economy
Puerto Rico Can't Afford Price Controls
Congress may soon inadvertently wreck Puerto Rico’s economy.
TL;DR
- Proposed drug price controls in Congress could lead to billions in revenue loss for American biotech companies.
- These controls could reduce research and development spending by nearly equivalent amounts to revenue loss.
- Puerto Rico is a major pharmaceutical and medical device manufacturing hub, with pharmaceuticals accounting for 75% of its exports and 30% of its GDP.
- Nearly 87,000 Puerto Ricans work directly or indirectly in bioscience industries, earning above-average wages.
- The article argues that regulating middlemen like pharmacy benefit managers and insurers is a better alternative to price controls for making medicines more affordable.