| Hello John, Imagine a world where cures for cancer, Alzheimer’s, or rare genetic disorders never come to light — not because the science isn’t there, but because the incentive to pursue it has been stripped away. This scenario is becoming a reality under Medicare’s price negotiation provisions enacted as part of Joe Biden’s misnamed Inflation Reduction Act. Let me break down how this hurts health care innovation and how we can get things back on track. A chilling effect on innovation: Developing a new drug takes an average of 10 years and $2.3 billion, according to a 2024 Deloitte study. And only 12% of drugs in clinical trials ever gain approval, meaning revenue from successful drugs funds not only their own creation but also offsets losses from failed ones. If companies lose the ability to price established drugs appropriately, they lose the resources to reinvest in R&D. The impact is already visible: - Bristol Myers Squibb has stopped research on promising cancer treatments.
- Eli Lilly is scaling back blood cancer drug development.
- Alnylam halted work on a rare eye disorder drug.
Major players like AstraZeneca are reconsidering their pipelines, and biotech bankruptcies are rising. These setbacks aren’t hypothetical — they are happening now, and patients will bear the cost. Fewer treatments, less progress: The IRA cuts into the funding needed for risky yet groundbreaking drug development. It also reduces incentives to find new uses for existing drugs. For example, rituximab (Rituxan) was initially approved for non-Hodgkin’s lymphoma but later approved for a rare blood vessel disorder after further research. Under the IRA, pursuing such additional uses is penalized, meaning fewer breakthrough treatments will emerge. The human cost: Experts estimate the IRA could lead to 135 fewer lifesaving drugs by 2039, prolonging patient suffering and missing opportunities to improve lives. Economist Tom Phillipson estimates that this lack of innovation could result in $18 trillion in health losses over the next 15 years. Are the savings worth sacrificing breakthrough cures for ALS, cancer, or Parkinson’s? For many, the answer is clear: no. The risk to future innovations: Proponents of the IRA claim it will save Medicare billions, but history shows that price controls stifle innovation. In the European Union, where such controls are common, patients have less access to new drugs. Since 2012, 93% of new cancer treatments are available in the U.S., compared to just: - 71% in Germany
- 64% in France
- 59% in Canada
By reducing incentives for developing new drugs, the IRA risks creating similar delays and access issues in the U.S., threatening the country’s leadership in global health care innovation. What you can do We’re at a critical point: Supporting innovation means protecting policies that allow pharmaceutical companies to recover costs and reinvest in lifesaving research. Congress must reverse the IRA’s harmful provisions before they jeopardize future medical breakthroughs. You can help make this change. Sign our petition today to oppose Medicare’s price controls and support the right to research and innovate. Your voice sends a clear message: Policies that harm patients and stifle discoveries must end. | 
