{"id":8346,"date":"2022-07-29T06:55:52","date_gmt":"2022-07-29T11:55:52","guid":{"rendered":"https:\/\/ibio.org\/?p=8346"},"modified":"2022-07-29T06:55:52","modified_gmt":"2022-07-29T11:55:52","slug":"ibio-joins-the-council-of-state-bioscience-associations-to-express-concerns-about-drug-pricing-proposals","status":"publish","type":"post","link":"https:\/\/ibio.org\/ibio-joins-the-council-of-state-bioscience-associations-to-express-concerns-about-drug-pricing-proposals\/","title":{"rendered":"iBIO joins the council of State Bioscience Associations to express concerns about drug pricing proposals"},"content":{"rendered":"<p>Dear Senate Majority Leader Schumer, Senate Republican Leader McConnell, House Speaker Pelosi, and House Republican Leader McCarthy:<\/p>\n<p>The Council of State Bioscience Associations (CSBA) is an alliance of independent, state and territory based, non-profit trade associations, each of which advocates for public policies that support responsible development and delivery of innovative life-enhancing and life-saving biotechnology solutions. We write today to express our serious concerns about the proposals included in the recently released Senate Democrats\u2019 drug pricing proposals, which will devastate that innovation. Most of our biopharmaceutical member companies are small-to-medium in size and relatively few have products on the market. Yet, these companies are leading the world in cutting edge research to develop new therapies and cures, including gene and cell therapies, and of course, vaccines and treatments for COVID-19.<\/p>\n<p>We take pride that our biopharmaceutical companies are providing hope to patients and their families, and that the US biotechnology sector has innovated in record time to develop vaccines and therapies to address the global COVID-19 pandemic. Indeed, our industry continues to lead the world in advancing treatments and cures for cancer, sickle cell and rare, previously untreatable diseases.<\/p>\n<p>These and other incredible advances in biomedical research were only possible because in the past, the biotechnology sector was able to attract significant capital investment, and this environment was bolstered thanks in part to important Federal programs such as SBIR\/STTR1 funding, which itself has yielded at least 99 commercialized drugs since the program\u2019s inception.<\/p>\n<p>Most of our member companies do not yet have commercial products and are reliant on private sector investment. Uncertainty about drug pricing legislation, CMS reimbursement issues (notably for products approved via the accelerated approval pathway), supply chain concerns, threats to intellectual property protections, an unclear pathway for SBIR reauthorization, and potential changes to FDA\u2019s accelerated approval process are contributing to a lack of investor confidence.<\/p>\n<p>As capital markets across sectors continue to contract, the impact on biotech is even more stark. Since peaking in February of 2021, Biotech XBI ETF Index is down 62% \u2014 closing at $174.89 on February 9, 2021 and plummeting to $65.68 by close on June 15, 2022. 2 For the biotech sector, the confluence of policy concerns, daunting legislative proposals and increasing regulatory uncertainty have created the proverbial \u2018perfect storm\u2019 for our sector, to devastating effect.<\/p>\n<p>From an economic perspective, the specter of government price setting threatens to undermine a sector that has created over 1.8 million jobs3 across all 50 states and that represents a large portion of our nation\u2019s Gross Domestic Product (GDP) \u2013 generating an economic output of approximately $2.6 trillion annually.4 The sector already takes on extraordinary risks and makes significant investments in the hope that a few will eventually lead to the next generation of life-saving treatments for patients, and the looming potential of price controls is truly an existential threat to innovation. Biopharmaceutical companies reinvest more into R&amp;D than any other sector \u2014 a 2021 Congressional Budget Office report highlighted reinvestment rates of over 25% in 2018 and 2019.5 In the face of declining capital investment, companies\u2019 ability to reinvest suffers all the more.<\/p>\n<p>Given the impact on investor confidence, the downstream effects of the recently released Senate Democrats\u2019 drug pricing proposal will significantly chill research and development, eliminate American jobs, and drive capital investment away from the life sciences and toward lower risk sectors. Losing this pipeline of investment will significantly disrupt the existing pipeline of potentially transformative treatments. In oncology alone, the University of Chicago found that price controls would reduce overall annual cancer R&amp;D spending by about $18.1 billion, or 31.8%.(6)<\/p>\n<p>While we applaud your efforts to enhance the Part D program by capping seniors\u2019 out of pocket costs and smoothing the patient out of pocket burden over time,<br \/>\nwe strongly oppose the use of government-imposed pricing to achieve this aim. Proposals giving government the power to set prices in Medicare will eliminate competition, disrupt market forces, disincentivize investment and most harmful of all, they will quash the hopes of patients who are relying on this industry to develop next-generation cures and therapies for serious, life-threatening diseases.<\/p>\n<p>Patients deserve hope and access to life-saving therapies, and we believe the biotechnology sector can deliver these so long as the financial ecosystem fosters healthy competition. We appreciate the bipartisan and bicameral efforts to address many of our sector\u2019s most urgent concerns, such as international reference pricing, but we believe there is much more to be done.