The Senate Finance Committee held a hearing yesterday on “prescription drug price inflation,” during which witnesses testified that price controls would limit biotechnology innovation in the United States.
According to Ranking Committee Member Sen. Mike Crapo (R-ID), the medication price restrictions in the House Build Back Better proposal would result in fewer pharmaceuticals and a “competitive edge” for China.
Douglas Holtz-Eakin, President of the American Action Forum, rejected the idea that price controls can combat inflation, saying drug prices have been stable and adding: “Drug prices contribute only 1.4% of price increases in the CPI.”
Stephen J. Ezell, VP, Global Innovation Policy Information Technology and Innovation Foundation said: “Life sciences companies depend on revenues earned from one generation of innovation to finance investment toward the next generation of innovation. Yet drug price controls constrain the ability to earn those revenues”
Video of the hearing
Below is a brief video that the Biotechnology Innovation Organization (BIO) made from key moments in the hearing. Read BIO’s coverage here.