US Inflation Reduction Act of 2022 Impact on Pharmaceuticals Industry

The Congressional Budget Office (CBO) estimates that two key provisions of the new law will save the US government $164 billion over 10 years. But it won't feel the impact until all major regulations come into force. The impact may be seen after four years.

The Control Inflation Act is expected to be an increase in acquisitions across the industry.

That's because it expects companies to look for ways to improve their long-term growth rates, given that revenue growth will be squeezed by the law. By acquiring companies with promising products in the pipeline, pharmaceutical companies can increase the number of future drug launches and generate higher profits.