How drugs selected for price reductions under the Inflation Reduction Act (IRA) contribute to corporate revenue (IMAGE)
Caption
Public companies with products subject to price negotiation in first two years of the IRA were more profitable than comparable companies in the S&P500. From 2019-23, US sales of these drugs provided 10.6% of all revenue, less than earnings or cash distributions to shareholders, with margins 2.3-4.4 times greater than average investment in drug development. Results suggest reducing revenue under the IRA would not limit funds for operations or normal returns on investment.
Credit
Bentley University, Center for Integration of Science and Industry
Usage Restrictions
Credit must be given to the creator.
License
CC BY