New Analysis Concludes Pelosi’s Drug Plan would Harm Innovation

November 22, 2019 in Life Sciences News by Denise Bell

POLICY UPDATE – DRUG PRICING

Concerns Expressed by Investors, Small Companies 

House Speaker Nancy Pelosi’s drug pricing measure, H.R. 3 , the Elijah E. Cummings Lower Drug Prices Now Act, is coming under increasing scrutiny as concerns grow about the bill’s negative impact on innovation and future investment in smaller, emerging drug discovery companies. Yesterday, BIO, PhRMA, and the Council of State Bio Associations, of which BioUtah is a member, announced the release of a new analysis by economic consulting firm, Vital Transformation, that shows that Pelosi’s drug pricing plan could result in 56 fewer new medicines over 10 years. The analysis specifically looks at the bill’s international reference pricing provisions and concludes that it would undermine development of innovative medicines by nearly 90%.

Small biopharma and biotech companies have a significant presence in Utah. They’re working to develop better medicines and cures for serious disease, such as MS, ALS, HIV, cancer, antibiotic resistance, degenerative disc disease, amongst others. Their ability to attract capital is key to growth and success. However, the extensive price control mechanisms contained in H.R. 3 could potentially drive investment away from drug discovery, and impede innovation. Recently, a number of biopharma/biotech investment firms sent a letter to House leadership underscoring this point. Also, a Duke Professor wrote an opinion piece https://www.fayobserver.com/news/20191120/duke-professor-private-sector-plays-key-role-in- developing-breakthrough-medicines  in the Fayetteville Observer making the case for the importance of private-sector funding in developing breakthrough medicines.

BIO ACTION ALERT

To make sure our voices are heard, BIO has organized a national sign-on letter for small drug discovery and development companies. As Congress considers policies that will greatly impact our growing biopharma/biotech industry, it’s important that we engage and express our concerns. Please view the Action Alert and send your approval to sign onto the letter to Ben Collins at bcollins@bio.org by Monday, November 25, and contact your members of Congress to express opposition to H.R. 3.