Investors sound alarm about pending drug pricing legislation

A quarter of a century ago, the threat of government price controls panicked investors, sparking a flight from the pharma sector that almost strangled the biotech industry in its infancy. Investors and biopharma executives, including many who survived the Clinton healthcare plan 26 years ago, are again warning that proposed drug pricing legislation could kill innovation. In 1994, industry persuaded Congress to drop the idea, but in the last 25 years drug prices have increased, as have public and political pressure to ease burdens on patients and society.

Individuals representing firms that have collectively invested more than $20 billion in biopharmaceutical companies summarized their concerns in a Nov. 13 letter to congressional leaders. ...