Firms generally dedicate 15% to 20% of their revenues to drug development.
These price controls would reduce drug companies’ revenues by $1 trillion over 10 years, according to the Congressional Budget Office.
Based on the Council of Economic Advisors’ assumptions, that means firms will devote roughly $200 billion less to research and development, resulting in 100 fewer new drugs over the next decade.
Once these price controls, taxes, and other penalties begin depleting their revenue, firms will curtail research and development — and thus lay off American workers.
According to a recent poll, 45% of drug firms said that “significant” reductions in research and development could force immediate job cuts and facility closures.
