Incubate Responds to Finalization of GLOBE Drug Pricing Model
WASHINGTON (September 30) -- Today, the Centers for Medicare & Medicaid Services moved to finalize the Global Benchmark for Efficient Drug Pricing (GLOBE) model.
Incubate's executive director, John Stanford, issued the following statement:
"Incubate opposes the GLOBE demonstration model because it moves Medicare further down the path toward government-imposed drug pricing tied to foreign government price controls.
"Developing a new medicine takes years of research, billions of dollars in investment, and a willingness to accept extraordinary risk. Early-stage biotechnology companies depend on investors who are willing to finance scientific breakthroughs long before there is any guarantee of success.
"Most Favored Nation-style pricing fundamentally changes that investment calculus. When the government ties the value of a breakthrough medicine to the artificially low prices set by foreign governments, it becomes more difficult to attract the private capital needed to develop tomorrow's cures. The result is fewer investments, fewer new companies, and ultimately fewer treatments reaching patients.
"America became the world's leader in biotechnology because it built a policy environment that rewarded innovation and attracted private capital. Policies like GLOBE and its companion demonstration, GUARD, undermine that foundation and discourage investment in the next generation of medical breakthroughs. Incubate remains committed to advocating for policies that encourage scientific risk-taking and ensure the United States remains the global leader in biotechnology."
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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:
Katie Lu
(202) 970-9743
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