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BioCommunique Article

H.R.3 would severely impact life science innovation with new data showing a drastic decrease in jobs, drugs brought to market, and revenue.

New Biocom/CLSA Report Shows Impact of Drug Pricing Legislation on California

  • 2019-11-14T02:48:00.000+0000
  • Washington DC
  • Author: Laure Fabrega

At the end of September, House Speaker Nancy Pelosi released legislation, H.R. 3, the Lower Drug Costs Now Act of 2019, which aims at lowering prescription drug prices by importing foreign price controls on medicines that treat patients here in the U.S. Click here to read Biocom’s summary of the bill.

Biocom has been active in advocating against the legislation, which would have significant consequences for life science innovation. In order to better support our advocacy efforts, Biocom and CLSA commissioned a report by Vital Transformation, a renowned international health economics firm, to show the impact that H.R.3 would have on California’s innovation ecosystem.

The new data show the impact of the bill on biopharmaceutical revenue and how a drop in revenue would translate into fewer drugs in the pipeline, fewer investments into small company capital formation and fewer jobs. If enacted H.R.3 would reduce by 88% the number of drugs brought to market by small and emerging companies in California alone due to changed investor behavior; eliminate over 80,000 biotech R&D jobs nationwide; and reduce US industry revenue by $71.6 billion a year ($358 billion over 5 years), representing a reduction of 58% of earnings before interest and taxes revenue.

“If passed as written, this legislation will suffocate the innovative work of Biocom members and the broader life sciences community to find and develop cures, which has ramifications for every patient and caregiver across every disease, from our children born with rare diseases, to our family members with heart disease, cancer and immune diseases, to our parents affected with dementia,” said Joe Panetta, Biocom’s President & CEO. Click here to view the full release and the study’s findings.