Good Day BIO: Price controls mean 31% reduction in cancer R&D spending

A new study finds drug price controls would reduce cancer research funding by 31%. Meanwhile, BIO provides recommendations on how to improve regulatory frameworks at APHIS and advance plant and animal biotech solutions. (710 words, 3 minutes, 33 seconds)

Report: Price controls mean 31% reduction in cancer R&D spending 

President Biden’s Cancer Moonshot would increase funding for cancer research—but proposed drug price controls would decrease actual research spending by nearly 10 times as much, finds a new University of Chicago report.

By the numbers: U.S. public and private spending on cancer R&D is $56.8 billion, and the relaunched Cancer Moonshot promises an annual increase of $1.9 billion, or 3.4%. However, the plan to let Medicare control drug prices would reduce R&D spending by $18.1 billion, or 31.8%, the report shows. 

We would lose 9.4 times as many new drugs due to price controls as we would gain from Cancer Moonshot spending, concludes the report, led by Tomas Philipson, who worked for Biden and chaired the White House Council of Economic Advisers. The analysis uses research quantifying how biopharmaceutical “market practices translate into a predictable positive relationship between realized revenues and R&D spending.” 

As the second-leading cause of death, cancer attracts more R&D spending—and 49.2% of the drugs in the FDA pipeline are cancer treatments. 

But price controls would reduce all drug development, the Congressional Budget Office and other studies have found. 

What they’re saying: “Despite the great intent of the Cancer Moonshot, new evidence tells us the joint implementation of such price controls from Congress will raise cancer mortality substantially and stall out decades of progress to discover treatments for a devastating and personal disease,” writes study author Philipson in The Hill.

The context: Senate Democrats have revived plans for drug price controls this summer, so stay tuned.

More Health Care News: 

JAMA Internal Medicine: Leading causes of death in the US during the pandemic
“From March 2020 to October 2021, heart disease (20.1%), cancer (17.5%), COVID-19 (12.2%), accidents (6.2%), and stroke (4.7%) were the most common causes of death in the US. There were 2.875 million deaths in March to December 2020 and 2.855 million deaths in January to October 2021; the 5 leading causes of death were the same in each year. Among those older than 1 year, the number of deaths increased across age groups.”

BIO: APHIS strategic plan should foster innovation

USDA’s Animal and Plant Health Inspection Service (APHIS) should adopt a strategy to incentivize innovation and “expedite regulatory pathways for breakthrough technology solutions,” said BIO in comments to the agency.

The context: APHIS regulates biotech in agriculture, and has requested comments on a draft strategy framework to guide their next five years of work. BIO’s seven-page response commends APHIS’s work and strategy, and recommends improvements.

Clear regulatory frameworks are needed—because solutions for carbon capture, nitrogen fixing, and other pressing ecosystem issues cannot be commercialized “because of fundamental regulatory challenges facing them,” says BIO.

On protecting agriculture from pests: Clarity is needed on non-plant genetically engineered organisms potentially subject to regulation under APHIS’s Part 340, and APHIS must harmonize innovation policy with the EPA and FDA.

On animal biotechnology: BIO restates its commitment to assisting in developing a transparent, clear, risk-based framework.

On international regulation: BIO urges USDA to “work with our trading partners to create a more harmonized regulatory framework around the world to improve time to market,” citing Mexico’s policy toward genetically engineered products.

On promoting diversity: APHIS can cultivate a diverse, talented workforce through partnerships with land-grant universities, community colleges, and HBCUs. Promoting diversity also means “partnering with USDA extension services to expand technical assistance to underserved producers, potentially providing opportunities for rural development,” adds BIO.

Want to weigh in? The comment period was extended to July 31. Read BIO’s comments here.

More Agriculture and Environment News: 

Emerging Tech Brew: Agtech funding reaches near-record level despite fears of economic downturn
“Companies like Kula Bio and Pivot Bio, for example, are working on novel ways to reduce reliance on or conserve usage of synthetic nitrogen fertilizers. Kula Bio, which makes synthetic nitrogen fertilizer substitutes, raised a $50 million Series A funding in January. For its part, Pivot raised a $430 million Series D in July 2021.”

Food Business News: Younger consumers more likely to try gene-edited foods
"Consumers under age 30 and consumers with incomes above $125,000 a year are less likely to avoid gene-edited foods, meaning foods created through technologies such as CRISPR, according to a study involving researchers from North Carolina State University, Iowa State University and the US Army Corps of Engineers."

President Biden’s Wednesday: Speaking at a school in Cleveland about the American Rescue Plan’s provisions to protect troubled pensions.

What’s Happening on Capitol Hill: The Senate and House are in recess. Meanwhile, a “national bidding war” to be the home of the Advanced Research Project Agency for Health (ARPA-H) is underway, reports Axios.