MFN would threaten US biotech leadership

An MFN proposal misses the mark. Plus, measles and flu rage while vaccination declines. (992 words, 4 minutes, 57 seconds)

BIO: Codifying MFN would hamper US biotech leadership and patient access

A White House plan released last week includes a proposal that would weaken America’s innovation ecosystem and counter the goals of greater health care access and affordability that are shared by BIO and the Trump Administration.

The proposal: “The Great Healthcare Plan,” announced Jan. 15, calls for codifying most-favored nation (MFN) drug pricing in legislation.

Why it matters: Arbitrary price controls will reduce the number of novel medicines produced in the U.S. and limit patient access to critical therapies. While some larger companies have entered voluntary MFN agreements, making the program mandatory would harm the small and mid-sized businesses leading medical innovation.

BIO’s solution involves simplifying our health care delivery system—addressing the role of insurance companies in driving up costs and controlling price-inflating practices of pharmacy benefit managers (PBMs). The Administration's plan includes important initial steps toward these goals.

BIO’s view: “The President is right—we need to hold insurance companies accountable for the rising costs of healthcare. For far too long, America’s health insurers have delayed and denied Americans access to life-saving medicines, while driving up overall healthcare costs,” says BIO President & CEO John F. Crowley. “Let’s reform and simplify the system, including expanding access to medicines, cutting out middlemen, and reducing out-of-pocket costs.”

What to avoid: “Let’s not, however, import socialized medicine and drug rationing. Broadly codifying European price controls into American law would damage the 'virtuous circle' of innovation that has made America the world biotechnology leader,” Crowley adds. “Our goal is to work with Congress and the White House on the best solutions and bold reforms."

BIO’s campaign, “Simplify the System,” details how some entities siphon U.S. health care spending and explains how to fix the system, with data transparency and reforms of PBMs and the 340B Drug Discount Program. Learn more.

Measles and flu outbreaks underscore need for vaccination

As America faces potential loss of its measles elimination status and the flu rages, the solution is simple and available: vaccination.

Why it matters: Measles is completely preventable by vaccine, but vaccination levels have dropped since COVID. Flu vaccines protect against infection, hospitalization, and death, according to the Centers for Disease Control and Prevention (CDC), but CDC no longer routinely recommends flu vaccines for all children, as of Jan. 5.

Measles elimination statusofficially ends after a year of continuous domestic transmission. Today is exactly a year since measles was reported in West Texas. With the ongoing spread of measles, the U.S. is likely to lose elimination status.

Following a 33-year high of 2,242 measles cases in 2025, there were 171 cases already this year as of Jan. 14, according to the CDC. 95% of these cases involved children who were unvaccinated or had unknown vaccination status.

Flu is raging too: “There have been at least 15,000,000 illnesses, 180,000 hospitalizations, and 7,400 deaths from flu so far this season,” including “17 reported influenza-related pediatric deaths” as of Jan. 3, CDC says.

BIO’s view:BIO opposed CDC’s changed recommendations for flu shots and other childhood vaccines. “Decades ago, diseases like polio and measles brought suffering and death with no defense. Today, immunization represents the right and the ability to defend and protect those we love,” says BIO’s campaign, “Invest in America. Vaccinate.”

What Else to Read

BIO President & CEO John F. Crowley warned of biotech competition from China in a letter to the Editor in yesterday's Wall Street Journal. “We are on course to lose American dominance in perhaps the most important sector, biotechnology,” says Crowley's letter. “As the National Security Commission on Emerging Biotechnology recently warned, there’s a real possibility that China’s biotech capabilities ‘may soon eclipse [ours]. And if that happens, the United States may never be able to catch up.’ That’s why it’s so critical for the Trump administration and Congress to ensure America maintains our current slim lead.” Read more here.

Crowley also addressed the challenge of China on CNBC last week. “We need to reduce the reliance on Chinese biotechs,” BIO President & CEO John F. Crowley said in the first of several installments of his interview with CNBC Cures. “Once they are the dominant player, then they will decide who gets what medicines and technologies.” Noting China has gone from “a couple hundred” biotech R&D companies ten years ago to over 4,000, Crowley called for “eliminating risk and uncertainty in the regulatory process” to enable development of new medicines and encourage investment. “We don’t need to ‘out-China’ China, we just need to out-compete China,” he said, urging “a unique regulatory environment” that enables faster development, with common-sense flexibility for rare disease treatments. Read more, and watch, here.

Changes in vaccine advisory committees cause concerns. The two new appointees to the Centers for Disease Control and Prevention (CDC) Advisory Committee on Immunization Policy (ACIP) are “critics of vaccines who have contradicted mainstream medical guidance, including one who has described herself as an ‘anti-vaxxer,’ ” Washington Post reports. Meanwhile, “at least half of the eight members of the Advisory Commission on Childhood Vaccines (ACCV) have been removed,” causing concerns of plans for more changes in pediatric immunization recommendations, according to The Hill.

Program harnesses the power of mentorship for patient organization leaders. Applications are open until Feb. 20 for the Milken Institute’s FasterCures LeadersLink Program. Mentors with expertise in advancing research through strategic industry partnerships are a crucial part of the program to build capacity and support personal development of leaders from patient advocacy organizations that fund or conduct biomedical research. The program builds participants’ leadership skills and professional network, through mentorship and other types of support and involvement. Read more here.

Beltway Report

Intellectual property was a major topic during the Jan. 13 House Ways & Means Trade Subcommittee Hearing on Maintaining American Innovation and Technology Leadership. Witness Andrei Iancu, Co-Chair, Council for Innovation Promotion, called predictable, enforceable IP foundational to U.S. economic strength and national security, saying IP is among the few U.S. sectors with a trade surplus. Subcommittee Chairman Adrian Smith (R-NE) said “IP-intensive industries account for 41% of U.S. GDP and 63 million U.S. jobs.” Rep. Nathaniel Moran (R-TX) noted his own legislation to strengthen IP, the RESTORE Patent Rights Act and PREVAIL Act. Rep. Terri Sewell (D-AL) called effective IP enforcement essential to U.S. exports, employment, and global competitiveness.

As Congress works on spending legislation before the deadline at the end of the month, the House passed HR 7006, which includes continued funding for Gavi, the Vaccine Alliance and the Vaccine Injury Compensation Trust Fund. We will be watching in the coming weeks for the Health and Human Services Department budget legislation.

House Energy & Commerce Committee and House Ways & Means Committee have both planned Jan. 22 hearings where they will ask insurers how to make health care more affordable. Invited witnesses for both hearings include the CEOs of UnitedHealthcare, CVS Health, Cigna Healthcare, Elevance Health, and Blue Shield of California. The House Budget Committee scheduled a Jan. 21 hearing entitled “Reverse the Curse: Skyrocketing Health Care Costs and America’s Fiscal Future.”