Good Day BIO: White House to boost sustainable fuels production to 3 billion gallons

September 10, 2021
A busy end to the week as a group of small biotech leaders and investors explain why H.R. 3 would halt investment in R&D—and offer alternative strategies to help patients get the drugs they need. Plus, the White House announced an administration-wide initiative to…
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A busy end to the week as a group of small biotech leaders and investors explain why H.R. 3 would halt investment in R&D—and offer alternative strategies to help patients get the drugs they need. Plus, the White House announced an administration-wide initiative to increase the production of sustainable aviation fuels. (686 words, 3 minutes, 25 seconds)

 

Small biotechs back alternatives to H.R. 3

 
 

Nearly 400 leaders and funders of small biotechnology companies sent an open letter on Wednesday to lawmakers explaining that drug price controls like those in H.R. 3 would halt investment in new drug R&D.

The background: The Senate Finance Committee is working on its own version of H.R. 3, legislation that would allow the Center for Medicare and Medicaid Services (CMS) to negotiate drug prices with manufacturers based on an international price index of prices paid in several other countries.

Read: H.R. 3 is back 

“This is not true negotiation,” say the biotech investors and leaders who signed this week’s letter. 

“Such draconian measures would immediately halt private funding of drug discovery and development,” they explain. “The loss of hundreds of thousands of well-paying jobs would be swift, though it may take longer for the public to sense the loss of future treatments and cures.” 

This tracks with recent Congressional Budget Office (CBO) analysis, which found drug development would suffer under H.R. 3, causing 8% fewer drugs to enter the market each year. 

Instead of price controls, these small biotech leaders and investors call for containing the cost of prescription drugs without hurting R&D through two strategies:

  • Reducing “the amount that insurance plans can make patients pay out-of-pocket” for medicines with new legislation, “just as policymakers have appropriately outlawed discrimination on the basis of pre-existing conditions.”
  • Ensuring that more drugs go generic. While the cost of medical treatments rises over time, the cost of drugs eventually drops after drugs go generic, the letter notes. “Certain drugs do not go generic even after their patents have expired, and CMS could save money by solving that particular market failure.”

See the details. 

Dr. Michelle's Diagnosis: 
BIO has repeatedly warned that price fixing policies would have catastrophic impacts on biomedical investmentespecially to small-to-medium-sized companies. The end result would stall the current R&D pipeline, which ultimately means fewer life-saving and life-enhancing treatments coming to vulnerable patients. – BIO President & CEO Dr. Michelle McMurry-Heath

Read: Tiny biotechs fear ‘nuclear winter’ from H.R. 3

 

More Health Care News: 

The Seattle Times (Opinion): Weakening IP protections won’t help developing countries fight COVID-19
“Some members of Congress seem to think an IP waiver is good politics. But it won’t get shots into arms when people really need it—which is right now,” writes Gary Locke, former U.S. Secretary of Commerce, governor of Washington State, and U.S. Ambassador to China. 

 
 
 
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White House to boost sustainable fuels production to 3 billion gallons

 
 

The Biden administration and aviation sector announced a plan yesterday to advance the production and use of sustainable aviation fuel (SAF), which will not only reduce emissions but also have widespread economic benefits. Details below. 

What: The Biden administration and aviation sector will work together to reduce aviation emissions 20% by 2030 when compared to “business as usual,” says the White House fact sheet

How: In coordination with several airlines and government agencies, the administration will launch a Sustainable Aviation Fuel Grand Challenge to increase production to at least 3 billion gallons per year by 2030. 

Why SAF: Made from renewable biomass and waste feedstocks, SAF can reduce greenhouse gas emissions by up to 80% compared to conventional jet fuel—making it an important biotech solution for climate. SAF producers are also making significant investments in sustainable agriculture, clean fuels infrastructure, and new energy solutions to power the way we move. 

Why it matters: This will not only “transform the aviation sector,” but also “create good-paying jobs, support American agriculture and manufacturing, and help us tackle the climate crisis,” says the White House. 

BIO’s on board. We recently submitted testimony on the importance of developing and deploying SAF and have longsupported SAF tax credits. 

BIO members are on board, too. Companies including Gevo, LanzaTech, Velocys, and Virent are among the many companies partnering with airlines and the administration to scale up production—read more.

 
 
 
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Meet Tom: Educating the Public About Sepsis

I am BIO: Meet Tom of the Sepsis Alliance
 
 

After his daughter suddenly passed away from septic shock following routine surgery, Dr. Carl Flatley founded the Sepsis Alliance to advocate for patients and raise awareness of risk factors and symptoms of sepsis—which is the #1 cause of death in U.S. hospitals.

September is Sepsis Awareness Monthlearn more about how you can get involved and watch the Sepsis Alliance’s President & CEO Tom Heymann talk about why he loves his work.

 
 
 
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BIO Beltway Report
BIO Beltway Report
 
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President Biden’s Friday: This morning, he’ll give remarks on what the administration is doing to keep kids safe in school as the pandemic continues. The White House COVID-19 Response Team will hold a briefing at 11:30 AM ET. This evening, President Biden will head to New York, ahead of his visit to all three 9/11 sites tomorrow

What’s Happening on Capitol Hill: Shoutout to Sen. Amy Klobuchar, who announced yesterday that she was successfully treated this year for stage 1A breast cancer. “I also want to call attention to the fact that many people have been delaying physicals and routine examinations because of the pandemic. I know that because I delayed mine,” she wrote in a blog post. “I hope my experience is a reminder for everyone of the value of routine health checkups, exams, and follow-through.”

 
 
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