AstraZeneca Opposes Biden's Plan to Cap Drug Prices

AstraZeneca announced it is suing the US over legislation that will empower the government to negotiate prescription medication costs with pharmaceutical firms, alleging that it has already forced them to curtail investment in rare illnesses and malignancies.

The largest non-US pharmaceutical to file such a lawsuit is the UK firm, which generates 40% of its revenue in the US. It issued a warning that the new regulations will deter manufacturers from funding novel treatments.

The policies are intended to provide the US government the ability to negotiate prices on behalf of Medicare beneficiaries, who are often elderly or handicapped Americans. They were included in the IRA in response to public outcry over excessive prescription prices. By 2031, the modification is anticipated to save Medicare close to $100 billion.

Drug companies have warned that it will hurt sales and impede the development of new treatments.

According to studies, Americans spend more money on prescription pharmaceuticals than those in other countries, particularly those in Europe where pricing talks between pharmaceutical corporations and healthcare systems are already in place. For many pharmaceutical businesses, the US market is the most lucrative.

Astra argues that the IRA will hinder research into rare diseases by citing the US introduction of several cancer medications with orphan indications, which are tiny patient populations with unmet medical needs.

Companies claim that under the new regulations, they would have less time to offer them exclusively. If the IRA had been in place at the time since it was a tiny patient population with a rare illness, Astra would not have been motivated to pursue late-line ovarian cancer approval in the US for its medicine Lynparza.

Small-molecule medications are free from negotiations until nine years after approval, thanks to new IRA regulations. Biologics with more complexity are exempt for 13 years.

The first 10 medications up for negotiation are anticipated to be announced by the US Department of Health and Human Services, which manages the Medicare programme for citizens 65 and over, next week, with pricing taking effect in 2026. Which medications will be on the list is unknown.

(Sources: Bloomberg.com)