Proposed legislation meant to hold down drug prices would result in 53 fewer new medicines over the next decade if it were to become law, according to an analysis commissioned by a trio of pharmaceutical industry associations.

The report takes aim at the Lower Drug Costs Now Act, which is being pitched by House Speaker Nancy Pelosi (D-Calif.) as one of her party's key health care policy priorities for the coming year. Among other things, the bill would give Medicare the power to negotiate prices directly with drug companies and limit pricing based on the prices paid for the same medications in other countries.

"Prescription drug prices are out of control," Pelosi's office said in a statement. "Big pharmaceutical companies are charging Americans prices that are three, four or even 10 times higher than what they charge for the same drugs in other countries—even though they admit they still make a profit overseas."

Drug companies and their supporters argue that the price controls imposed by the legislation would limit innovation in the industry. The new analysis reaches the same conclusion, finding the bill would cut revenues by more than half for companies with affected medicines, leading to a 90% drop in new drugs developed by small U.S. biotech companies, according to a statement. That translates to at least 56 fewer new medicines for patients over 10 years.

Pharmaceutical Research and Manufacturers of America, the Biotechnology Innovation Organization and the Council of State Bioscience Associations commissioned the study.

"This report reaffirms just how destructive Speaker Pelosi's extreme drug pricing plan will be for patients and their families," BIO CEO Jim Greenwood said. "It's imperative that we work to make the medicines of today more affordable, and it's immoral to delay or deny the discovery of new cures and treatments for devastating diseases such as Alzheimer's and Parkinson's."

The consulting firm Vital Transformation conducted the analysis, which was based on another study on the effects of similar legislation in California.

MORE CEO DATELINE

• American Medical Association seeks ban on vaping products
• Hospital groups to sue over price transparency rule
• Report: Ad agencies reconsidering 4A's membership
• Generic drug group sues California over ‘pay-for-delay' law
• Snowsports Industries Association to acquire consumer expos