Inflation Reduction Act

ATI Advisory follows pharmaceutical innovation among 19 biopharma companies that have had or are likely to have a drug selected for Medicare negotiation. In this report, we contextualize the two-year anniversary of the first negotiation cycle within a dynamic macroeconomic, policy, and political environment that has reshaped industry decision-making.

ATI Advisory follows pharmaceutical innovation among 19 biopharma companies that have had or are likely to have a drug selected for Medicare negotiation. In our wrap-up of 2023, we concluded that there were few signs of changes in behavior in response to the Inflation Reduction Act (IRA). In this report, we continue our evaluation through the end of 2024, with the additional context of the 2025 implementation of the Part D redesign as well as recent political, regulatory, and economic uncertainties.

This research report explores R&D investment and decision-making by the pharmaceutical industry during the first half of 2024. To counteract impending losses of exclusivity of drugs that are established revenue drivers, companies have been investing heavily in R&D, doubling down on their most promising assets and candidates, and taking on more development risk earlier in the product lifecycle. While these trends weren’t necessarily prompted by the Inflation Reduction Act (IRA), efforts to optimize investments and development plans fall in line with incentives created by the law and may be amplified by it. Read the brief for more insights.