Price Caps Undercut Follow‑on Cancer R&D

A new Health Affairs study analyzed every FDA‑approved cancer drug (2000–2024) and found 42% later received follow‑on approvals (new indications) and 60% of those treated earlier stages of disease. The Inflation Reduction Act’s price‑cap timing (9 years for small molecules, 13 for biologics, measured from first approval) shortens the effective commercial window for follow‑ons, reducing the incentive to perform the additional trials that often produce these better‑outcome uses. — This reframes the IRA’s drug‑price tradeoff from immediate cost savings to a long‑run innovation policy question: capping prices can shrink follow‑on clinical research that produces more effective, earlier‑stage cancer treatments.