Drug Price Controls: What Are The Unintended Consequences To Innovation?

This session critically examined the far-reaching ripple effects of drug price controls, focusing on recent US policy changes such as the Inflation Reduction Act (IRA) and President Trump's Executive Order implementing International Reference Pricing.

Given that the United States generates approximately 70% of global pharmaceutical revenues, the discussion prioritized the significant implications of drug price setting on research and development (R&D) investment and innovation.

Key topics covered during the session included:

• The unintended consequences of setting drug prices too low.
• The challenges in aligning policy with innovation incentives.
• The reasoning behind International Reference Pricing and potential alternatives.
• Early insights from data regarding the IRA's impact.

The opening plenary at ISPOR 2025 sparked a crucial conversation about the future of drug pricing, underscoring the vital stakes for patients, payers, and the pharmaceutical industry.