FTC releases interim report on PBMs

At long last, the FTC released an interim report on PBMs—and the findings are not surprising. We have details, plus more about the winners of BIO’s 2024 Agri-Biotechnology Awards. Don’t forget to take our reader survey! (523 words, 2 minutes, 36 seconds)

FTC releases interim report criticizing PBMs

The Federal Trade Commission (FTC) yesterday released an interim report criticizing the negative impact that pharmacy benefit managers (PBMs) have on prescription drug prices and access.

The preliminary findings: The document, the first result of FTC’s study of PBMs begun in 2022, includes key findings:

• The PBM market “has become highly concentrated, and the largest PBMs are now also vertically integrated” with insurers and pharmacies.
• The leading PBMs can “exercise significant power over Americans’ access to drugs and the prices they pay.”
• “PBMs may have the ability and incentive to prefer their own affiliated businesses.”
• PBMs can “disadvantage smaller, unaffiliated pharmacies and the patients they serve.” 

Congress has questions: During yesterday’s House Energy & Commerce Innovation, Data, and Commerce Subcommittee Hearing on the FTC budget, several U.S. Representatives questioned FTC Chair Lina Khan about the interim report.

What they said, in a nutshell: Rep. Larry Bucshon, M.D. (R-IN), asked about group purchasing organizations (GPOs) that enrich PBMs and insurers. Rep. Diana Harshbarger (R-TN) said PBMs reduce drug access. Rep. Mariannette Miller-Meeks (R-IA) noted six PBMs control 90% of U.S. prescriptions. Rep. Buddy Carter (R-GA) saluted FTC for beginning the study he’d sought for years.

What’s next: The FTC said it is not taking immediate actions on this interim report, which is “part of an ongoing study,” but it did not rule out future action. Khan said yesterday the FTC wants to share more details in the next one to three months.

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BIO Agri-Biotechnology Awards recognize contributions to food security

ICYMI: The winners of BIO’s 2024 Leadership in Agri-Biotechnology Awards are driving efforts that will help ensure food security.

The 2024 George Washington Carver Award went to Dr. Annette Kleiser, CEO of Dalan Animal Health, which created the first-ever honeybee vaccine, an innovation to protect hives against the devastating American foulbrood disease.

Why it matters: “Our vaccine received market authorization in the U.S. at the end of 2022, and subsequently in Canada in 2023,” said Kleiser.

The 2024 Rosalind Franklin Award went to Sylvia Wulf, President and CEO of AquaBounty Technologies, developers of the world’s first genetically engineered animal approved for food, AquaBounty salmon, which grows faster and more sustainably than other salmon.

Why it matters: “It took us 25 years to get our product into market,” said Wulf, recognizing the perseverance of this biotech company and its leaders. “I truly believe that the promise of biotechnology is the promise of the future in terms of food security and environmental responsibility.”

BIO’s view: “The recipients of this year’s Leadership in Agri-Biotechnology Awards both represent what’s possible through biotech innovation and how our industry is leading the way when it comes to agricultural and environmental solutions,” said BIO President & CEO John F. Crowley.

About the awards: BIO’s George Washington Carver Award, sponsored by the Iowa Biotechnology Association, recognizes agricultural and environmental biotechnology achievements. The Rosalind Franklin Award recognizes accomplishments by women in agricultural and environmental biotechnology. The awards were announced at BIO 2024.

Watch to learn more:

President Biden’s Wednesday: Continuing the NATO Summit in Washington after yesterday’s speech, which POLITICO called “both a political and geopolitical test for Biden.”

What’s Happening on Capitol Hill: The House Appropriations Committee will mark up several bills, most notably Labor-HHS and Ag-FDA measures.