Reimagining the Medicine Industry in New Jersey

The Impact of Legislation on Drug Research in New Jersey

New Jersey’s Medical Industry

New Jersey is known as the “medicine chest to the world” for hosting 14 of the largest biopharmaceutical companies and 12 major medical technology firms.

The Legislation Issue

The 2022 Inflation Reduction Act poses a threat to drug research in New Jersey by penalizing a broad category of drugs, affecting patients. A legislative fix is in progress but requires support from New Jersey legislators like Democratic Rep. Josh Gottheimer.

Different Treatment for Drugs

The IRA distinguishes between two types of medicines: small molecule drugs and biologics. Small-molecule drugs are commonly found in pharmacies, while biologics are derived from organic material and typically require injection or infusion.

The Impact of Legislation

The IRA allows government price-setting on certain Medicare-covered drugs, with a grace period to recover investments. However, there’s a discrepancy in the grace periods for biologics and small-molecule drugs, leading to a shift in research funds towards biologics.

Effects on Patients and Healthcare

The penalty favors more expensive biologics, increasing healthcare costs for patients. Additionally, a reduction in small-molecule research could limit affordable treatment options in the future.

Long-Term Consequences

A University of Chicago study predicts a loss of small-molecule medicines and life-years if the penalty continues. Public spending on drugs is expected to rise as biologics become more prevalent.

Impact on New Jersey

Shifts in research funds away from small-molecule drugs in New Jersey could harm the economy, leading to decreased tax revenue and job opportunities.

The Solution

The EPIC Act aims to address the unintended consequences of the IRA by providing equal treatment for biologics and small-molecule drugs, ensuring access to innovative and affordable medications.

Call to Action

We urge Rep. Gottheimer and fellow legislators to support the EPIC Act for the betterment of New Jersey’s medical industry and the future of healthcare in America.

Read More of this Story at www.northjersey.com – 2024-03-29 08:27:13

EPIC Act Grants Exemptions to Biologics and Small-Molecule Drugs