WASHINGTON (June 13) -- Today, Incubate launched the Life Science Investment Tracker, a database monitoring changes in investment, research, and drug development in the life sciences since the Inflation Reduction Act became law in August 2022.
Based on data from SEC filings, quarterly earnings reports, and company announcements, the Life Science Investment Tracker lists more than 140 announcements and will continue to be updated.
"In the ongoing debate over the future of U.S. biopharmaceutical leadership, we want to quantify – where possible – the real tradeoffs of recent policy," said Incubate executive director John Stanford. "From the largest pharma companies in the country, to small, unheard of biotechs, we've seen how companies are giving up on drug candidates and shifting their research priorities because of the IRA's small molecule penalty."
Key takeaways from the Life Science Investment Tracker include:
According to GlobalData’s Pharma Intelligence Center Deals database, biotechs received more venture capital than their small molecule counterparts post-IRA.
Fitch, a US rating agency specifically flagged the small molecule penalty would shift investment dollars towards biologics.
Numerous research programs at life sciences companies have been discontinued due to concerns about the IRA's drug-pricing provisions.
Exs: Roche: camonsertinib & belvarafenib
Genentech: Cotellic (cobimetinib)
101 reports from life sciences firms expressed a negative outlook on their research and development pipelines.
The Life Science Investment Tracker allows users to filter data by disease area, drug type, company size, and date of announcement. Users can also explore the database through a keyword search and interactive map.
"The IRA changed the investment calculus for drug development, especially for small molecule drugs," Stanford said. "The Congressional Budget Office estimated that we'd lose six new drugs in the two decades following the implementation of the IRA. In less than two years, at least 20 promising research programs have already closed -- many of which represent multiple drugs that may never be developed and reach patients. It is time we discuss our broken health payer system and ground that dialogue in facts, which must include the sad reality that for a growing number of patient populations the IRA has reduced hope in a new treatment or cure. The good news is we can – and we must – remedy this. "
The proposed Ensuring Pathways to Innovative Cures (EPIC) Act would undo the small molecule penalty, giving small molecule and biologic therapies an equal 13-year reprieve from Medicare price negotiations.
To learn more, visit lifesciencetracker.com.
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About Incubate
Incubate is a 501(c)(4) organization of venture capital firms representing the patient, corporate, and investment communities. Our primary aim is to educate policymakers on the role of venture capital in bringing promising treatments to patients in need.
MEDIA CONTACT:
Lucia Orlandi
(202) 970-9745
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