Leading Venture Capital Group Alarmed By Build Back Better Act’s Prescription Drug Provision
John Stanford, Executive Director of Incubate, a coalition of America's early-stage life sciences investors, issued the following statement on congressional Democrats' passage of the Build Back Better Act
WASHINGTON (November 19, 2021) – Today, John Stanford, Executive Director of Incubate, a coalition of America’s early-stage life sciences investors, issued the following statement on congressional Democrats’ passage of the Build Back Better Act: “As investors in biotechnology and pharmaceuticals, we’re alarmed by the potential consequences of the drug-pricing measure included in the Build Back Better Act, which just passed the House. “The bill would drastically reduce investment in life science research by requiring certain drugs be subject to government price controls. By failing to take this into account, the CBO drastically underestimates the impact this legislation would have. “In order for us to stay in business, enormous but rare successes have to cover the losses. This is how we fuel important long shots that can have an outsized impact on health and society — like new vaccines, treatments for rare diseases, and cures.
“We support efforts to lower drug costs for Americans. So, the out-of-pocket cap for Medicare beneficiaries is a long overdue reform. However, price controls will permanently change the equation for early-stage life science investors, thus dashing the hopes of every patient waiting for new breakthrough medicines. We urge the Senate to consider replacing the House’s misguided bill with policies that will not stall drug development and ensure more benefits reach patients.”
Incubate is a 501(c)(4) organization of venture capital organizations representing the patient, corporate, and investment communities. Our primary aim is to educate policymakers on the role of venture in bringing promising ideas to patients in need.
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