The Inflation Reduction Act is Killing Cancer Research

As TAPP has said, the Inflation Reduction Act is a threat to the American pharmaceutical industry and patients everywhere. A recent article from The Wall Street Journal highlights the damage done to an American biotech company, Seagan Inc., as it was forced to shut down a successful cancer treatment because of this legislation.

In 2019, the Food and Drug Administration approved Seagen’s antibody drug-conjugate Padcev to treat locally advanced or metastatic bladder cancer that doesn’t react to other treatments. Research shows that Padcev eliminates or shrinks tumors in 68% of patients when paired with Merck’s immunotherapy blockbuster Keytruda.

This drug can greatly improve the lives of bladder-cancer patients around the country, however it never will because of the price controls imposed in the Inflation Reduction Act. Seagan Inc. leaders “killed the program” because the investment would not be worth it. Why? Because Padcev becomes eligible for price controls in 2030, meaning there would be no economic return on the project.

Drug manufacturers are presented with a pricing proposition that is impossible to reject, due to the severe penalties involved. If they decline the government's pricing terms, they face a substantial excise tax, beginning at 186% and potentially escalating up to 1,900% of the drug's daily revenue.

This is just one example of how this ridiculous piece of legislation is harming Americans everywhere and limiting our country’s innovation. Drug research and development is well worth the cost in order to ensure the best patient access and care for U.S. citizens.

That is why TAPP is calling on Congress to mitigate these negative consequences of the Inflation Reduction Act. Read the full Wall Street article here.