A drug price bill introduced by Nancy Pelosi is being classified as a danger to small drug companies.
According to The Hill:
Private equity firms are balking at Speaker Nancy Pelosi‘s (Calif.) drug bill, which could be voted on in the House as early as next week.
Back in October, several venture capitalists met with Pelosi’s staff and a group of moderate House and Senate Democrats to voice their concerns, CNBC reports. The day after their meeting, the group of investors published a letter in which they argued that Pelosi’s bill would “lead to an immediate decrease in capital available for early-stage life science companies.”
According to BIO, the biotech industry’s main trade group, seven out of 10 clinical trials for new medications are conducted by small biotech start-ups. To do these trials, the start-ups often rely on funding from private investors.
Pelosi’s bill would allow for the government to arbitrate lower prices on the costliest drugs each year, which many fear will push investors away.
McConnell has vowed to not bring the bill to a vote should it reach the GOP controlled Senate.