CBO: Con­gres­sion­al ac­tion on drug prices will make R&D spend­ing less at­trac­tive

The greed of phar­ma­ceu­ti­cal com­pa­nies has long been one of the rea­sons Con­gress has sought to reign in the in­dus­try’s high price tags for new drugs.

But a new re­port from the non­par­ti­san Con­gres­sion­al Bud­get Of­fice on Thurs­day pours cold wa­ter on the idea that large phar­ma com­pa­nies are pump­ing all their prof­its in­to share buy­backs, mar­ket­ing, and CEO salaries. In fact, the CBO notes that phar­ma spend­ing on drug R&D ramped up by near­ly 50% be­tween 2015 and 2019, and now out­paces what oth­er sim­i­lar in­dus­tries, like soft­ware and semi­con­duc­tor com­pa­nies, spend on R&D.

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