Industry Groups Push for Eliminating "Pill Penalty" in Reconciliation Package

Industry stakeholders are advocating for key healthcare policy changes to be included in an upcoming Republican domestic policy bill expected to pass along party lines. PhRMA and Incubate, a nonprofit supporting venture capital firms, are prominently backing bipartisan legislation that would address disparities in the Inflation Reduction Act's drug price negotiation timeline.

 

The Ensuring Pathways to Innovative Cures (EPIC) Act, reintroduced by two North Carolina Republicans and one Democrat, aims to extend the negotiation eligibility period for small molecule drugs from seven years after FDA approval to eleven years - matching the timeline currently applied to biologics.

 

"This is our priority one, two and three," stated John Stanford, executive director of Incubate. The industry argues this "pill penalty" correction is crucial as venture capital firms are already shifting investments away from small molecule drugs due to the shortened exclusivity period.

 

Additionally, bipartisan support is building for pharmacy benefit manager (PBM) reforms that could be incorporated into the reconciliation package. "Both sides agree on this issue. It's not an issue of contention," noted Rep. Diana Harshbarger (R-TN) during a recent House Energy & Commerce subcommittee hearing.

 

Other healthcare bills seeking inclusion include legislation to reauthorize the rare pediatric priority review voucher program and a controversial proposal from Texas Republicans that would allow reciprocal drug approvals from certain foreign countries - a measure critics warn could undermine FDA authority.

 

For comprehensive coverage of these developing healthcare policy initiatives, please visit Endpoints News.​​​​​​​​​​​​​​​​


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January 20, 2026. Paulding County has been designated a BioReady Silver Community by Georgia Life Sciences, the state’s leading life sciences membership organization. The BioReady designation recognizes communities that demonstrate strong zoning practices, infrastructure capacity, and readiness to support biotechnology and life sciences development. “We are proud to recognize Paulding County as our newest BioReady Silver community,” said Maria Thacker-Goethe, President and CEO of Georgia Life Sciences. “Paulding County’s proactive planning, growing workforce, and access to regional healthcare and transportation infrastructure position it well to support life sciences manufacturing and commercialization. Through the BioReady program, we champion communities that are intentionally preparing to compete for industry investment and job growth.” Paulding County’s designation reflects its commitment to thoughtful land-use planning, scalable infrastructure, and business-friendly development policies that support life sciences and advanced manufacturing uses. Located in the northwest Atlanta metro region, the county offers access to a strong labor pool, major transportation corridors, and regional healthcare systems, making it an attractive option for biotechnology, medical device, diagnostics, and related life sciences companies seeking room to grow. “Georgia BioReady designation validates Paulding County’s readiness to support bioscience investment and strengthens our position as a growing hub for advanced industries,” said Alex Almodovar, President & CEO, Paulding County Economic Development Inc. & Industrial Building Authority The BioReady rating system evaluates communities across three tiers—Bronze, Silver, and Gold—based on their readiness to attract and support life sciences facilities. Through these ratings, Georgia Life Sciences helps municipalities better showcase biotech-appropriate sites, strengthen infrastructure planning, and clearly identify life sciences-friendly locations. This approach enables communities like Paulding County to compete more effectively for private investment and high-quality job creation. Georgia Life Sciences advances innovation, strengthens the workforce pipeline, and grows Georgia’s life sciences economy through the BioReady Community program, modeled after MassBio’s nationally recognized rating system, which assesses a community’s readiness to host life sciences facilities based on zoning practices and infrastructure capacity. About Georgia Life Sciences Georgia Life Sciences, founded in 1989, is a non-profit, membership-based organization that promotes the interests and growth of the life sciences industry. It is the state’s largest and most influential life sciences advocacy and business leadership organization working to improve access to innovative discoveries that have lifesaving impact. The association connects business, academia, government, and other allied entities involved in the application of life sciences products to fuel growth and collaboration through policy development, community programs, national industry initiatives, and a portfolio of educational and networking events. Learn more at galifesciences.org.
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By: Patrick Plues | RealClearHealth January 8, 2026 For decades, America has led the global biotech industry – thanks, in part, to state-level policies that encourage research and manufacturing investments. But other countries, including China, are sparing no expense in the bid to overtake us. Beijing has officially made biotechnology a national strategic priority and is pouring billions into state-backed research and manufacturing efforts. All states should consider impactful biotech policies that grow and strengthen our domestic biotechnology industry. If states fail to utilize and replicate what are considered to be the best and most successful policies in biotech-focused economic development, the United States will soon lose its long-term leadership in developing medicines and medical technologies, which underpin our health, our economy, and our national security. Thankfully, many governors and state legislatures around the country are already answering this call -- as our new study, The U.S. Bioscience Industry: A Powerful Engine for State Economies, demonstrates. Keep Reading at https://www.realclearhealth.com/2026/01/08/americas_biotech_leadership_depends_on_the_states_1157584.html
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