<\/p>\n<p>We stand ready to work with you to consider alternative proposals such as rebate pass-through and PBM transparency to help propel American innovation forward and deliver affordable, accessible, and innovative therapies for patients who need them.<\/p>\n<p>Thank you for your consideration.<\/p>\n<p>Please contact CSBA Executive Director, Michele Oshman at moshman@bio.org with any questions.<\/p>\n<p>Respectfully,<\/p>\n<p>Alabama \u2013 BioAlabama<br \/>\nArizona \u2013 Arizona BioIndustry Association, Inc. (AZBio)<br \/>\nCalifornia \u2013 Biocom California<br \/>\nCalifornia \u2013 California Life Sciences<br \/>\nCalifornia \u2013 Southern California Biomedical Council<br \/>\nColorado \u2013 Colorado BioScience Association<br \/>\nConnecticut \u2013 BioCT<br \/>\nDelaware \u2013 Delaware BioScience Association (DelawareBio)<br \/>\nFlorida \u2013 BioFlorida<br \/>\nGeorgia \u2013 Georgia Bio (GABIO)<br \/>\nIdaho \u2013 Idaho Technology Council<br \/>\nIllinois \u2013 Illinois Biotechnology Innovation Organization<br \/>\nIndiana \u2013 Indiana Health Industry Forum<br \/>\nIowa \u2013 Iowa Biotechnology Association<br \/>\nKansas- BioKansas<br \/>\nKentucky \u2013 Kentucky Life Sciences Council<br \/>\nLouisiana \u2013 Louisiana BIO<br \/>\nMaine \u2013 Bioscience Association of Maine (BioME)<br \/>\nMaryland \u2013 Maryland Technology Council<br \/>\nMassachusetts \u2013 Massachusetts Biotechnology Council (MassBIO)<br \/>\nMichigan \u2013 Michigan Biosciences Industry Association (MichBIO)<br \/>\nMinnesota \u2013 Medical Alley Association<br \/>\nMissouri \u2013 Missouri Biotechnology Association<br \/>\nMontana \u2013 Montana BioScience Alliance<br \/>\nNebraska \u2013 BioNebraska<br \/>\nNevada \u2013 Nevada Biotechnology &amp; Health Science<br \/>\nNew Jersey \u2013 BioNJ<br \/>\nNew Mexico \u2013 New Mexico Biotechnology and Biomedical Association<br \/>\nNew York \u2013 NewYorkBIO<br \/>\nNorth Carolina \u2013 North Carolina Biosciences Organization (NCBIO)<br \/>\nNorth Dakota \u2013 Bioscience Association of North Dakota<br \/>\nOhio \u2013 BioOhio<br \/>\nOklahoma \u2013 Oklahoma Bioscience Association<br \/>\nOregon \u2013 Oregon Bioscience Association<br \/>\nPennsylvania \u2013 Life Sciences Pennsylvania (LSPA)<br \/>\nPuerto Rico \u2013 INDUNIV<br \/>\nRhode Island \u2013 Rhode Island Bio<br \/>\nSouth Carolina \u2013 South Carolina BIO<br \/>\nSouth Dakota \u2013 South Dakota Biotech Association<br \/>\nTennessee \u2013 Life Science Tennessee<br \/>\nTexas \u2013 Texas Healthcare and Bioscience Institute<br \/>\nUtah \u2013 BioUtah<br \/>\nVermont \u2013 Vermont Biosciences Alliance<br \/>\nVirginia \u2013 Virginia Biotechnology Association (VABIO)<br \/>\nWashington \u2013 Life Science Washington<br \/>\nWest Virginia \u2013 Bioscience Association of West Virginia<br \/>\nWisconsin \u2013 BioForward Wisconsin<\/p>\n<p><a href=\"https:\/\/ibio.org\/wp-content\/uploads\/CSBASignOnJuly2022Final3.0_Signed.pdf\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-8350\" src=\"https:\/\/ibio.org\/wp-content\/uploads\/CSBADrugPrice-785x1024.png\" alt=\"\" width=\"785\" height=\"1024\" \/><\/a><\/p>\n<p>1 National Academies; Assessment of the SBIR and STTR Programs at the National Institutes of Health (2022); https:\/\/nap.nationalacademies.org\/catalog\/26376\/assessment-of-the-sbir-and-sttr-programs-at-the-national-institutes-of-health<br \/>\nAccessed 12 July 2022 19:25<\/p>\n<p>2 https:\/\/www.google.com\/finance\/quote\/XBI:NYSEARCA?sa=X&amp;ved=2ahUKEwi-gsiMme_4AhU_D1kFHcaVCaEQ3ecFegQIHRAg Accessed 10 July 2022 16:52<br \/>\n3 THE BIOSCIENCE ECONOMY: PROPELLING LIFE-SAVING TREATMENTS, SUPPORTING STATE &amp; LOCAL COMMUNITIES https:\/\/www.bio.org\/sites\/default\/files\/2020-06\/BIO2020-report.pdf Accessed 10 July 2022 17:01<br \/>\n4 Ibid.<br \/>\n5 https:\/\/www.cbo.gov\/system\/files\/2021-04\/57025-Rx-RnD.pdf<br \/>\n6 https:\/\/ecchc.economics.uchicago.edu\/2022\/06\/27\/policy-brief-the-impact-of-recent-white-house-proposals-on-cancer-research\/<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dear Senate Majority Leader Schumer, Senate Republican Leader McConnell, House Speaker Pelosi, and House Republican Leader McCarthy: The Council of State Bioscience Associations (CSBA) is an alliance of independent, state and territory based, non-profit trade associations, each of which advocates for public policies that support responsible development and delivery of innovative life-enhancing and life-saving biotechnology [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4300,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[143],"tags":[],"class_list":["post-8346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ibio-news"],"_links":{"self":[{"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/posts\/8346","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/comments?post=8346"}],"version-history":[{"count":3,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/posts\/8346\/revisions"}],"predecessor-version":[{"id":8351,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/posts\/8346\/revisions\/8351"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/media\/4300"}],"wp:attachment":[{"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/media?parent=8346"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/categories?post=8346"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ibio.org\/wp-json\/wp\/v2\/tags?post=8346"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}