WTO, PBMs, and welcoming John Crowley

It’s an exciting week, as we officially welcome John Crowley as BIO’s CEO. Meanwhile, we look at what happened at the WTO last week, and what’s ahead at the White House listening session on PBMs today. (623 words, 3 minutes, 6 seconds)

WTO meeting ends without IP waiver expansion

BIO was “encouraged” to see the World Trade Organization (WTO) 13th Ministerial end without expanding the COVID vaccine intellectual property waiver to diagnostics and therapeutics.

The background: In 2022, WTO waived IP protections for COVID-19 vaccines, and later proposed expanding the waiver to cover diagnostics and therapeutics. BIO opposed both waivers.

Why it matters: “IP is the backbone of innovation in our industry, enabling scientists and researchers to usher in lifesaving and life-enhancing treatments and products to patients,” says BIO Chief Policy Officer John Murphy. “IP protections helped companies bring novel vaccines and therapies to market in record time” to combat COVID-19.

What worked:Voluntary industry agreements allowed the world to share COVID-19 technology—because innovators knew their IP was protected.

What we should do next: Focus on faster information sharing, reducing trade barriers, addressing health system disparities, and improving coordination among multilateral organizations, says Nancy Travis, BIO’s VP of International Affairs.

BIO’s view: “BIO has consistently advocated against efforts …  to weaken the global IP framework,” said Murphy on Friday. “We welcome opportunities to work with WTO to address genuine trade barriers to access technologies—such as export restrictions—to preserve strong IP protections, encourage innovation, and maintain U.S. leadership in the life sciences.”

What BIO wants the White House to hear in PBM ‘listening session’

The White House will hold a “listening session” today to hear from industry and activists about the challenges posed by pharmacy benefit managers (PBMs). Here’s what BIO hopes they’ll hear.

Why it matters: PBMs act as “middlemen” between drug makers, insurers, and pharmacies, and use their market power to profit by driving up drug prices. 

There are 5 things they need to hear, says BIO in Bio.News:

1. Patients must come first. PBM business practices restrict access or divert funds that could alleviate the burden for patients at the pharmacy counter.
2. Transparency is only the first step. Many proposed PBM reforms focus on transparency, but PBMs fight back with “complacency and complexity.” Transparency is only the beginning.
3. PBM reform means rebate reform. PBMs pocket rebates drug makers pay to ensure their drugs receive insurance coverage. Rebates should be used to reduce costs for patients.
4. Employers have a role to play. PBMs are contracted by employers and health plans, which can also impact PBM behavior. Government officials can raise awareness and give employers tools to facilitate change.
5. Keep an eye on the Inflation Reduction Act (IRA). Along with harming innovation, the IRA also gives PBMs more responsibility in catastrophic care coverage and greater incentive to favor high-cost products. Patient access will suffer as a result.

The bottom line: “The PBM industry evolves so quickly – always in the direction of ever-greater profits for the giant health insurers that own them – that half-measures won’t cut it,” concludes BIO.

President Biden’s Monday: No public events scheduled.

What’s Happening on Capitol Hill: Recess today. On Wednesday, the House Oversight Subcommittee on the Coronavirus Pandemic will hold a hearing, “Examining the White House’s Role in Pandemic Preparedness and Response,” featuring Maj. Gen. Paul Friedrichs, Director of the White House Office of Pandemic Preparedness and Response Policy. On Thursday, Ginkgo Bioworks CEO Dr. Jason Kelly is scheduled to testify at a House Select Committee on the CCP hearing, “The Bioeconomy and American National Security.”