Biden calls for more price controls – BIO reacts

Happy Friday. We have a look at what Biden said during the SOTU—and BIO’s reaction—and celebrate National Biobased Products Day and Women’s History Month. (634 words, 3 minutes, 10 seconds)

Biden calls for more drug price controls in State of the Union address

In last night’s State of the Union address, President Biden called for expanding innovation-killing drug price controls to include 500 drugs over the next decade.

What he said: “This year, Medicare is negotiating lower prices for some of the costliest drugs on the market that treat everything from heart disease to arthritis. Now it’s time to go further and give Medicare the power to negotiate lower prices for 500 drugs over the next decade.”

Contradictory messages: After boasting of taking on “big pharma” (three times) with measures that discourage innovation, Biden touted the creation of the Advanced Research Projects Agency for Health (ARPA-H) and efforts to “end cancer as we know it.”

Why it matters: Inflation Reduction Act (IRA) pricing provisions, and threats of further drug price controls through actions like misusing Bayh-Dole march-in rights, are already creating headwinds for the investment that drives research into new treatments.

It’s becoming a campaign issue: On Wednesday, the Biden administration suggested regulating prices of 50 drugs per year, up from the current maximum of 20. Price controls and “the president’s work on health care, is a signature issue for us,” campaign adviser Neera Tanden told The New York Times.

What else he mentioned: climate provisions in the IRA and a plea to pass the child tax credit bill introduced in the House, which currently contains R&D tax credits.

BIO’s reaction: “I’m disappointed with the president’s comments about the biopharmaceutical and biotechnology industries,” said BIO CEO John Crowley yesterday. “Where we are in agreement is that we need newer and better medicines to deliver hope, treatments, and cures. So, I hope that in a bipartisan way we can come together and advance policies, initiatives, and programs that ensure that we have a vibrant biotechnology industry.”

Watch John Crowley give his reaction:

Biobased Products Day promotes year-round possibilities

March 8 is National Biobased Products Day, a day to recognize the power of these products to increase sustainability and fight climate change while driving new economic activity.

What’s happening: National Biobased Products Day was initiated last year by the U.S. Department of Agriculture’s 22-year-old BioPreferred program, which requires federal agencies to use biobased products. USDA identifies 139 categories of products, from cleaners to carpets, for which agencies must purchase a certain amount of biobased products.

The benefits: reducing waste and greenhouse gas emissions, by replacing petroleum-based products with plant-based ones. Compostable biobased items help boost soil health and water quality, the Plant Based Products Council wrote in a report.

Americans agree: three-quarters of Americans think they’re important for food security and public health, Bio.News reports.

What’s next: USDA is investing $10 million into projects to develop biobased products through the National Institute of Food and Agriculture (NIFA) Bioproduct Pilot Program. The Farm Bill, which was recently extended but awaits full five-year renewal, could boost production and purchase of biobased products. 

BIO’s view: “When you look at the many ways in which biotech companies are rising to the challenge of reducing and mitigating climate impacts, such as developing crop traits and plant-based materials to replace fossil resources, there is no question that biotech is ‘climate tech,’” says Beth Ellikidis, BIO’s VP for Agriculture and Environment.

President Biden’s Friday: Beginning a campaign road trip with a visit to Philadelphia, per The New York Times.

What’s Happening on Capitol Hill: BIO will be watching the House’s consideration of HR 2799, the Access to Capital Act of 2023, which can provide help for early-stage companies seeking capital. Meanwhile, the Senate must pass a government funding bill by midnight to avoid a partial shutdown.