312-422-1111 ibioadmin@ibio.org

Washington, D.C. (March 23, 2021) –The Council of State Bioscience Associations (CSBA) today (iBIO is a member of the CSBA and John Conrad serves on the board of directors), released data analyzing the potential impact of various drug pricing proposals on patient access to lifesaving medicines, future biomedical innovation, and the economic health of the life sciences industry.

The study, which was conducted by Vital Transformation, an international health economics firm, examines the negative effects of bills like “Lower Drug Costs Now Act of 2019” and other foreign reference pricing models had they been enacted.

The research finds that, had a bill like the “Lower Drug Costs Now Act of 2019” been in place from 2009-2019:

  • A basket of 68 innovative therapies that had been developed by small and emerging biotechs and approved during that timeframe would have been reduced to only 7, leaving critical health care gaps for millions of Americans.
  • New medicines for some of the most difficult conditions to treat, including in rare diseases, oncology, and neurology, would be disproportionately impacted.
  • Biopharmaceutical industry job losses alone would total nearly 191,000, with total job losses across the economy of more than 950,000 when indirect effects are included.
  • Triggering these losses would be the sharp drop in U.S. biopharmaceutical industry earnings (a 62% reduction, or $125 billion in 2024 alone) caused by the bill, leading to large reductions in established companies’ ability to invest in small and emerging biotechs, chilling drug development.

After the data was released, Michele Oshman, Executive Director of Council of State Bioscience Associations (CSBA) and Vice President of External Affairs at the Biotechnology Innovation Organization (BIO) remarked:

“We are deeply concerned about efforts to enact price controls on America’s vibrant bioscience industry, which leads the world in developing the cutting-edge treatments on which many Americans rely to live healthy lives. If enacted, price setting policies would significantly impede researchers’ ability to bring lifesaving treatments to patients and respond to future health crises — including pandemics. As the last year has made abundantly clear, we cannot afford to short-circuit an industry which offers hope to millions of Americans living with debilitating diseases — some of which currently have no cures — and directly employs nearly 1.9 million workers across the nation. CSBA supports patient- oriented solutions that lower out-of-pocket costs for Americans, maintain access to the latest therapies, and fuel the cures of tomorrow. We will continue to engage lawmakers to find policies that achieve these important goals.”

Find the study here.

About The Council of State Bioscience Associations
The Council of State Bioscience Associations (CSBA) is a confederation of state-based, non- profit trade organizations each governed by its own board of directors convened by the Biotechnology Innovation Organization (BIO). The common mission of the members of the CSBA is to promote public understanding and to advocate for public policies that support patient access to lifesaving therapies and the responsible development of the bioscience industry.

About Vital Transformation
Vital Transformation understands the implications of new medical procedures, technologies and policies. We measure their impact on current clinical practices in close collaboration with health care professionals, researchers, and regulators. Through our web platform and client network, we are able to communicate our findings with international decision makers and stakeholders. Our Vital Transformation branded round-tables, webinars, and conferences are often oversubscribed, and are regularly presented in partnership with global thought-leaders and organizations.

X