A misguided policy enacted by former President Joe Biden has led to a 70 percent decline in investment in small-molecule drugs in the United States, raising concerns about the future of American innovation, patient access to medicines, and U.S. competitiveness.

The sharp decline in investments since 2021 has been fueled by a provision in the so-called Inflation Reduction Act (IRA), widely known as the "Biden Pill Penalty." The policy subjects small–molecule drugs — typically pills, tablets, and capsules — to government price-setting four years earlier than biologics, typically, injectables and drugs administered intravenously (IV). The inevitable result has been fewer cures at higher costs.

"The Biden IRA has been a nightmare for American patients and is causing sky-rocketing out-of-pocket costs on Pill Penalty prescriptions," Joel White, president of the Council for Affordable Health Coverage, told the Washington Reporter.

"Joe Biden and Democrats in Congress have forced the drug companies to move away from developing the kinds of drugs patients prefer — because they're easier to take, more affordable, and more widely available — and these companies are now being pushed toward developing more injectables and IV treatments instead,” White continued.