Having previously examined the impact of implementing international reference pricing in the United States, Charles River Associates (a leading global consultancy firm) predicted that this would have an adverse impact on new drug R&D investment. Their recent report from December 2021 was produced for PhRMA with the intention to assess the implications of two alternative approaches to drug price regulation, government price setting, and inflation penalties on pharmaceutical innovation. The Build Back Better Act (BBB) is responsible for these policies, passing the House of Representatives in November 2021 and pending consideration for passage by the Senate.

Download the full report below for elaboration on the exact impact on R&D and innovation; the directional shifts in types of R&D; and the unintended consequences in more detail.