In this episode of the Vital Health Podcast, host Duane Schulthess speaks with Harry Bowen, Economics Research Partner at Vital Transformation, about their newly published study on the Inflation Reduction Act (IRA) and late-stage drug research, including additional uses of medicines after their first FDA approval.

They explain why separating small molecules from biologics and examining the mix of research across disease areas can reveal patterns hidden in aggregate results. The conversation also covers policy expectations, venture capital, global biopharma competition, and the economic trade-offs involved in tariffs and domestic manufacturing.

Key Topics:
- Late-Stage Cancer Research: Follow-on studies, lead indication approvals, orphan oncology research.
- Research Portfolio Choices: Small molecules and biologics, disease categories, study counts and research proportions.
- Policy Expectations: Decisions before enactment, uncertainty, earlier venture capital and angel investment findings.
- Global Biopharma Competition: Research locations, European and U.S. experience, Chinese-origin assets and licensing.
- Trade Policy Costs: Generic manufacturing, proposed tariffs, export restrictions, and opportunity cost.

Resources Discussed & Further Reading:
- The Inflation Reduction Act’s Modeled Impacts upon Late-Stage R&D (Vital Transformation, 2026): https://link.springer.com/article/10.1007/s43441-026-01061-4
- The Price Control Debate: Protecting Patient Access and Future Innovation (Sanofi, 2026): https://www.sanofi.us/en/sanofi-today/social-impact/the-price-control-debate-protecting-patient-access-and-future-innovation
- The Inflation Reduction Act’s Impact Upon Early-Stage Venture Capital Investments (Vital Transformation, 2025): https://link.springer.com/article/10.1007/s43441-025-00773-3
- CBO’s Model of Drug Development: Ongoing Updates (Congressional Budget Office, 2025): https://www.cbo.gov/system/files/2025-04/61231-Drug-Development-Model.pdf
- The Historical Impact of Price Controls on the Biopharma Industry (Vital Transformation, 2021): https://vitaltransformation.com/2021/11/the-historical-impact-of-price-controls-on-the-biopharma-industry/
- China Is Increasing Its Share of Global Drug Development (Goldman Sachs, 2025): https://www.goldmansachs.com/insights/articles/china-is-increasing-its-share-of-global-drug-development

Opinions expressed are those of the speakers.

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