Small Molecule R&D Parity


Today, drugs average roughly 14 years on the market before facing generic competition. This is enough time to encourage the development of new medicines and provide society with new, inexpensive generics in perpetuity.

Under the IRA, small molecule treatments will face Medicare “negotiation” (price setting) that makes brand medicines functionally generic just 9 years after FDA approval. 

Medicare price setting only 9 years after FDA approval makes new small molecule biotech R&D uninvestable for diseases of aging.

What arbitrary and early Medicare "negotiation" (price setting) of small molecules means for society:

Small molecule biotech R&D will become uninvestable for diseases of aging.
Cancer innovation will be hit particularly hard
Higher costs for society because small molecules pills are cheaper to manufacture, administer, & copy than large molecule shots.


Key Points and FAQs regarding the importance of small molecule innovation:

Why 13 years before Medicare "negotiation" (price setting) is needed to protect innovation.

Read an investor analysis of the Inflation Reduction Act:

Learn what this law will mean for future cures.

How to restore small molecule parity and remain budget neutral

Negotiate more drugs for deeper discounts after 13 years.

Letter to Congress: do more for patients, preserve innovation

1000+ investors, researchers, patients, & innovators urge critical fixes to Senate Rx Bill

The good, bad, and ugly of the Inflation Reduction Act

The IRA's impact on Investment and Innovation

Small Molecule Biopharma Company Testimonials

20+ biopharama executives voice support for small molecule parity

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