According to a report commissioned by Biocom and the California Life Sciences Association, drug price control legislation now in Congress would cut the supply of new drugs from state's large life science sector by up to 88%, as well as elimiante 80,000 R&D jobs nationwide, reported The San Diego Union-Tribune.
Supported by House Speaker Nancy Pelosi and other lawmakers, the bill is intended to curb soaring drug prices, especially for new drugs. The bill specifically names insulin, which on average nearly doubled in price from 2012 to 2016, according to the Health Care Cost Institute.
Jennifer Nieto, a vice president with the California Life Sciences Association, said lowering the potential return on investment causes investors to be more conservative in where they put their money.
Laure Fabrega , director of federal policy and government affairs at Biocom, said that means "a lot of the more risky R&D projects are going to be put on the shelf," noting that 70% of the R&D pipeline comes from small companies.
San Diego County would be severely hurt if this happens because its life science drug sector is dominated by small and emerging companies, Fabrega added.
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