Good Day BIO: Europe's lessons on drug price controls

The Wall Street Journal Editorial Board explains why Europe’s experience should serve as a warning to the U.S. on drug price controls—something BIO’s been saying for a long time. Plus, BIO provided recommendations to the Biden administration on implementing the biomanufacturing initiative. (631 words, 3 minutes, 9 seconds)

Europe offers lessons for U.S. on drug price controls

As drug makers pull out of a U.K. drug price control scheme and balk at French and German clawbacks,  the Wall Street Journal Editorial Board sees “a lesson from Europe for America on how price controls reduce access to treatments and cures.”

The news: AbbVie and Eli Lilly announced last week they will leave the U.K.’s “voluntary” drug pricing scheme, which caps government growth in drug spending at 2%. Inflation and COVID-driven increases in demand mean meeting the cap requires drug makers to give rebates of 26.5% on 2023 revenues.

Europe’s drug price controls reduce access: “About 85% of new medicines launched between 2012 and 2021 were available in the U.S., compared to 61% in Germany, 59% in the U.K. and 52% in France and Italy,” says the Wall Street Journal Editorial Board.

And they harm R&D, as drug makers cite price controls when they pull products and research operations from Europe, explains the WSJ.

The outlook: “The U.S. has drawn more pharmaceutical investment amid Europe’s war on drug makers, but this may not continue,” the WSJ warns, as price controls threaten to drive drug companies from the U.S., too.

The U.S. still dominates biopharma R&D—and was solely responsible for 61% of medicines approved by the Food and Drug Administration (FDA) between 2011-2020. But now, China is catching up.

BIO’s take: “The U.S. biopharmaceutical industry is the world leader when it comes to bringing new cures to patients in the U.S. and other countries,” says John Murphy, BIO’s Chief Policy Officer. “But to maintain that innovation and ensure patients can access these cures, we need policy that encourages R&D and market entry of new drugs.”

More Reading: Who invents new drugs? (Spoiler: We do.)

More Health News: 

Bloomberg: CDC Chief shakes up agency with new offices, leadership
“The Centers for Disease Control and Prevention director is establishing an Office of Public Health Data, Surveillance and Technology aimed at closing up crucial gaps in monitoring for potential threats…[CDC Director Rochelle] Walensky is also forming an Office of Health Equity that will report to her team.”

How the government can support biotech

The U.S. government should support research, education, and surge capacity, but should limit interventions in areas like international data transfers and trade, says BIO’s recommendations on Biden’s biotech initiative.

What’s happening: The Biden administration requested input on implementing the new National Biotechnology and Biomanufacturing Initiative, which is intended to accelerate biotechnology innovation and grow America’s bioeconomy.

BIO responded with recommendations, which include:

• Support R&Din biobased manufacturing, bioplastics, and other innovations to reduce emissions and plastic pollution.
• Facilitate data access by reducing limitations on domestic and international data transfers.
• Reduce trade barriers that interfere with the biotech supply chain.
• Increase capacity for surges in manufacturing to enhance our ability to respond to emergencies.
• Support technologies enabling carbon capture, biofuels, and other applications to benefit the environment.
• Strengthen the BioPreferred Program to promote procurement of biobased goods.
• Invest in education to build biotech’s human capacity.
• Increase the expertise of government agencies and regulators.
• Update the North American Industry Classification System for manufacturers of renewable chemicals and biobased products.
• Continue efforts aimed at international harmonization of regulation, particularly through the International Council for Harmonization of Technical Requirements for Pharmaceuticals for Human Use.
• Protect IP through the World Trade Organization (WTO) and other bodies.

BIO’s take: “BIO welcomes the opportunity to work with the administration to ensure the U.S. can advance pioneering technology breakthroughs to address climate change and improve the health and prosperity of our nation and the world,” says BIO’s response.

Read BIO’s full recommendations.

Learn more about Biden’s biomanufacturing initiative.

President Biden’s Wednesday: No official events scheduled.

What’s Happening on Capitol Hill: The Senate Agriculture Committee plans its first hearing on the Farm Bill on February 1, with Agriculture Secretary Tom Vilsack scheduled to testify before the committee on March 16, POLITICO reports. Meanwhile, Speaker Kevin McCarthy announced nine Republicans who will serve on a subcommittee panel to investigate the origins of COVID-19.