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.
Emergent Biosolutions
Layoffs
Gaithersburg, Maryland
501-1,000 employees
“To align resourcing to current needs, Emergent BioSolutions is restructuring its business, a move that includes letting go of 93 employees across the company and eliminating 21 vacant positions. Emergent announced the plans in its second quarter earnings release and provided additional details in a related SEC filing.
The layoffs represent a small number of the company’s overall workforce, which was about 900 employees as of Dec. 31, 2025.
Emergent, which develops and manufactures medicines for diseases including smallpox and makes Narcan, which treats opioid overdoses, did not specify which locations the workforce reduction will affect. However, the announcement noted the closure of wet laboratories in Gaithersburg, Maryland, where the company is based.
The restructuring includes eliminating the role of chief medical officer, head of research and development, pushing Simon Lowry out of Emergent effective Aug. 19. The company is also creating a new “growth organization” that combines research and development, business development and strategy into one function. Stephanie Duatschek will lead that team in her new role as executive vice president, chief growth officer. Previously, she was senior vice president, chief global strategy and franchise development officer.
Emergent expects to incur costs of $10 million to $11.5 million in connection with the restructuring. As of June 30, the company’s capital resources included $139.7 million in cash and cash equivalents.”
United Therapeutics Corp
Neutral Outlook
Silver Spring, MD
1,001-5,000 employees
While the impact of the IRA on the pharmaceutical industry cannot yet be fully determined, it is likely to be significant.
Sarepta Therapeutics, Inc.
Neutral Outlook
Cambridge, MA
501-1,000 employees
The U.S. government and individual states continue to aggressively pursue healthcare reform, which includes ongoing attempts to manage utilization as well as control and/or lower the cost of prescription drugs and biologics. Recent years have seen a number of reform initiatives focused on drug pricing and payment. For example, the Inflation Reduction Act (“IRA”), passed in 2022, has had and will likely continue to have a significant impact on the pharmaceutical industry.
Tenaya Therapeutics, Inc.
Neutral Outlook
South San Francisco, CA
51-200 employees
For example, the IRA passed by Congress authorizes the Secretary of the Department of HHS to negotiate prices directly with participating manufacturers for selected medicines covered by Medicare even if these medicines are protected by an existing patent. While we do not believe that the IRA or its effects will impact our ability to obtain patents in the near future, we cannot be certain whether it will affect our patent strategy in the long run.
Schrodinger, Inc.
Neutral Outlook
New York, NY
501-1,000 employees
Accordingly, while it is currently unclear how the IRA will be effectuated, we cannot predict with certainty what impact any federal or state health reforms will have on us, but such changes could impose new or more stringent regulatory requirements on our activities or result in reduced reimbursement for approved products, any of which could adversely affect our business, results of operations and financial condition.
Akebia Therapeutics, Inc.
Neutral Outlook
Cambridge, MA
201-500 employees
On August 16, 2022, the Inflation Reduction Act of 2022, or IRA, was signed into law by President Biden. Among other things, the IRA imposes rebates under Medicare Part B and Medicare Part D to penalize price increases that outpace inflation (first due in 2023); and replaces the Part D coverage gap discount program with a new discounting program (beginning in 2025).
BeOne Medicines Ltd.
Neutral Outlook
Cambridge, MA
10,000+ employees
The IRA includes several provisions that may impact our business to varying degrees, including provisions that create a $2,000 out-of-pocket cap for Medicare Part D beneficiaries, impose new manufacturer financial liability on all drugs in Medicare Part D, allow the U.S. government to negotiate Medicare Part B and Part D pricing for certain high-cost drugs and biologics without generic or biosimilar competition, require companies to pay rebates to Medicare for drug prices that increase faster than inflation, and delay the rebate rule that would require pass through of pharmacy benefit manager rebates to beneficiaries.