Research Programs Discontinued
0
Drugs Discontinued
0
since passage of the Inflation Reduction Act
News Updates

Sen. Thom Tillis and John Stanford: Free markets built American prosperity. Government intervention puts it at risk

Incubate and Manatt Release New Report: Regulatory Instability at FDA Is Reshaping Biotech Investment

Washington Post Editorial Board: Moderna’s chilling announcement is a symptom of a deeper sickness

Incubate Survey: 74% of investors say IRA’s pill penalty diverts resources away from small molecule drug development.

Endpoints News: Biotech industry goes six months without an IPO

Leerink Partners report shows no evidence of market failures that block generic competition

National Pharmaceutical Council: Share of drugs with one orphan designation that later received a second designation decreased 48% post-IRA

ITIF: The IRA is negotiating the United States out of drug innovation

Stifel report: Rare disease companies saw $1B loss in value from 2020-2022, with further losses through Feb. 2025

CNBC Video ▶️: Novartis CEO says companies are deprioritizing small molecule medicines for the elderly due to IRA

Vital Transformation analysis: Small molecule funding dropped 70% since introduction of the IRA

Policy & Medicine: The Inflation Reduction Act and its broader impact on innovation, access, and affordability in healthcare

STAT: The IRA will chill rare disease innovation, experts warn. Can lawmakers reignite that spark?

MedPage Today: Experts debate whether IRA provisions stifle pharma innovation at Senate hearing

WSJ Editorial Board: Drug price controls mean fewer cures, IRA causing R&D spending cuts for new medicines

Wall Street Journal: Big Pharma cuts R&D, sending shudders through industry

Novartis CEO on IRA: Companies are managing… by shifting away from small-molecule medicines for other therapies and neurological diseases.

Bloomberg Law: U.S. drug negotiations plan shifts focus for rare disease programs

InsideHealthPolicy: Researchers say IRA may disrupt development of non-opioid pain meds

State Street Global Advisors point to small molecule penalty in latest investment note

Fitch Ratings: Medicare drug price negotiation program expected to deter investments into small molecule drugs

Axios: Drugmakers, investors say they’ve already changed bets in IRA’s first year

GlobalData Market Analysis: Biologics receive $7.6 billion more venture financing than small molecule drugs

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.

Date
Date
Disease Area
Drug Type
Announcement Type
Company Size
February 27, 2026

Ligand Pharmaceuticals Inc

Neutral Outlook

Jupiter. FL
1-50 employees

Most significantly, on August 16, 2022, the former President Biden signed the Inflation Reduction Act of 2022 (“IRA”) into law. This statute marks the most significant action by Congress with respect to the pharmaceutical industry since adoption of the ACA in 2010.

Disease Area: Cardiology, Multiple, Neurological Diseases, Oncology, Rare Diseases
Drug Type: Biologic, Small Molecule
February 27, 2026

Emergent BioSolutions Inc

Negative Outlook

Gaithersburg, MD
501-1,000 employees

While we are not directly affected by the IRA at this time, these types of laws may have a significant impact on our ability to set a product price we believe is fair and may adversely affect our ability to generate revenue and achieve or maintain profitability.

Disease Area: Antiviral, Infectious Diseases
Drug Type: Biologic, Small Molecule
February 27, 2026

VYNE Therapeutics Inc

Neutral Outlook

Stewartsville, NJ
1-50 employees

For example, on August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was signed into law, which among other things, extends enhanced subsidies for individuals purchasing health insurance coverage in ACA marketplaces through plan year 2025.

Disease Area: Endocrinology, Immune Diseases, Rare Diseases
Drug Type: Biologic
February 27, 2026

Amneal Pharmaceuticals Inc

Negative Outlook

Bridgewater, NJ
5,001-10,000 employees

The drug pricing reforms in the IRA have impacted, and may impact in the future, the prices of certain of our products.

Disease Area: Cardiology, Dermatology, Endocrinology, Hematology, Infectious Diseases, Multiple, Neurological Diseases, Oncology
Drug Type: Biologic, Small Molecule
February 27, 2026

Prothena - Dublin

Neutral Outlook

Dublin, IE
51-200 employees

It is unclear how future regulatory actions to implement the IRA, as well as the outcome of pending litigation against the IRA brought against the Department of Health and Human Services (HHS), the Secretary of HHS, CMS, and the CMS Administrator challenging the constitutionality and administrative implementation of the IRA’s drug price negotiation provisions, may affect our products and future profitability.

Disease Area: Multiple, Neurological Diseases, Rare Diseases
Drug Type: Biologic, Small Molecule
February 27, 2026

Aldeyra Therapeutics Inc

Neutral Outlook

Lexington, MA
1-50 employees

For that and other reasons, it is currently unclear how the IRA will be effectuated but it is likely to have a significant impact on the pharmaceutical industry.

Disease Area: Dermatology, Immune Diseases, Neurological Diseases, Oncology, Rare Diseases
Drug Type: Small Molecule
February 26, 2026

GoodRx Holdings Inc

Negative Outlook

Santa Monica, California
501-1,000 employees

The current presidential administration has proposed significant tariffs on apharmaceutical manufacturers that do not adopt pricing policies such as most favored nation pricing, which would tie the price for drugs in the U.S. to the lowest price in a group of other countries. While the impact of the Globe and Guard proposed regulations, if finalized, cannot yet be determined, it is likely to be significant. Even regulatory proposals or executive actions that are ultimately deemed unlawful could negatively impact the U.S. pharmaceutical sector and our business.

February 26, 2026

Certara Inc

Negative Outlook

Radnor, PA
1,001-5,000 employees

The imposition of most-favored-nation drug pricing in the U.S., reductions in Medicare and Medicaid spending, and the introduction of Medicaid work requirements under the One Big Beautiful Bill Act (“OBBBA”) have also had and may continue to have an economic impact on the incentive structure related to drug development R&D spending by our customers.

February 26, 2026

Azitra Inc

Neutral Outlook

Brandford, CT
1-50 employees

It is currently unclear how the IRA will be implemented but is likely to have a significant impact on the pharmaceutical industry

Disease Area: Dermatology, Oncology, Rare Diseases
Drug Type: Biologic
February 26, 2026

Nuvalent Inc

Neutral Outlook

Cambridge, MA
51-200 employees

While it remains to be seen how the drug pricing provisions imposed by the IRA will affect the broader pharmaceutical industry, several pharmaceutical manufacturers and other industry stakeholders have challenged the law, including through lawsuits brought against the HHS, the Secretary of the HHS, CMS, and the CMS Administrator challenging the constitutionality and administrative implementation of the IRA’s drug price negotiation provisions. This litigation is ongoing and the results, and potential impacts on our business, are uncertain.

Disease Area: Oncology
Drug Type: Small Molecule
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