, and ultimately protect these innovative small biotech companies.”
The Small Biotech Innovation Act would counter the negative impact that the Inflation Reduction Act (IRA) will have on innovation and drug development by providing any small biotech that spends a certain amount of money on research and development with the ability to delay one of their drugs for IRA negotiation for a year. The bill also prohibits any company that is owned by a foreign adversary from being eligible for the delay.
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