Study of drug pricing policy proposals projects 14k Wisconsin jobs lost
According to a recent press release, a new study estimates that there would be fewer FDA approvals of new medicines for patients battling cancer, neurological, and rare and infectious diseases over the next decade as well as up to 14,000 lost jobs for Wisconsin workers if proposals to expand federal government-mandated drug pricing policies are implemented.
The proposals are included in the executive branch’s FY 2024 budget as well as the Senate’s SMART Prices Act. Among those under consideration is one allowing Medicare to set prices for specific drugs five years after FDA approval.
Research firm Vital Transformation modeled the impacts of expanded federal government-mandated drug pricing policies at five years following FDA approval. The study analyzed the reduction of new drug approvals and loss of jobs if these policies or others like them were enacted into law.
Key study highlights included:
- The loss of more than 80 currently available therapies of 121 identified for price setting — approximately 70%;
- More than 235 fewer FDA approvals of new medicines or new uses over a 10-year period; and
- The loss of 1,900–3,000 direct biopharmaceutical industry jobs, with a total loss of up to 14,000 jobs in Wisconsin and the loss of ecosystem investments into 50 different therapeutic indications, including $456.5 million in cancer investments in the state.