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LETTER TO BIO MEMBERS
January 30, 2004
In the year we celebrated the 50th anniversary of the double helix, it seemed only fitting that the industry born of molecular biology excelled in the marketplace, on Wall Street and in Washington.
In 2003, biotechnology revenues continued to grow at a double-digit pace, stocks rebounded sharply, and the industry posted its second-best financing year ever. The FDA approved 25 new biotech products, many first-in-class.
Richard F. Pops
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Carl B. Feldbaum |
On the policy front, the news was just as good. We began 2003 with an FDA initiative to speed more biotechnology products through the development pipeline, and we ended the year with President Bush signing into law a Medicare drug coverage plan that goes a long way toward ensuring seniors and the disabled will have access to the fruits of that pipeline. Although far from perfect, the Medicare Modernization Act reflects our principles for expanding drug coverage and partially reverses draconian cuts in biotech drugs that were already covered by the program.
In June, the president addressed the BIO 2003 convention, where he delivered a rousing speech on biotechnology's potential. Our industry, he said, "will help us to win the war on terror, will help us fight hunger around the world and will help us to save countless lives with new medicines."
Biotechnology's popularity with the president and other public officials is easy to explain — after all, who isn't in favor of an economic growth engine that is clean, benefits public and individual health, and generates highly skilled jobs? Supporting biotech R&D and the incubation and growth of related companies is a no-brainer.
The tougher political issues arise as those companies begin to succeed in developing products for the marketplace: How will they be regulated? How do we ensure that those most in need have access to biotech products without undermining the incentives that drive innovation? Those questions cross every application of biotechnology — health, food and agriculture, and industrial and environmental biotechnology.
As you will see on the pages that follow, BIO has made great progress this past year in striking the right balance on these issues while carefully managing our newfound political clout on behalf of our members:
- We pushed for a revamping of the Medicare program to cover the drugs that are revolutionizing health care.
- Thanks to our advocacy, more than $800 million in grants to promote bioenergy were included in a comprehensive energy bill.
- Bills are now pending in both the House and Senate to allow biotechnology companies to take advantage of net operating losses after technical changes in ownership.
- Key congressional leaders have agreed to support clarification of the rules on Small Business Innovation Research grants, so that small, venture-backed biotech firms will regain eligibility.
- On the agricultural front, we have engaged patient groups and farmer representatives on emerging technologies such as plant-made pharmaceuticals, in order to help forge regulatory strategies that maximize safety while allowing development of much-needed products.
As 2004 begins, most of these issues remain in play. The Medicare drug coverage debate, for example, is far from over. Some in Congress have introduced legislation to amend the new law, and implementation has sparked a flood of regulation-making. BIO has already filed comments on the first of these proposed regulations.
In addition to a hefty advocacy agenda, this year BIO plans to introduce a few new industry conferences, expand our BIO BUSINESS SOLUTIONSsm discount program and step up our consumer education activities. In all of these efforts, our mission remains the same: helping our 1,000-plus members grow biotech businesses through a combination of advocacy, information and business support.
Richard F. Pops
Chairman
Biotechnology Industry Organization
CEO, Alkermes Inc. |
Carl B. Feldbaum
President
Biotechnology Industry Organization
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