With low confidence in the medical sphere thanks to the lack of funding by the government, and the higher taxes on manufacturers, potential investors who stand to profit from the production of drugs are discouraged from putting their money into companies who research – as the companies producing drugs lose money or are unfairly taxed, market confidence drops significantly. After all, research is costly and time-consuming, and the pay-off is long-term.
In truth, scientific work is hardly profitable to investors. Many projects are abandoned because they don’t make the profit expected, or do so fast enough. The incentive for investing in R&D is already low, and with the added external pressures now applied by the ACA, it’s likely to fall further.
How the ACA Affects Pharmaceutical Innovation
The pharmaceutical companies in this country are no longer able to control the prices of their products, to compensate for the investments they make in research under the Affordable Care Act. Why? Because the federal and state funds fall short in aiding them, and they’re submitted to unfair taxation and stringent regulatory processes which only slow production and thus profit.
