California Life Sciences releases statement after passage of the Inflation Reduction Act
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August 12, 2022
SOUTH SAN FRANCISCO, LOS ANGELES, SAN DIEGO, WASHINGTON D.C. — California Life Sciences (CLS), the state’s most influential life sciences membership organization, released the following statement after Congressional passage of the Inflation Reduction Act. The statement can be attributed to CLS President and CEO Mike Guerra:
“California Life Sciences opposes the short-sighted drug pricing language in the Inflation Reduction Act passed by Congress today because of the disservice it does patients, risk it presents to California jobs, and the loss of innovative new cures that may no longer be developed.
From cancer to COVID-19 to Alzheimer’s, California’s biopharmaceutical companies are developing breakthrough therapies for a wide range of pressing medical needs. Our companies undertake high risk work, which can take a decade or more of development and trials to bring a safe and effective treatment to market. The drug pricing policies in this bill do not go far enough to make medicine affordable for all patients, will have a chilling effect on investment in small startup biotech companies, and restrict our members’ ability to reinvest their returns in that research and development. While this policy is called “negotiation,” in reality, manufacturers are faced with a take-it-or-leave-it price set by a government agency without recourse.
Patients and their families deserve to hope for cures, a longer life, and a better quality of life. This bill does not accomplish that goal.
We have championed policies to cap seniors’ out-of-pocket costs in Medicare Part D and applaud its inclusion in the bill. However, only about 10% of Medicare beneficiaries will directly benefit from this policy. We will continue to advocate for further bipartisan policies that improve access to medicine for Medicare beneficiaries, for those with private insurance, and for all other patients. We firmly believe that we can find solutions that both preserve the innovation ecosystem and address affordability for patients.
While we are disappointed about this bill’s impact for patients and the life science ecosystem, California Life Sciences remains ready to work with our Congressional delegation and other partners in government to develop real solutions that protect patient access and support our ecosystem’s work to develop new cures.”
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About California Life Sciences (CLS): California Life Sciences (CLS) is the state’s most influential and impactful life sciences membership organization, advocating for the sector and its diverse innovation pipeline. For more than 30 years, CLS has served the community by supporting companies of all sizes, from early-stage innovators and startups to established industry leaders in the fields of biotechnology, pharmaceuticals, and medical technology. CLS also works closely with universities, academic and research institutions, the investment community, and other critical partners that promote this vibrant sector. With offices in South San Francisco, San Diego, Sacramento, Los Angeles, and Washington DC, CLS works to shape public policy, improve access to breakthrough technologies, educate lawmakers, and advance equity within our ecosystem by championing innovative solutions for some of the most pressing challenges of our times. In doing so, CLS fulfills its mission to protect and nurture California’s life sciences industry, empowering discoveries that lead to healthier lives around the world.
Media Contact:
Alex Burch
California Life Sciences