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
May 20, 2026

Proalix BioTherapeutics

Negative Outlook

Hackensack, NJ
1-50 employees

Limited reimbursement amounts may reduce the demand for, or the price of, Elfabrio, Elelyso or any other future products. If coverage and reimbursement are not available or are available only to limited levels, the sales of Elfabrio, Elelyso or other future products, if any, may be diminished or we may not be able to sell such products profitably.

Disease Area: Rare Diseases
March 31, 2026

Takeda

Layoffs

Cambridge, MA
50,001+ employees

Takeda’s recently announced reorganization may affect approximately 634 U.S. employees, including 247 in Cambridge, Massachusetts effective July 1, 2026, through Dec. 31, 2027, and 387 in other states, though the total could change as staff pursue redeployment opportunities.

Disease Area: Multiple
Drug Type: Biologic, Small Molecule
March 31, 2026

Novartis/NJ

Layoffs

East Hanover, NJ
50,001+ employees

Novartis is laying off 114 employees at its East Hanover, New Jersey site, with terminations running from June 26 through Nov. 27, continuing a pattern of workforce reductions at the location over the past year.

Disease Area: Oncology, Rare Disease
Drug Type: Biologic, Small Molecule
March 26, 2026

Takeda

Layoffs

Cambridge, MA
50,001+ employees

Takeda has announced a significant restructuring to streamline corporate functions and generate more than $1.25 billion in savings by fiscal year 2028, though the full workforce impact has not yet been disclosed.

Disease Area: Multiple
Drug Type: Biologic, Small Molecule
March 20, 2026

BiomX

Layoffs

Tel Aviv, Israel
51-200 employees

BiomX laid off a significant portion of its staff in December following the discontinuation of its Phase 2b multi-phage cocktail BX004 for cystic fibrosis, after an external data monitoring committee identified unexpectedly high rates of adverse events.

Disease Area: Respiratory Diseases
Drug Type: Biologic
March 19, 2026

Sol-Gel Technologies Ltd

Neutral Outlook

Whippany, NJ
1-50 employees

In August 2022, the Inflation Reduction Act, or IRA, was signed into law. The IRA includes multiple provisions that may impact the prices of drug products that are both sold into the Medicare program and throughout the United States. For example, a manufacturer of a drug or biological product covered by Medicare Parts B or D must pay a rebate to the federal government if the product’s price increases faster than the rate of inflation.

Disease Area: Dermatology, Oncology, Rare Diseases
Drug Type: Small Molecule
March 19, 2026

Larimar Therapeutics

Neutral Outlook

Bala Cynwyd, PA
51-200 employees

Since that time, there have been multiple healthcare reform measures, including the Inflation Reduction Act of 2022 (“IRA”) which, among other things, allows HHS to directly negotiate the selling price of a statutorily specified number of drugs and biologics each year that CMS reimburses under Medicare Part B and Part D. The negotiated price may not exceed a statutory ceiling price. Only high-expenditure single-source biologics that have been approved for at least 11 years (7 years for small molecule drugs) can be selected by CMS for negotiation, with the negotiated price taking effect two years after the selection year.

Disease Area: Neurological Diseases, Rare Diseases
Drug Type: Biologic
March 19, 2026

SELLAS Life Sciences Group

Neutral Outlook

New York, NY
1-50 employees

However, the IRA’s impact on the pharmaceutical industry in the United States remains uncertain, in part because multiple large pharmaceutical companies and other stakeholders (e.g., the U.S. Chamber of Commerce) have initiated federal lawsuits against CMS arguing the program is unconstitutional for a variety of reasons, among other complaints. Those lawsuits are currently ongoing.

Disease Area: Hematology, Oncology
Drug Type: Small Molecule
March 18, 2026

Cingulate Inc

Neutral Outlook

Kansas City, KS
1-50 employees

For example, the Inflation Reduction Act of 2022 reduces the US government reimbursement for some drugs.

Disease Area: Psychiatry
Drug Type: Small Molecule
March 18, 2026

Vyome Holdings

Neutral Outlook

Cambridge, MA
1-50 employees

Further, judicial challenges to the IRA may have an impact on the implementation of the IRA’s provisions; and the overall effects of the IRA on Bio’s business and the healthcare industry in general is not yet known.

Disease Area: Dermatology, Immune Diseases
Drug Type: Small Molecule
Scroll to Top