Regulatory price controls will also prevent companies from developing new drugs. A study I co-authored estimates that 135 fewer drugs will hit the market by 2039 as a result of the Depreciation Act. Research firm Vital Transformation’s forecast is even bleaker, predicting that the US could lose 139 drugs over the next decade.
Dozens of life science companies have announced cuts to their research and development pipelines as a result of the 2022 law. These announcements came in the form of earnings calls and filings with the Securities and Exchange Commission—where knowingly false statements can expose executives to civil and criminal penalties—so they can avoid being targeted for political suspension.
That’s from Thomas Philipson at the WSJ. It’s worth noting that this kind of academic research has not been effectively refuted, rather than what you often hear when you respond to a bunch of sarcastic comments about Big Pharma and the like.
And to repeat myself: if you are ever tempted to cancel someone, ask yourself “am I canceling those who like strict price control in the pharmacy? After all, they may be causing millions of people to die prematurely.” If you don’t cancel those people – and you shouldn’t – that should increase your circle of tolerance in general.
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