CBO warns of al­most 60 few­er new drugs over three decades with Medicare drug ne­go­ti­a­tions bill

As drug pric­ing leg­is­la­tion be­gins to gain steam on Capi­tol Hill mov­ing in­to the fall, the Con­gres­sion­al Bud­get Of­fice is of­fer­ing an up­dat­ed look at the ef­fects that House Speak­er Nan­cy Pelosi’s drug pric­ing bill, known as HR 3, would have in chill­ing bio­phar­ma R&D over 30 years.

CBO said in a new re­port Thurs­day that its up­dat­ed mod­el used to es­ti­mate the ef­fects of HR 3 would, in part, al­low for wide­spread Medicare ne­go­ti­a­tions on drug prices, lead­ing to a 15% to 25% re­duc­tion in ex­pect­ed re­turns for drugs in the top quin­tile of ex­pect­ed re­turns.

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