Source: United States House of Representatives – Congressman August Pfluger (TX-11)
WASHINGTON, DC — Today, Congressman August Pfluger (TX-11), alongside Senator Bill Cassidy, M.D. (R-LA) and Congressman David Kustoff (TN-08), introduced legislation to protect innovative small biotech manufacturers from the Medicare drug price negotiation program. The Small Biotech Innovation Act will establish a new exemption for small biotech companies based on the amount of revenue they reinvest in research and development.
“The Inflation Reduction Act has proven to fall short in several areas, including its small biotech exemption that disincentivizes companies from investing in R&D and hinders the development of innovative therapies. By tying eligibility to R&D spending, we can better incentivize companies to develop new treatments that will benefit patients nationwide,” said Rep. Pfluger. “The bicameral Small Biotech Innovation Act is a forward-thinking approach that will strengthen America’s leadership in life-saving science by modernizing the small biotech exemption to reward real innovation and research investment, and ultimately protect these innovative small biotech companies.”
“When the federal government stands in the way of developing better care, there’s a problem. The cures developed through small biotech innovation change the future for many patients. Instead of limiting it, we should encourage it,” said Dr. Cassidy.
“It is critical that the United States remains at the forefront of developing new medical technologies, treatments, and drugs,” said Rep. Kustoff. “The Small Biotech Innovation Act will help smaller companies invest in research and development by alleviating the excessive Biden-era regulations placed on them. This legislation is an important step in boosting innovation and helping find new cures for patients across the globe.”
Read the full text of the legislation