Avian flu vaccines + the economics of the IRA

Back to work after the summer holidays—and today, we’re looking at the latest news on human and animal vaccines, plus how the “maximum fair prices” for the first 10 medicines targeted under the Inflation Reduction Act (IRA) renews concerns about the law’s negative impact on innovation. (733 words, 3 minutes, 39 seconds)

USDA testing avian flu vaccine for cows; farmers endorse vaccination

The U.S. Department of Agriculture (USDA) began overseeing tests of a vaccine to protect cows from avian flu as fowl and dairy producers endorsed giving animals a safe vaccine.

What’s happening: Field safety tests on a vaccine candidate started last week, according to Agriculture Secretary Tom Vilsack.

What industry’s saying: Turkey, egg, and dairy producer associations wrote to Secretary Vilsack on Aug. 16 saying they urgently need a vaccine for livestock. Producers were previously hesitant on vaccines because vaccinated animals test positive for avian flu antibodies, which could mean they can’t be exported.

Why it matters: After avian flu spread widely among cattle this year, infecting 194 dairy facilities in 13 states, scientists warned the virus could mutate in mammals to the point that it could cause a human pandemic.

Vaccination needn’t interfere with exports, according to John Torres, BIO Senior Director, Federal Government Relations, Agriculture & Environment: “We need to work with our trade partners to ensure that unscientific barriers to trade don’t arise from the need to address the health of farm animals and the safety of our food supply.”

BIO’s view: “The first line of defense for public health must target the points at which humans and animals come together, and that’s on the farm,” said Torres. “We also must realize that the way farmers address animal health issues is different from how we address human health issues. Respecting those differences is important in designing a successful plan that the farming community will support.” 

Read more at Bio.News.

The economics of the IRA’s impact on innovation

The recent announcement of “maximum fair prices” for the first 10 medicines targeted under the Inflation Reduction Act (IRA) renews concerns about the law’s negative impact on innovation, BIO explains in Bio.News.

The economic reality: The government has already claimed that it will save $6 billion in the first year of price controls alone, with most of that coming directly from manufacturers. There is no question that the law will reduce the amount of capital that companies can access, BIO explains.

Why it matters: Where there is more funding available, R&D expands, with the opposite also being true. This is a phenomenon that is well-documented by economists who have looked at how past policy changes—including the introduction of Medicare Part D and the encouragement of research on Alzheimer’s disease—have influenced this dynamic.

BIO’s view: BIO has been consistent in its criticism of the IRA as a poorly targeted law with unintended—but unavoidable—consequences for research. No other industry in the world reinvests as much revenue into research as biotechnology, meaning that government price controls will have an outsized impact on the ability of the industry to continue to uncover tomorrow’s breakthroughs.

Read and share at Bio.News.

What Else to Know This Week

Novavax’s updated COVID vaccine received Emergency Use Authorization (EUA) from the Food and Drug Administration (FDA). The 2024-2025 formula is authorized for individuals aged 12 and older, Novavax said Friday. The protein-based vaccine is included in the June 27 recommendations issued by the U.S. Centers for Disease Control and Prevention (CDC), and pre-filled syringes will be available at thousands of locations.

California Gov. Newsom signs BIO-backed biostimulant legislation. The new legislation, which BIO helped shepherd, defines “beneficial substances” and “plant biostimulant” consistent with the Association of American Plant Food Control Officials’ (AAPFCO) definitions. Clear definitions will create an easier pathway for these products to market in California. The AAAPFCO recently finalized a model for plant biostimulant legislation. Minnesota and California have now enacted legislation, and a bill was introduced in Vermont. BIO has been supporting biostimulant legislation at both the state and federal levels.

USDA approves genetic trait that helps wheat handle drought. The U.S. Department of Agriculture (USDA) announced approval on Aug. 27 for growing wheat with the HB4 drought-tolerant trait, drawing praise from growers’ associations who anticipate commercial production in the U.S. following field trials. HB4 wheat is genetically modified through the introduction of the Hahb4 gene from sunflowers, which naturally encourages changes in the plant when water is scarce.

Beltway Report: What's Ahead in Washington

Vice President Kamala Harris is planning to unveil the next tranche of her economic plan in a speech in New Hampshire on Wednesday, CNN reports. The Trump campaign has two stops planned in Wisconsin: a town hall in Milwaukee on Thursday and a rally at Mosinee at the Central Wisconsin Airport on Saturday. Congress is in its final week of recess, and will have until Oct. 1 to pass a funding bill.