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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