Biotech investors bracing for Inflation Reduction Act’s impacts

Investors assessing the Inflation Reduction Act are weighing warnings from pharma CEOs that the law will dramatically reduce incentives for small molecule drug development and precision medicine against hopes that a combination of restrained execution, loopholes and legislative fixes will diminish the law’s impact.

It will take years to fully understand how the law will be put into practice. Crystal balls will be clouded by relentless attempts by the drug industry and its critics to influence implementation of the IRA, persuade Congress to modify it and courts to overturn or require more stringent application of the law’s price-setting provisions. ...