Congress continues its focus on PBMs

PBMs were on the agenda in the House and Senate yesterday—here’s what happened. Plus, as demand for protein grows, biotech is providing sustainable options. (646 words, 3 minutes, 13 seconds)

Congress continues focus on PBMs

Bipartisan legislation to prevent pharmacy benefit managers (PBMs) from driving up drug prices moved forward in the House yesterday, while the Senate Finance Committee announced a hearing to examine PBMs. 

Why it matters: PBMs manage prescription drug benefits for insurance plans and payers—and the three largest PBMs handle 80% of all prescriptions in the U.S. They receive rebates from drug makers, and they should be passing savings on to patients—but research shows they often profit while making drugs costlier.

In the House: The Education and Workforce Committee advanced two bills specifically regulating PBMs with a single "no" vote for each:

• Transparency in Coverage Act would make PBMs disclose rebates from drug makers.
• Hidden Fee Disclosure Act would make PBMs disclose all fees they charge drug makers.

Supporters—and one opponent: Chair Virginia Foxx (R-NC), Ranking Member Bobby Scott (D-VA), and Rep. Joe Courtney (D-CT) praised increased PBM regulation. Rep. Wayne Burlison (R-MO) opposed both bills, saying the Hidden Fee Disclosure Act "will only benefit big pharma" by letting them make "even more profits than they do today."

In the Senate: A draft of the "Medicare PBM Accountability Act," which would require PBMs to inform Medicare plans about "behind-the-scenes practices that drive up prices and costs," was announced yesterday by Sens. Catherine Cortez Masto (D-NV), Thom Tillis (R-NC), Ron Wyden (D-OR), and Mike Crapo (R-ID).

What's next: The Senate Finance Committee tentatively scheduled a markup of the "Medicare PBM Accountability Act" on July 26. The bills passed by the House Education and Workforce Committee were forwarded to the full House.

More Health News: 

Euractiv: MEPs give green light to EU Medicines Agency's new fee system
"European parliamentarians adopted with a large majority a report aiming to simplify the fee structure of the European Medicines Agency (EMA) during a plenary session on Wednesday." 

IFPMA: Global biopharmaceutical trade body announces new CEO leadership team
"The CEOs who will provide strategic guidance to the organization include Albert Bourla, Chairman and Chief Executive Officer of Pfizer, who has been announced as the new President of IFPMA and will serve as the Chair of the IFPMA CEO Steering Committee. He will be joined by Vice-President Thomas Schinecker, CEO of Roche, who will serve alongside existing Vice-President, Sunao Manabe, Executive Chairperson and CEO of Daiichi Sankyo."

How biotech is boosting protein alternatives

Maintaining our protein intake will require adding alternative sources into the mix, and biotech is ready to help.

Where we are now: About half the protein Americans consume comes from meat, which is full of essential amino acids and nutrients. Meanwhile, “livestock plays an important part in many ecosystems and societies,” Nature notes.

Demand for meat is growing—and growth in consumption puts a strain on the supply and the environment.

Enter alternative protein—which can be produced with lower carbon emissions.

One exciting example:Lab-cultivated meat is produced with a cell sample from an animal cultured in a nurturing environment. Two producers of lab-cultivated meat recently received approval to start selling in the United States.

What about fermentation? BIO member Ginkgo Bioworks uses gene-edited yeast as a fermenting agent to biomanufacture sustainable products, such as new protein sources and non-edibles like dye or fragrances. Ginkgo is partnering with NAMUH to produce infant formula with a composition that is closer than ever to mothers’ milk.

Why it matters: “These proteins could have an important role in making food more efficient and environmentally friendly for both humans and animals,” Nature reports.

Learn more: The BIO Impact Ag & Environment Conference in Raleigh in September will cover topics such as biomanufacturing and how biotech can tackle societal challenges, including climate change and nutrition security – learn more and register today.

President Biden’s Thursday: Meeting Finnish President Sauli Niinistö and joining the U.S.-Nordic Leaders’ Summit on a day that will showcase NATO’s newest member, Finland, per AP.

What’s Happening on Capitol Hill: The House Energy and Commerce Health Subcommittee will mark up 17 bills, including reauthorization of the Pandemic and All Hazards Preparedness Act.