News Updates
Incubate’s Investment Tracker measures the impacts of the Inflation Reduction Act’s healthcare provisions on the life sciences ecosystem, with special attention to the impacts of the small molecule penalty.
Atavistik Bio raised $160 million to advance precision allosteric small molecules for the treatment of rare diseases and precision oncology.
City: Cambridge
State: MA
Investment Amount: $160
Matinas BioPharma Holdings, Inc
Neutral Outlook
Bedminster, NJ
1-50 employees
Legislative, administrative, and private payor efforts to control drug costs span a range of proposals, including drug price negotiation, Medicare Part D redesign, drug price inflation rebates, international mechanisms, generic drug promotion and anticompetitive behavior, manufacturer reporting, and reforms that could impact therapies utilizing the accelerated approval pathway. We cannot predict the ultimate content, timing or effect of any changes to the ACA, the Inflation Reduction Act, or other federal and state healthcare policy reform efforts including those aimed at drug pricing.
Neonc Technologies Holdings, Inc/CA
Neutral Outlook
Calabasas, CA
1-50 employees
In addition, on August 16, 2022, President Biden signed the Inflation Reduction Act of 2022 (the IRA) into law, which among other things, extends enhanced subsidies for individuals purchasing health insurance coverage in ACA marketplaces through plan year 2025. The IRA also eliminates the “donut hole” under the Medicare Part D program beginning in 2025 by significantly lowering the beneficiary maximum out-of-pocket cost through a newly established manufacturer discount program.
Omeros Corp
Negative Outlook
Seattle, WA
201-500 employees
Inflation Reduction Act Deductions. If, during the Net Sales Term for an Anticipated Product in the United States, such Anticipated Product is designated as a Selected IRA Drug by the Secretary of the U.S. Department of Health and Human Services, and Novo Nordisk or its Affiliate or its or their licensee or Sublicensee is required to negotiate and is ultimately subject to a Maximum Fair Price that will apply to sales of such Anticipated Product during the Price Applicability Period (the Calendar Quarter during which such event occurred, the “Event Quarter”), then the Net Sales of such Anticipated Product in the United States[***] will be reduced by [***].
Palvella Therapeutics, Inc.
Neutral Outlook
Wayne, PA
1-50 employees
Several healthcare reform proposals culminated in the enactment of the Inflation Reduction Act of 2022 (“IRA”) for example, contains substantial drug pricing and other reforms to Medicare’s coverage of pharmaceuticals. Among other things, the IRA eliminated, beginning in 2025, the coverage gap under Medicare Part D by significantly lowering the enrollee maximum out-of-pocket cost and requiring manufacturers to subsidize, through a newly established manufacturer discount program (replacing the former Coverage Gap Discount Program), 10% of Part D enrollees’ prescription costs for brand drugs below the out-of-pocket limit, and 20% once the out-of-pocket limit has been reached.
NeuoSense Therapeutics Ltd
Negative Outlook
Tel Aviv, Israel
1-50 employees
On August 16, 2022, President Biden signed into law the Inflation Reduction Act that is intended to lower certain prescription drug costs under Medicare. The law permits the Medicare program to negotiate Medicare payments for a limited number of drugs. On August 1, 2024, CMS announced an agreement reached for negotiated Medicare prices for 10 selected drugs. CMS then announced on January 17, 2025, negotiations for Medicare prices for 15 selected drugs. In addition, the law set a cap of $2,000 in 2025 on out-of-pocket drug costs for Medicare eligible individuals…If healthcare policies or reforms intended to curb healthcare costs are adopted, or if we experience negative publicity with respect to the pricing of our products or the pricing of pharmaceutical drugs generally, the prices that we charge for any approved products may be limited, our commercial opportunity may be limited and/or our revenues from sales of our products may be negatively impacted.
Belite Bio, Inc
Neutral Outlook
San Diego, CA
51-200 employees
Notably, on August 16, 2022, President Biden signed the “Inflation Reduction Act of 2022” (IRA) into law, incorporating many key provisions of the “Build Back Better Act”. Prescription drug price reform is a focal point of this landmark legislation that incorporates many proposals advanced over the last decade to overhaul drug costs under the Medicare program.
Belite Bio, Inc
Neutral Outlook
San Diego, CA
51-200 employees
Notably, on August 16, 2022, President Biden signed the “Inflation Reduction Act of 2022” (IRA) into law, incorporating many key provisions of the “Build Back Better Act”. Prescription drug price reform is a focal point of this landmark legislation that incorporates many proposals advanced over the last decade to overhaul drug costs under the Medicare program.
OS Therapies Inc
Neutral Outlook
Grasonville, MD
1-50 employees
Healthcare reform legislation also influences coverage, pricing and reimbursement for biopharmaceutical products. In the United States, statutes such as the Affordable Care Act and the Inflation Reduction Act, as well as other federal and state programs, establish requirements for Medicaid and Medicare drug rebates, coverage determinations, pricing transparency and other programmatic matters.