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.​​​​​​​​​​​​​​​​


By Maria Thacker Goethe October 22, 2025
“Evolving FTC and DOJ policies leave investors and innovators navigating a cautious M&A landscape
October 6, 2025
Atlanta, GA — October 6 — Georgia Life Sciences today announced the launch of Vitals, a new podcast series developed in partnership with Cloudcast Media, a leader in branded podcast production. The series will spotlight the people, ideas, and innovations shaping the future of Georgia’s rapidly growing life sciences sector. Hosted by Georgia Life Sciences’ CEO, Maria Thacker Goethe, Vitals will feature in-depth conversations with scientists, entrepreneurs, investors, educators, policymakers, and patient advocates. Each episode will explore the challenges and opportunities facing Georgia’s life sciences ecosystem—spanning biopharma, medical technology, digital health, and advanced manufacturing. “Vitals gives us a powerful platform to showcase the remarkable work happening within our state,” said Maria Thacker Goethe. “By sharing these stories, we’re highlighting not only groundbreaking science but also the collaboration and talent that make Georgia such a vibrant hub for health innovation.” Cloudcast Media, known for its expertise in storytelling and high-quality podcast production, will bring industry insights and technical support to ensure the series reaches audiences across Georgia and beyond. “We’re proud to partner with Georgia Life Sciences on Vitals,” said Charles Parisi, Founder and CEO of Cloudcast. “This series will elevate the voices of innovators who are advancing science, improving patient outcomes, and building Georgia’s reputation as a global life sciences leader. We are very excited that Cloudcast Atlanta can play a role in supporting Maria and the impactful work of Georgia Life Sciences.” The first episode of Vitals launched today and is available on Apple Podcasts, Spotify, and other major streaming platforms, as well as through the Georgia Life Sciences website.
October 1, 2025
September 30, 2025 WASHINGTON, D.C. – John F. Crowley, President and CEO of the Biotechnology Innovation Organization (BIO) released the following statement on Most Favored Nation policies: "For too many years, Americans have subsidized the research and development necessary to bring newer and better medicines to patients around the world. As we saw with defense spending and NATO, the solution is not to weaken a strategically important American industry, but for other countries to pay their fair share. “Today’s announcement in the Oval Office highlights the problems with a drug delivery system where half of the cost of innovative medicines goes to middlemen and distributors, and where the supply chain distorts prices paid by the American people. We support a new framework that addresses the cost of medicines by simplifying the system - and making medicines directly available to patients. “But importing socialist price controls through most-favored nation policies fundamentally does not address the imbalance in international pricing for innovative medicines. MFN will not lower the out-of-pocket prices that most Americans pay for medicines. Even worse, it will jeopardize the entrepreneurial spirit and deter the capital necessary for a vibrant and essential American biotechnology industry to thrive and may cause most harm to small and midsize biotech companies, which are responsible for discovering more than half of all new treatments. “Without these biotech innovators and a free-market system, we risk slower scientific progress, decreased access to new medicines, compromised national security, fewer American jobs and perhaps most tragically, a diminished hope for those suffering with illness and disease. There are much better ways to address this problem than MFN.” ###
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