Biocom California Statement on New Drug Pricing Legislation

Biocom California, the association representing the California life sciences industry, has released the following statement regarding the drug pricing portion of the Inflation Reduction Act. The statement can be attributed to Joe Panetta, President and CEO of Biocom California:

“After a detailed review and review of the drug pricing provisions included in the Inflation Reduction ActWe at Biocom California have no choice but to oppose this legislation because it once again fails to protect innovation and bring about meaningful change for patients.

While we wholeheartedly support the provisions of the bill that establish a much-needed $2,000 cap on patient out-of-pocket expenses and the restructuring of the Medicare Part D benefit program, we are deeply concerned that the bill ignores the tireless work of knowledgeable legislators. who proposed alternatives that struck a delicate balance between promoting affordability for patients and recognizing the role of the biomedical innovation community in bringing innovative medicines to market.

We appreciate that the bill does not include foreign price controls, but it still gives the federal government a unilateral determination of a drug’s value and, if a company disagrees with that assessment, it would effectively be excluded from the entire health insurance market. This is pure government price fixing, not negotiation.

The bill would impact not only drugs selected for “negotiation,” but also future drugs that depend on low-risk investments to develop. Price controls have been proven to destabilize innovation ecosystems by scaring away capital investment, chilling research and development, and eliminating jobs. Ultimately, they reduce the number of drugs being developed and reaching patients.

A recent study by Vital Transformation estimated that the bill would reduce innovator revenues by at least 55%, putting 104 drugs out of 110 or 95% of the pipeline at risk of canceled development and costing California more than 100,000 jobs. California is the world leader in biomedical innovation and a vital contributor to the state’s economy, generating more than $400 billion in annual economic activity and supporting nearly 1.4 million jobs. Thus, California businesses and the state’s overall economy will be disproportionately affected, especially small businesses that create more than half of new drugs.

The bill also ignores repeated calls from more than 130 patient associations to prohibit the federal government from using pricing methodologies that ration care and discriminate against the elderly and disabled.

Finally, the bill would deprive the industry of nearly $300 billion in revenue to reduce federal government spending on prescription drugs. Yet there is absolutely nothing in the bill that compels the federal government to pass a penny of these “savings” on to patients. Instead, they aim to reduce the budget impact of unrelated provisions in the bill that, paradoxically, invest in other research and manufacturing industries, effectively picking winners and losers.

After years of debate and evidence-based contributions from our industry, the patient community, and legislators with deep technical knowledge of the innovation ecosystem, it is alarming that Congress is pursuing yet another drug pricing proposal that endorses pricing and does not recognize the role of scientific discovery, despite our successful work to combat the COVID-19 pandemic. As always, we stand ready to work with Congress to pass bipartisan proposals that meaningfully address health system inefficiencies and bring all stakeholders together. »

About Biocom California

Biocom California is the leader and advocate for the life sciences industry in California. We work on behalf of over 1,600 members to drive public policybuild an enviable network of industry leaderscreate access to capitalintroduce cutting-edge STEM education programs and create strong values purchasing programs.

Founded in 1995 in San Diego, Biocom California provides the loudest public voice for research institutions and businesses that fuel the local and statewide economy. Our goal is simple: to help our members produce innovative solutions that improve the human condition. In addition to our San Diego HeadquartersBiocom California operates central offices in Los Angeles and the San Francisco Bay Areawith satellite offices in Sacramento, washington d.c. and Tokyo. Our many membership benefits apply to biotechnology, pharmaceutical, medical device, genomics and diagnostics companies of all sizes, as well as universities and research institutes, clinical research organizations, investors and suppliers. Services.

For more information about Biocom California, please visit our website at www.biocom.org. Join us on LinkedIn, Facebookand Twitter (@BIOCOMCA).

Source: California Biocom

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